# Pharmaron Beijing (300759.SHE)

Canonical: https://gigainvestors.com/s/300759.SHE

Analysis as of: 2026-10-16T07:35:46.991Z. Financial observations: FY2014–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 39.05 per share; close as of 2026-10-15.

Estimated value: low CNY 12.84 per share, central CNY 17.84 per share, high CNY 20.75 per share. Buy at or below the central value CNY 17.84 per share. Valuation as of 2026-10-16T07:35:46.991Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.28×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.11×

- FY2018: 0.13×

- FY2019: 0.17×

- FY2020: 0.26×

- FY2021: 0.26×

- FY2022: 0.16×

- FY2023: 0.16×

- FY2024: 0.17×

- FY2025: 0.16×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.6%

- ROIC, second-lowest year: 8.6%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 35.2%

- Recent gross margin (lower of latest and 3-year median): 34.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 25.2%

- ROIC including acquisitions, ten-year median: 7.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.6%

- FY2017: 8.0%

- FY2018: 10.2%

- FY2019: 13.9%

- FY2020: 23.9%

- FY2021: 20.1%

- FY2022: 11.9%

- FY2023: 12.6%

- FY2024: 12.7%

- FY2025: 13.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.71×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.7B

- Net income, five-year total: CNY 8.1B

- Return on incremental invested capital: 11.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 1.1 pp

- Working capital / revenue, final three-year average: 28.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.97×

- FY2022: 0.78×

- FY2023: 0.23×

- FY2024: 0.63×

- FY2025: 0.95×

### management: fail

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.6% vs 12.7%

- Per-share earnings: 0.23 to 0.94 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.4%

- Ordinary dilution, 5-year annual growth: 17.5%

- Diluted shares, 10-year annual growth: 13.4%

- Diluted shares, 5-year annual growth: 17.5%

- Per-share value growth: 19.0%

- Per-share value change: CNY 0.71

- Per-share value, starting three-year median: CNY 0.23

- Per-share value, ending three-year median: CNY 0.94

- Buybacks concentrated in cheaper years (correlation): -0.09

- Average buyback yield: 4.0%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 4.8B

- Cumulative net income, 10 years: CNY 11B

- ROIC, first three-year median: 8.6%

- ROIC, last three-year median: 12.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.23

- FY2017: CNY 0.39

- FY2018: CNY 0.56

- FY2019: CNY 0.83

- FY2020: CNY 1.48

- FY2021: CNY 2.10

- FY2022: CNY 0.77

- FY2023: CNY 0.90

- FY2024: CNY 1.01

- FY2025: CNY 0.94

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.94×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.1%

- FY2017: -8.2%

- FY2018: -9.5%

- FY2019: -3.9%

- FY2020: -4.0%

- FY2021: -2.2%

- FY2022: -3.7%

- FY2023: -4.4%

- FY2024: -3.3%

- FY2025: -5.7%

## Holders

## Price story

Down 69% since Oct 2021 · sales +14.8%

Story as of 2026-10-16T10:00:06.018Z; price observation 2026-10-15.

