A specialty pharmaceutical developer with reported margins of 83% and a return on equity of 45% is undermined by 16% revenue contraction, a Piotroski F-Score of just 1 out of 9, a hard-blocked technical downtrend, and a forward P/E that implies a near-complete collapse in near-term earnings — making this a situation where patience is warranted until the fundamental and technical picture improves materially, despite a large stated upside to analyst consensus.
Thesis pillars
- Revenue Contracting 16pct→Stable
- Quality Below Floor Piotroski 1 Of 9→Stable
- Confirmed Downtrend Hard Technical Block→Stable
- +1 more pillar — see the Why tab for full reasoning
HUTCHMED (China) Limited (HCM) Stock Analysis
Recovery setup
Healthcare · Drug Manufacturers - Specialty & Generic
Sell if holding. Engine safety override at $12.20: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.8:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.57; Below-average business quality; Negative price momentum.
HUTCHMED (China) Limited, together with its subsidiaries, discovers, develops, and commercializes targeted therapeutics and immunotherapies to treat cancer and immunological diseases in Hong Kong, the United States, and internationally. It provides Fruquintinib, a selective and... Read more
Sell if holding. Engine safety override at $12.20: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.8:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.57; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 67. Score 4.7/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 201d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
Recent developments
updated 2026-08-15Recent Developments — HUTCHMED (China) Limited
Latest news
- NEWS Price to earnings forward of HCM III Acquisition Corp. – NASDAQ:HCMA - TradingView — TradingView neutral
- NEWS HCM|HUTCHMED (China) Ltd|Price:11.140|Chg%:+0.130 - TradingKey — TradingKey neutral
- NEWS HCM Maintained by Goldman Sachs -- Price Target Lowered to $14.0 - GuruFocus — GuruFocus negative
- NEWS Goldman Sachs Maintains Hutchmed (China)(HCM.US) With Hold Rating, Cuts Target Price to $14 - Moomoo — Moomoo neutral
- NEWS HUTCHMED (HCM) Projected to Release Earnings on Thursday - MarketBeat — MarketBeat neutral
Generated 2026-08-15T09:37:16Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $12.20: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.8:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.57; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 67. Prior stop was $11.56. Score 4.7/10, moderate confidence.
Take-profit target: $18.26 (+49.7% upside). Prior stop was $11.56. Stop-loss: $11.56.
Quality below floor (2.5 < 4.0).
HUTCHMED (China) Limited trades at a P/E of 121.6 (forward 53.1). TrendMatrix value score: 5.8/10. Verdict: Sell.
26 analysts cover HCM with a consensus score of 4.2/5. Average price target: $21.
What does HUTCHMED (China) Limited do?HUTCHMED (China) Limited, together with its subsidiaries, discovers, develops, and commercializes targeted therapeutics...
HUTCHMED (China) Limited, together with its subsidiaries, discovers, develops, and commercializes targeted therapeutics and immunotherapies to treat cancer and immunological diseases in Hong Kong, the United States, and internationally. It provides Fruquintinib, a selective and potent oral inhibitor of vascular endothelial growth factor receptors for treatment of colorectal cancer (CRC), breast cancer, gastric cancer (GC), microsatellite stable-CRC endometrial cancer (EMC), non-small cell lung cancer (NSCLC), renal cell carcinoma (RCC), endometrial cancer (EMC); and Savolitinib, a potent and selective inhibitor of mesenchymal-epithelial transition receptor to treat NSCLC, papillary RCC, and GC. It also develops Surufatinib to treat pancreatic neuroendocrine tumor (NET), non pancreatic NET, and pancreatic ductal adenocarcinoma; Sovleplenib, to treat immune thrombocytopenic purpura and warm autoimmune hemolytic anemia; and Tazemetostat, a treatment for epithelioid sarcoma and follicular lymphoma; Fanregratinib that treats intrahepatic cholangiocarcinoma; and Ranosidenib, a novel dual-inhibitor of dehydrogenase-1 and isocitrate dehydrogenase-2 enzymes to treat acute myeloid leukemia (AML). In addition, the company is developing HMPL-760, which is in phase I and II clinical trial to treat relapsed and/or refractory diffuse large B cell lymphoma, chronic lymphocytic leukemia, small lymphocytic lymphoma, and other B-NHL; HMPL-506 to treat Mixed-lineage leukemia-rearrange/rearrangement and nucleophosmin 1-mutantAML. It has collaboration agreements with AstraZeneca AB (publ), Lilly (Shanghai) Management Company Limited, Takeda, Inmagene Biopharmaceuticals Co. Ltd., Innovent Biologics Co., Inc., and Epizyme, Inc., and Epizyme, Inc. The company was formerly known as Hutchison China MediTech Limited and changed its name to HUTCHMED (China) Limited in May 2021. HUTCHMED (China) Limited was incorporated in 2000 and is headquartered in Hong Kong, Hong Kong.