The average target price of 002437.SZ is 3.2 and suggests 10% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 3.2. This translates into 10% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 3.2. This suggests 10% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Harbin Gloria Pharmaceuticals Co., Ltd. engages in the research, development, production, and sale of pharmaceutical products primarily in the People's Republic of China. It offers cardiac cerebrovascular medication, skeletal muscle system, vitamins and minerals, urinary system medication, antitumor medication, endocrine medicine, anti-infective drugs, respiratory medication, antihistamine, peptic, and other products. Harbin Gloria Pharmaceuticals Co., Ltd. was founded in 2000 and is based in Harbin, the People's Republic of China.

China

Harbin Gloria Pharmaceuticals Co., Ltd

Healthcare

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are somewhat mixed. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

002437.SZ reported revenue of CNY 2 389mn in the last 12 months, down 1% from FY24. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 4% from FY24 to CNY 0.11. Market expects EPS to reach CNY 0.00 in FY25.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). The stock has outperformed this peer group by 20ppts over past six months and grown 5ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is neutral.

The company has reported modest EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 13.1% in the last 12 months, up from 7.8% in FY23. 

Historically, 002437.SZ has reported modest net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 10.1%, a growth from 4.6% in FY23. 

Harbin Gloria Pharmaceuticals Co., Ltd reported a return on equity (RoE) of 13.4% in the last 12 months, up from 7.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 8.0% in the last 12 months, an increase from 3.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to 12.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.0 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

002437.SZ has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually quite stable and remains extremely favourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and bleak profitability.

In highly turbulent market conditions, 002437.SZ is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 002437.SZ is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to minimal. 

Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA, reasonably priced on P/FCF. 

Harbin Gloria Pharmaceuticals Co., Ltd

CN¥ 2.91

4

Harbin Gloria Pharmaceuticals Co., Ltd

CN¥ 2.91

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 2.91

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