Price needs cash profits to grow 17% a year for ten years

### Sales · FY2024–2025

sales +14.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.6B 

- FY2017: CNY 2.3B 

- FY2018: CNY 2.9B 

- FY2019: CNY 3.8B 

- FY2020: CNY 5.1B 

- FY2021: CNY 7.4B 

- FY2022: CNY 10B 

- FY2023: CNY 12B 

- FY2024: CNY 12B 

- FY2025: CNY 14B 

### Gross margin · FY2025

gross margin 34.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.0% 

- FY2017: 33.7% 

- FY2018: 32.7% 

- FY2019: 35.5% 

- FY2020: 37.4% 

- FY2021: 36.0% 

- FY2022: 36.7% 

- FY2023: 35.7% 

- FY2024: 34.1% 

- FY2025: 34.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in biotechnology; annual sales are CNY 14.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2025: revenue 14095078734.95; grossProfit 4909630536.26; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300759.SHE: Pharmaron Beijing Co., Ltd., together with its subsidiaries, operates as a pharmaceutical research and development service platform in North America, Europe, the Mainland China, Asia, and internationally. It operates through five segments: Laboratory Services; Chemical and Formulation Process Development and Manufacturing Services; Clinical Research Services; Macromolecule and Cell and Gene Therapy Services; and Others. The company offers laboratory chemistry and biological science services, including small molecule chemical drugs, oligonucleotides, peptides, antibodies, antimicrobial agents, antibody-drug conjugates (ADCs), and cell and gene therapy products; small molecule CDMO services, such as API process development and production, material science and preformulation, formulation development, and analytical development. It also provides clinical research services; macromolecular and cell and gene therapy services comprising drug discovery, development and production services, cell and gene therapy laboratory services, and gene therapy drug development and production services. In addition, the company is involved in the provision of technology development, technology transfer, technical consultation, technical services, and technical training; import and export of goods and technologies. Pharmaron Beijing Co., Ltd. was incorporated in 2004 and is headquartered in Beijing, the People's Republic of China.

### Why customers stay

Margins ranged from 34.1% to 35.7% during 2023–25; it earns 12.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2023: grossProfit / revenue = 35.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2024: grossProfit / revenue = 34.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2025: grossProfit / revenue = 34.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); 10-year return on capital observations [[2016,0.08605915449503009],[2017,0.0804851768174553],[2018,0.1022393148273393],[2019,0.13913717804088246],[2020,0.23924347959051182],[2021,0.201258312742003],[2022,0.11928248714925015],[2023,0.12597596708035633],[2024,0.12686414371404553],[2025,0.13741883962844256]]; median 0.12642005539720091. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 37% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); Gross margin observations: [[2021,0.3595051525749623],[2022,0.36668376318005985],[2023,0.35672731009679887]]; range within 2 percentage points.

### Where the cash goes

Spends 93.7% of cash earnings on expansion; earns 11% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2018: growth capex 383869008.88666975; upkeep 257116626.11333025; owner earnings 286064189.88666975. Growth capex / owner earnings = 1.3418981559304832.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2019: growth capex 491748335; upkeep 262857610; owner earnings 547191491. Growth capex / owner earnings = 0.8986768674003376.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2020: growth capex 1010989664; upkeep 304848690; owner earnings 1172382390. Growth capex / owner earnings = 0.8623378111300358.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2021: growth capex 1688183823; upkeep 404637744; owner earnings 1604161041.362. Growth capex / owner earnings = 1.0523780215773482.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2022: growth capex 2232175036.2459087; upkeep 717686114.7540913; owner earnings 1065573682.7299087. Growth capex / owner earnings = 2.094810591161812.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2023: growth capex 1000580299.8727107; upkeep 1864740512.5072894; owner earnings 360520389.36671066. Growth capex / owner earnings = 2.7753778409879337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2024: growth capex 594971650.7775207; upkeep 1445669534.2224793; owner earnings 1130718786.2655206. Growth capex / owner earnings = 0.5261888791487778.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2025: growth capex 1488132160.3500001; upkeep 1180945682.74; owner earnings 1588014312.8700001. Growth capex / owner earnings = 0.9371024859722554.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); Incremental return on capital 0.1102571031850306, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); Dividend observations: [[2016,14413701.5],[2017,60599309],[2018,74595187],[2019,72192000],[2020,119137735],[2021,237546000],[2022,404761140],[2023,444791842.94],[2024,542234338.9],[2025,531048922.13]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); FY2025: cash repurchases 53142257.70666666 CNY.

### Are managers owners

Insiders own 35.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300759.SHE SharesStats.PercentInsiders = 35.18 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 17% yearly over ten years; actual growth was 32.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:46.991Z); Ten-year compound average after fade. Initial solved rate 0.2330600421185659. Price 39.05; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.05504828634466417 → FY2025 0.8964618356544574. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2019-01: CNY 9.78 per share

