| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.17 | 333 |
| Intrinsic value (DCF) | 2.44 | -64 |
| Graham-Dodd Method | 6.46 | -4 |
| Graham Formula | 5.74 | -15 |
Hunan Hansen Pharmaceutical Co., Ltd. is a prominent Chinese pharmaceutical manufacturer specializing in the production and distribution of both traditional Chinese medicine (TCM) preparations and chemical medicines. Headquartered in Yiyang, China, the company serves domestic and international markets with a diverse portfolio of drug formulations including injections, oral liquids, tablets, capsules, granules, syrups, decoctions, tinctures, and pills. Operating within China's expansive healthcare sector, Hansen Pharmaceutical plays a vital role in the Drug Manufacturers - Specialty & Generic industry, leveraging its manufacturing capabilities to address various therapeutic needs. The company's dual focus on TCM and chemical drugs positions it strategically within China's healthcare ecosystem, which increasingly values the integration of traditional and modern medicine approaches. With a market capitalization of approximately CNY 3.36 billion, Hansen Pharmaceutical represents a significant player in China's pharmaceutical landscape, contributing to healthcare accessibility through its diverse product offerings and manufacturing expertise in multiple drug delivery formats.
Hunan Hansen Pharmaceutical presents a mixed investment profile with moderate financial health indicators. The company generated CNY 1.00 billion in revenue with a solid net income of CNY 220.2 million, translating to a healthy profit margin of approximately 22%. With a beta of 0.75, the stock demonstrates lower volatility than the broader market, potentially appealing to risk-averse investors. However, the absence of dividend payments (dividend per share: 0) may deter income-focused investors. The company maintains reasonable liquidity with CNY 128.0 million in cash against CNY 84.5 million in total debt, though operating cash flow of CNY 130.8 million suggests adequate but not exceptional cash generation. The primary investment consideration revolves around exposure to China's pharmaceutical market growth balanced against the competitive pressures and regulatory environment facing mid-sized drug manufacturers in China.
Hunan Hansen Pharmaceutical operates in the highly competitive Chinese pharmaceutical market, where its competitive positioning is defined by several key factors. The company's primary advantage lies in its dual expertise in both traditional Chinese medicine and chemical drug manufacturing, allowing it to address diverse market segments and therapeutic areas. This diversification provides some insulation against market shifts between traditional and modern medicine preferences. However, as a mid-sized player with approximately CNY 1 billion in revenue, Hansen faces significant scale disadvantages compared to pharmaceutical giants in China. The company's product portfolio spanning multiple formulations (injections, oral liquids, tablets, etc.) demonstrates manufacturing versatility but may lack the focused therapeutic area dominance that characterizes more specialized competitors. Hansen's international operations provide some geographic diversification, though the domestic Chinese market likely represents its primary revenue source. The company's financial metrics, including a 22% net margin, indicate reasonable operational efficiency, but its modest market capitalization of CNY 3.36 billion suggests limited resources for extensive R&D compared to larger competitors. In China's rapidly consolidating pharmaceutical sector, Hansen's competitive longevity will depend on its ability to maintain manufacturing quality, navigate regulatory requirements, and potentially develop niche specializations that differentiate it from both massive state-owned enterprises and innovative biopharma companies.