# Hansoh Pharmaceutical Group (3692.HK)

Canonical: https://gigainvestors.com/s/3692.HK

Analysis as of: 2026-10-16T07:34:32.088Z. Financial observations: FY2019–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 31.38 per share; close as of 2026-10-15.

Estimated value: low HKD 16.32 per share, central HKD 17.73 per share, high HKD 19.62 per share. Buy at or below the central value HKD 17.73 per share. Valuation as of 2026-10-16T07:34:32.088Z; 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; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 7 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.32×

- FY2020: 0.32×

- FY2021: 0.31×

- FY2022: 0.30×

- FY2023: 0.28×

- FY2024: 0.33×

- FY2025: 0.37×

### moat: pass

- ROIC, median of available years: 50.7%

- ROIC, second-lowest year: 47.1%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 90.8%

- Recent gross margin (lower of latest and 3-year median): 90.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.3%

- ROIC including acquisitions, ten-year median: 52.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 49.2%

- FY2020: 54.2%

- FY2021: 50.7%

- FY2022: 45.3%

- FY2023: 47.1%

- FY2024: 64.0%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 18B

- Net income, five-year total: CNY 19B

- Return on incremental invested capital: 98.6%

- Working capital / revenue, annual change: -1.3 pp

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

- FY2021: 0.99×

- FY2022: 1.01×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 50.7% vs 64.0%

- Per-share earnings: 0.46 to 0.73 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.3%

- Per-share value growth: 12.5%

- Per-share value change: CNY 0.28

- Per-share value, starting three-year median: CNY 0.46

- Per-share value, ending three-year median: CNY 0.73

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 4 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 50.7%

- ROIC, last three-year median: 64.0%

Chart: Earnings per share; fiscal year observations.

- FY2019: CNY 0.47

- FY2020: CNY 0.44

- FY2021: CNY 0.46

- FY2022: CNY 0.44

- FY2023: CNY 0.54

- FY2024: CNY 0.73

- FY2025: CNY 0.93

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 0.79×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.21×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -3.9%

- FY2020: 0.9%

- FY2021: 0.5%

- FY2022: -0.5%

- FY2023: 0.5%

- FY2024: 1.6%

- FY2025: -3.0%

## Holders

## Price story

Down 22% since Nov 2025 · sales +22.6%

Story as of 2026-10-16T10:00:01.111Z; price observation 2026-10-15.

Price needs cash profits to grow 10.6% a year for ten years

### Sales · FY2024–2025

sales +22.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: CNY 8.7B 

- FY2020: CNY 8.7B 

- FY2021: CNY 9.9B 

- FY2022: CNY 9.4B 

- FY2023: CNY 10B 

- FY2024: CNY 12B 

- FY2025: CNY 15B 

### Gross margin · FY2025

gross margin 90%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: 91.5% 

- FY2020: 90.8% 

- FY2021: 91.2% 

- FY2022: 90.8% 

- FY2023: 89.8% 

- FY2024: 91.0% 

- FY2025: 90.0% 

## Owner memo

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

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are CNY 15 billion.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2025-12-31 (filed 2026-10-16T07:34:32.088Z); FY2025: revenue 15028324000; grossProfit 13530457000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 89.8% to 91% during 2023–25; it earns 50.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2023-12-31 (filed 2026-10-16T07:34:32.088Z); FY2023: grossProfit / revenue = 89.8%.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2024-12-31 (filed 2026-10-16T07:34:32.088Z); FY2024: grossProfit / revenue = 91%.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2025-12-31 (filed 2026-10-16T07:34:32.088Z); FY2025: grossProfit / revenue = 90%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); 7-year return on capital observations [[2019,0.4923251624652882],[2020,0.5419790646514988],[2021,0.5067148371258167],[2022,0.45288953638828505],[2023,0.4714206671562464],[2024,0.6404142868370275],[2025,1.2052338055262808]]; median 0.5067148371258167. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 91% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); Gross margin observations: [[2021,0.912427815568999],[2022,0.9075919726381602],[2023,0.8979728035158236]]; range within 2 percentage points.

### Where the cash goes

Reinvests 4% of cash earnings; earns 98.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); FY2019: growth capex 0; upkeep 592476000; owner earnings 2163932800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); FY2020: growth capex 2409303.6293127537; upkeep 1425235696.3706872; owner earnings 1358395503.6293128. Growth capex / owner earnings = 0.0017736392846381351.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2021-12-31 (filed 2026-10-16T07:34:32.088Z); FY2021: growth capex 196974000; upkeep 278467000; owner earnings 2695925000. Growth capex / owner earnings = 0.07306360525608094.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2022-12-31 (filed 2026-10-16T07:34:32.088Z); FY2022: growth capex 0; upkeep 291823000; cash acquisitions 252851000; owner earnings 2617503200. Growth capex plus acquisitions / owner earnings = 0.09660007292445717.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2023-12-31 (filed 2026-10-16T07:34:32.088Z); FY2023: growth capex 0; upkeep 362524000; cash acquisitions 0; owner earnings 3265201000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2024-12-31 (filed 2026-10-16T07:34:32.088Z); FY2024: growth capex 123586000; upkeep 401349000; cash acquisitions 108571000; owner earnings 4356421200. Growth capex plus acquisitions / owner earnings = 0.05329076077400413.