- 2019-02: CNY 25.87 per share

- 2019-03: CNY 28.09 per share

- 2019-04: CNY 23.80 per share

- 2019-05: CNY 24.15 per share

- 2019-06: CNY 22.79 per share

- 2019-07: CNY 23.70 per share

- 2019-08: CNY 27.85 per share

- 2019-09: CNY 31.03 per share

- 2019-10: CNY 37.35 per share

- 2019-11: CNY 31.93 per share

- 2019-12: CNY 34.36 per share

- 2020-01: CNY 39.07 per share

- 2020-02: CNY 38.45 per share

- 2020-03: CNY 39.55 per share

- 2020-04: CNY 42.72 per share

- 2020-05: CNY 46.34 per share

- 2020-06: CNY 65.60 per share

- 2020-07: CNY 69.95 per share

- 2020-08: CNY 73.40 per share

- 2020-09: CNY 69.33 per share

- 2020-10: CNY 76.67 per share

- 2020-11: CNY 62.40 per share

- 2020-12: CNY 80.27 per share

- 2021-01: CNY 95.41 per share

- 2021-02: CNY 84.83 per share

- 2021-03: CNY 99.93 per share

- 2021-04: CNY 108.13 per share

- 2021-05: CNY 120.20 per share

- 2021-06: CNY 144.66 per share

- 2021-07: CNY 131.98 per share

- 2021-08: CNY 128.33 per share

- 2021-09: CNY 143.61 per share

- 2021-10: CNY 127.57 per share

- 2021-11: CNY 121.07 per share

- 2021-12: CNY 94.18 per share

- 2022-01: CNY 78.83 per share

- 2022-02: CNY 80.82 per share

- 2022-03: CNY 78.67 per share

- 2022-04: CNY 83.47 per share

- 2022-05: CNY 79.51 per share

- 2022-06: CNY 63.48 per share

- 2022-07: CNY 51.66 per share

- 2022-08: CNY 45.37 per share

- 2022-09: CNY 36.03 per share

- 2022-10: CNY 34.67 per share

- 2022-11: CNY 42.75 per share

- 2022-12: CNY 45.33 per share

- 2023-01: CNY 49.47 per share

- 2023-02: CNY 39.85 per share

- 2023-03: CNY 32.65 per share

- 2023-04: CNY 32.64 per share

- 2023-05: CNY 30.73 per share

- 2023-06: CNY 25.52 per share

- 2023-07: CNY 28.30 per share

- 2023-08: CNY 29.80 per share

- 2023-09: CNY 31.10 per share

- 2023-10: CNY 33.25 per share

- 2023-11: CNY 33.40 per share

- 2023-12: CNY 28.98 per share

- 2024-01: CNY 21.10 per share

- 2024-02: CNY 23.35 per share

- 2024-03: CNY 20.37 per share

- 2024-04: CNY 19.75 per share

- 2024-05: CNY 20.64 per share

- 2024-06: CNY 18.58 per share

- 2024-07: CNY 22.12 per share

- 2024-08: CNY 19.99 per share

- 2024-09: CNY 30.35 per share

- 2024-10: CNY 29.17 per share

- 2024-11: CNY 27.51 per share

- 2024-12: CNY 25.70 per share

- 2025-01: CNY 24.85 per share

- 2025-02: CNY 26.44 per share

- 2025-03: CNY 26.92 per share

- 2025-04: CNY 23.17 per share

- 2025-05: CNY 23.84 per share

- 2025-06: CNY 24.54 per share

- 2025-07: CNY 31.10 per share

- 2025-08: CNY 30.26 per share

- 2025-09: CNY 35.75 per share

- 2025-10: CNY 33.51 per share

- 2025-11: CNY 28.95 per share

- 2025-12: CNY 28.43 per share

- 2026-01: CNY 29.68 per share

- 2026-02: CNY 29.60 per share

- 2026-03: CNY 27.98 per share

- 2026-04: CNY 29.31 per share

- 2026-05: CNY 25.10 per share

- 2026-06: CNY 28.93 per share

- 2026-07: CNY 36.80 per share

- 2026-08: CNY 43.30 per share

- 2026-09: CNY 44.97 per share

- 2026-10: CNY 41.80 per share

## Annual estimated value (CNY per share)

- FY2019: low CNY 8.50 per share, central CNY 8.72 per share, high CNY 9.00 per share

- FY2020: low CNY 11.73 per share, central CNY 12.69 per share, high CNY 13.97 per share

- FY2021: low CNY 21.24 per share, central CNY 23.30 per share, high CNY 26.05 per share

- FY2022: low CNY 10.35 per share, central CNY 11.62 per share, high CNY 13.31 per share

- FY2023: low CNY 13.89 per share, central CNY 15.31 per share, high CNY 17.21 per share

- FY2024: low CNY 11.21 per share, central CNY 15.40 per share, high CNY 17.83 per share

- FY2025: low CNY 12.05 per share, central CNY 16.86 per share, high CNY 19.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:27.467Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.