China A-share · SSE · 600276
Hengrui Medicine (600276) stock analysis: valuation and financials
医药制造业
¥45.49 -0.0% Price as of Oct 14, 2026
High-quality net-cash pharma compounder: FY2025 revenue CNY31.6B, +13.0%, ROIC 39.4%, net cash CNY38.8B — but TTM growth 3.9% and a demanding price; base case sits 21.2% below spot.
- Market cap
- ¥301.9B
- P/E
- 39.1x
- EV/Sales
- 8.4x
- FCF yield
- 1.9%
- 52-week range
- ¥42.67 – ¥66.74
Research as of Oct 15, 2026
Business quality scorecard
- Growth59
- Profitability94
- Cash flow86
- Balance sheet100
- Capital allocation87
- Innovation61
- Valuation41
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Hospitals, pharmacy chains and distributors pay for oncology, neuroscience, contrast-media and metabolic drugs plus other pharma manufacturing; core pharma is 88.6% of FY2025 revenue (CNY 28.0B, +12.0% YoY) and the profit engine, with group operating margin at 28.4%.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥25.9B | ¥21.3B | ¥22.8B | ¥28.0B | ¥31.6B |
| Revenue growth | -6.6% | -17.9% | +7.3% | +22.6% | +13.0% |
| Gross margin | 85.6% | 83.6% | 84.6% | 86.2% | 86.2% |
| Operating margin | 18.0% | 19.3% | 21.5% | 26.8% | 28.4% |
| Net income | ¥4.5B | ¥3.9B | ¥4.3B | ¥6.3B | ¥7.7B |
| Free cash flow | ¥2.6B | -¥726.9M | ¥6.2B | ¥5.5B | ¥8.3B |
| FCF margin | 9.9% | -3.4% | 27.0% | 19.5% | 26.2% |
Amounts in CNY · What is free cash flow?
Margins Gross margin flat: 86.21% FY2025 vs 86.25% FY2024, TTM 86.08%. Operating margin rose to 28.42% from 26.77% (TTM 28.47%; Q2 FY2026 33.91%) on revenue +13.0% versus SG&A +9.4% and R&D +5.75%. Expansion is operating leverage, not gross margin.
- Cash flow HealthyTTM operating cash flow CNY8.92B exceeds net income CNY7.73B; FY2025 OCF CNY11.24B vs CNY7.71B, cash conversion 1.43x, so earnings are cash-backed.
- Debt LowNet cash of CNY38.81B; net debt/EBITDA -3.91x and total debt only CNY29.75M (debt/equity 0.0005) — effectively debt-free.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- ¥38.8B
- Total debt
- ¥29.8M
- Net cash
- ¥38.8B
- Interest coverage
- 1568.9x
- Current ratio
- 11.7x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management StrongExecution: revenue fell 17.9% in FY2022, then grew 22.6% (FY2024) and 13.0% (FY2025); net margin 24.4% now exceeds FY2020's 22.8%, a clean post-volume-based-procurement reset.
Valuation range
Implied value per share · Price when researched: ¥45.49
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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