- Source: https://eodhd.com/api/fundamentals/3KY.F.json#2025-12-31 (filed 2026-10-16T07:34:32.088Z); FY2025: growth capex 96443000; upkeep 393018000; cash acquisitions 126520000; owner earnings 5542542600. Growth capex plus acquisitions / owner earnings = 0.04022756631586377.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); Incremental return on capital 0.9863808016151125, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); Dividend observations: [[2019,1500000000],[2020,4200000000],[2021,380866000],[2022,712184000],[2023,652082000],[2024,1858348000],[2025,2012184000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 79.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 3692.HK SharesStats.PercentInsiders = 79.554 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:32.088Z); Ten-year compound average after fade. Initial solved rate 0.14014096821614908. Price 31.38; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2019-06: HKD 20.65 per share

- 2019-07: HKD 21.25 per share

- 2019-08: HKD 26.55 per share

- 2019-09: HKD 24.00 per share

- 2019-10: HKD 23.90 per share

- 2019-11: HKD 23.10 per share

- 2019-12: HKD 25.90 per share

- 2020-01: HKD 28.00 per share

- 2020-02: HKD 27.05 per share

- 2020-03: HKD 26.30 per share

- 2020-04: HKD 30.10 per share

- 2020-05: HKD 33.65 per share

- 2020-06: HKD 36.50 per share

- 2020-07: HKD 33.50 per share

- 2020-08: HKD 36.75 per share

- 2020-09: HKD 37.65 per share

- 2020-10: HKD 34.55 per share

- 2020-11: HKD 37.25 per share

- 2020-12: HKD 37.60 per share

- 2021-01: HKD 42.40 per share

- 2021-02: HKD 39.50 per share

- 2021-03: HKD 37.25 per share

- 2021-04: HKD 33.55 per share

- 2021-05: HKD 33.85 per share

- 2021-06: HKD 34.00 per share

- 2021-07: HKD 27.85 per share

- 2021-08: HKD 21.25 per share

- 2021-09: HKD 19.80 per share

- 2021-10: HKD 17.38 per share

- 2021-11: HKD 15.92 per share

- 2021-12: HKD 19.00 per share

- 2022-01: HKD 16.04 per share

- 2022-02: HKD 16.72 per share

- 2022-03: HKD 13.12 per share

- 2022-04: HKD 13.02 per share

- 2022-05: HKD 14.14 per share

- 2022-06: HKD 15.84 per share

- 2022-07: HKD 15.30 per share

- 2022-08: HKD 15.70 per share

- 2022-09: HKD 12.42 per share

- 2022-10: HKD 12.12 per share

- 2022-11: HKD 14.76 per share

- 2022-12: HKD 14.84 per share

- 2023-01: HKD 16.04 per share

- 2023-02: HKD 14.10 per share

- 2023-03: HKD 13.64 per share

- 2023-04: HKD 14.28 per share

- 2023-05: HKD 12.96 per share

- 2023-06: HKD 12.60 per share

- 2023-07: HKD 12.60 per share

- 2023-08: HKD 10.20 per share

- 2023-09: HKD 10.66 per share

- 2023-10: HKD 14.74 per share

- 2023-11: HKD 15.82 per share

- 2023-12: HKD 15.76 per share

- 2024-01: HKD 11.72 per share

- 2024-02: HKD 13.80 per share

- 2024-03: HKD 15.48 per share

- 2024-04: HKD 17.40 per share

- 2024-05: HKD 16.06 per share

- 2024-06: HKD 16.32 per share

- 2024-07: HKD 17.08 per share

- 2024-08: HKD 19.96 per share

- 2024-09: HKD 20.95 per share

- 2024-10: HKD 18.14 per share

- 2024-11: HKD 19.30 per share

- 2024-12: HKD 17.28 per share

- 2025-01: HKD 17.88 per share

- 2025-02: HKD 18.02 per share

- 2025-03: HKD 24.50 per share

- 2025-04: HKD 24.10 per share

- 2025-05: HKD 25.85 per share

- 2025-06: HKD 29.75 per share

- 2025-07: HKD 35.35 per share

- 2025-08: HKD 36.02 per share

- 2025-09: HKD 36.06 per share

- 2025-10: HKD 35.64 per share

- 2025-11: HKD 40.22 per share

- 2025-12: HKD 36.08 per share

- 2026-01: HKD 38.60 per share

- 2026-02: HKD 34.96 per share

- 2026-03: HKD 35.48 per share

- 2026-04: HKD 37.10 per share

- 2026-05: HKD 31.44 per share

- 2026-06: HKD 29.62 per share

- 2026-07: HKD 32.18 per share

- 2026-08: HKD 35.34 per share

- 2026-09: HKD 35.30 per share

- 2026-10: HKD 31.38 per share

## Annual estimated value (HKD per share)

- FY2023: low HKD 10.64 per share, central HKD 11.45 per share, high HKD 12.52 per share

- FY2024: low HKD 11.93 per share, central HKD 12.95 per share, high HKD 14.30 per share

- FY2025: low HKD 16.54 per share, central HKD 17.97 per share, high HKD 19.89 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

## 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.