The average target price of 002437.SZ is 3.2 and suggests 32% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 3.2. This translates into 32% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 3.2. This suggests 32% 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 irregularly. 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 unclear. 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.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 3ppts and its growth decelerated by 7ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months its performance trailed that of this peer group by 8ppts and its growth decelerated by 5ppts in the previous month. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

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. 

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

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

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.6 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 above average trading liquidity. The average private investor can sell his common position in the stock almost 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 moderately volatile. In other words, the stock will fall 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 moderate. 

In normal market circumstances, 002437.SZ is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with 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 fairly valued 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¥ 2.45

4

Harbin Gloria Pharmaceuticals Co., Ltd

CN¥ 2.45

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CN¥ 2.45

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