China Medical System Holdings Limited (0867.HK) stock analysis

In our weekly check, China Medical System Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5.

About China Medical System Holdings Limited

China Medical System Holdings Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Hong Kong, listed on HKSE as 0867.HK.

What our checks show for 0867.HK

Red flags

• The net margin fell by 18.1 points over 5 years, to 18.1%: the company keeps less of each sale as profit.
• The gross margin fell by 3.4 points, to 71.5%: costs are rising faster than prices.
• Revenue fell 3.5% a year over the last 3 years.
• The dividend takes 295% of profit: little cushion if profit falls.
• The stock has fallen as much as 72% from a peak. Would you have held through that?

Warning signs

• Operating cash flow is only 0.51x net profit: part of the reported profit does not arrive as cash.
• Earnings per share fell 22.5% a year over the last 3 years.
• Net profit fell 23% a year over the last 3 years.
• Free cash flow is only 3% of revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 9.4%.

Strengths

• Debt is low: 0.05x equity.
• Operating profit covers interest 11.7 times over.
• Analysts expect earnings per share to grow about 23.5% a year over the next years.
• Analysts expect revenue to grow about 18.8% a year over the next years.
• Analysts expect the net margin to improve by 2.4 points from today's 18.1%.
• The price is 13.4 times earnings (P/E), reasonable for its growth.

Similar companies

VTRS · ZTS · SDZ.SW · HLN · HYPE3.SA

Questions

What grade does China Medical System Holdings Limited (0867.HK) have?

In our weekly check, China Medical System Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 6, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0867.HK stock?

This week's biggest flags for China Medical System Holdings Limited: Margins falling, Gross margin falling, Weak revenue growth. In total 11 of 25 checks show a warning or a red flag.

What does China Medical System Holdings Limited do?

China Medical System Holdings Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in Hong Kong, listed on HKSE as 0867.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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