<div id="readability-page-1"><div><p>Grand Pharmaceutical Group (SEHK:512) has just posted its full year 2025 results, reporting higher sales, sharply lower net income, a reduced annual dividend, and fresh NMPA approval for ophthalmic drug GPN01768.</p> <p>See our latest analysis for Grand Pharmaceutical Group.</p> <p>The share price is HK$6.78 after a 3.04% 1 day share price return. The 30 day share price return of 12.52% and year to date share price return of 13.08% point to fading short term momentum despite a 3 year total shareholder return of 70.98%.</p> <p>If Grand Pharmaceutical’s latest results have you rethinking where growth could come from next, it may be worth scanning other healthcare names through 124 healthcare AI stocks</p> <p>With the share price well below some valuation estimates, yet profits under pressure and the dividend trimmed, investors face a key question: is Grand Pharmaceutical undervalued after this reset, or is the market already pricing in its future growth?</p> <h2>Preferred P/E of 19.1x: Is it justified?</h2> <p>On a P/E of 19.1x, Grand Pharmaceutical looks slightly cheap versus its own estimated fair P/E, yet more expensive than many Hong Kong pharma peers at the current HK$6.78 share price.</p> <p>The P/E ratio compares the current share price to earnings per share and is a quick way to see how much investors pay for each unit of profit. For a diversified pharmaceuticals and medical devices group like Grand Pharmaceutical, this matters because earnings quality, growth forecasts and sector risk can all influence how high or low that multiple settles.</p> <p>According to the SWS fair ratio work, a P/E closer to 22.5x could be justified. This is higher than the current 19.1x and indicates there could be room for the multiple to move towards that level if earnings forecasts and cash flows develop in line with expectations. At the same time, the shares are trading above the Hong Kong pharmaceuticals industry average P/E of 12x. This indicates the market is already assigning Grand Pharmaceutical a premium versus many local peers based on its earnings profile and outlook.</p> <p>Explore the SWS fair ratio for Grand Pharmaceutical Group</p> <p><strong>Result: Price-to-earnings of 19.1x (UNDERVALUED)</strong></p> <p>However, there are clear risks, including recent share price weakness, a 3 year return of 70.98%, and pressure on profits alongside a reduced dividend.</p> <p>Find out about the key risks to this Grand Pharmaceutical Group narrative.</p> <h2>Another view: DCF signals a much bigger gap</h2> <p>While the 19.1x P/E suggests Grand Pharmaceutical looks modestly cheap, the SWS DCF model points to a very different picture, with an estimated value of HK$22.44 per share versus the current HK$6.78, implying the shares are heavily undervalued. Which signal do you trust more when the story splits like this?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/639e7f90-1c43-4e2e-adb8-074b9a24cc0b/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTI5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/639e7f90-1c43-4e2e-adb8-074b9a24cc0b/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTI5"/><figcaption>512 Discounted Cash Flow as at Mar 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Grand Pharmaceutical Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 237 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2>Next Steps</h2> <p>The mixed signals on value, growth and income can feel conflicting, so it makes sense to look through the full set of numbers and form your own view quickly. To weigh the trade off between what could go right and what could go wrong, check the 3 key rewards and 1 important warning sign.</p> <h2>Looking for more investment ideas?</h2> <p>If Grand Pharmaceutical has sharpened your thinking, do not stop here. Put the same discipline to work across other opportunities while the data is fresh in your mind.</p> <ul> <li>Spot potential mispricings by scanning 237 high quality undervalued stocks that pair solid fundamentals with room for the market to catch up.</li> <li>Strengthen your income stream by reviewing 471 dividend fortresses that focus on higher yields backed by healthier balance sheets.</li> <li>Dial down portfolio risk by filtering for 270 resilient stocks with low risk scores that score well on resilience and financial stability.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

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<p>Grand Pharmaceutical Group (SEHK:512) reported its 2025 results with increased sales but lower net income and a reduced dividend. The share price is HK$6.78, reflecting a 3.04% daily return and a 12.52% return over 30 days. The P/E ratio stands at 19.1x, suggesting it may be undervalued compared to its fair value of HK$22.44 per share according to DCF analysis. However, risks include recent share price weakness and profit pressure. Investors are encouraged to evaluate the mixed signals regarding growth and income potential.</p>

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A Look At Grand Pharmaceutical Group (SEHK:512) Valuation After 2025 Earnings Reset And New Ophthalmic Drug Approval