Grand Pharmaceutical Group Limited
Grand Pharmaceutical Group Limited Fundamental Analysis
Grand Pharmaceutical Group Limited (0512.HK) shows moderate financial fundamentals with a PE ratio of 20.39, profit margin of 10.10%, and ROE of 7.26%. The company generates $12.3B in annual revenue with moderate year-over-year growth of 5.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0512.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0512.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0512.HK trades at attractive valuation levels.
Growth Score
Moderate0512.HK shows steady but slowing expansion.
Financial Health Score
Excellent0512.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0512.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0512.HK Expensive or Cheap?
P/E Ratio
0512.HK trades at 20.39 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0512.HK's PEG of -0.50 indicates potential undervaluation.
Price to Book
The market values Grand Pharmaceutical Group Limited at 1.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.26 times EBITDA. This is generally considered low.
How Well Does 0512.HK Make Money?
Net Profit Margin
For every $100 in sales, Grand Pharmaceutical Group Limited keeps $10.10 as profit after all expenses.
Operating Margin
Core operations generate 10.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.26 in profit for every $100 of shareholder equity.
ROA
Grand Pharmaceutical Group Limited generates $4.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grand Pharmaceutical Group Limited produces operating cash flow of $1.66B, showing steady but balanced cash generation.
Free Cash Flow
Grand Pharmaceutical Group Limited produces free cash flow of $1.07B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
0512.HK converts 4.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How 0512.HK Stacks Against Its Sector Peers
| Metric | 0512.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.39 | 28.45 | Better (Cheaper) |
| ROE | 7.26% | 763.00% | Weak |
| Net Margin | 10.10% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.34 | Neutral |
| Current Ratio | 1.14 | 2795.60 | Neutral |
| ROA | 4.57% | -16588.00% (disorted) | Weak |
0512.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grand Pharmaceutical Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.23%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-31.90%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-100.00%
Industry Style: Defensive, Growth, Innovation
Declining