Analysis of Furui Pharmaceutical's H-Share Listing Plan & Its Impact on A-Share Valuation

Based on the analysis of Furui Pharmaceutical, I will provide an in-depth analysis of the potential impact of its H-share listing plan on A-share valuation and investors.

: As of December 17, 2025, Furui Pharmaceutical’s A-share closing price was 70.98 yuan, with a high price-to-earnings ratio of 151.02 times and a market capitalization of 18.81 billion USD [0]. The stock has performed brilliantly this year, with an increase of 132.19% year-to-date and an even higher increase of 117.86% in the past six months [0].

From the chart, it can be seen that Furui Pharmaceutical’s stock price experienced a significant increase in 2025, rising from 31.50 yuan at the beginning of the year to a high of 90.68 yuan, and currently corrected back to 70.98 yuan.

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• Current A-share valuation is significantly high (P/E 151.02 times), far exceeding the industry average
• The Hong Kong stock market usually adopts international valuation standards, with relatively rational valuations
• After H-share listing, a price discovery mechanism may form to help A-share valuation return to a reasonable range

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• As an international financial center, Hong Kong stocks attract more overseas institutional investors
• Differences in valuation methods and risk preferences among investors in different markets will affect pricing
• In the long run, stock prices in the two markets may tend to converge, reducing valuation deviations

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• H-share listing can attract overseas capital, especially international funds focusing on China’s medical and health sector
• Currently, the healthcare sector as a whole performs steadily, rising 0.31% on the day [0]
• Participation of international investors is expected to improve corporate governance standards

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• Shift from the current A-share retail-dominated structure to an increase in the proportion of institutional investors
• The Hong Kong stock market has a high proportion of institutional investors, with more rational and professional investment decisions

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• The financing cost in the Hong Kong market is relatively low, with a more favorable interest rate environment
• Equity financing can be carried out through the H-share market to avoid over-reliance on debt
• According to financial analysis, the company currently has low debt risk, providing space for further financing [0]

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• Capital operations can be carried out between the two markets to optimize the capital structure
• Facilitate possible mergers and acquisitions in the future to enhance industrial integration capabilities

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• Listing in Hong Kong stocks enhances the company’s visibility among international investors
• Conducive to business expansion and international cooperation opportunities
• The international development trend of the medical and health industry is in line with the company’s strategy

:

• In the short term, it may have a positive impact on A-shares due to expectations of H-share issuance
• Long-term valuation is more reasonable, reducing bubble risks
• The company’s fundamentals are stable, with an operating profit margin of 19.84% in 2024 [0]

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• There may be price differences between A-shares and H-shares, providing opportunities for arbitrage transactions
• Need to pay attention to differences in market mechanisms between the two places and exchange rate risks

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• H-share issuance will dilute the equity of existing shareholders
• Need to pay attention to the impact of issuance scale and pricing on earnings per share

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• Dual listing may increase stock price volatility
• Need to adapt to different market trading rules and investor behaviors

From the current market environment, the healthcare sector as a whole performs steadily, rising 0.31% on the day [0]. Although the technology sector has回调 (-0.49%), the medical and health sector is still favored by funds as a defensive sector.

The Hong Kong IPO market was relatively active in 2025, and “A+H” dual listing has become a choice for many high-quality enterprises. From the search results, it can be seen that emerging industries such as smart cars are also actively seeking to list in Hong Kong [1].

:

• Pay close attention to the progress of H-share issuance and market expectations
• Note the potential impact of issuance pricing on A-shares
• Consider adjusting positions appropriately during the issuance window period

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• Focus on the continuous improvement of the company’s fundamentals
• Evaluate the improvement of internationalization程度 after dual listing
• Consider the linkage effect between A-shares and H-shares

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• Can pay attention to H-share issuance pricing and look for relatively undervalued opportunities
• Study the price difference between the two markets and look for arbitrage opportunities
• Consider gradually building positions during the valuation repair period

Furui Pharmaceutical’s H-share listing plan is generally positive for A-share valuation and investors:

1. Valuation Reassessment
   : Helps the currently high-valued A-shares return to a reasonable range and provides a more fair pricing benchmark

2. Liquidity Enhancement
   : Introduces international capital, optimizes investor structure, and improves market efficiency

3. Strategic Value
   : Lays the foundation for the company’s international development and enhances global competitiveness

4. Investment Opportunities
   : Provides investors with more diversified investment choices and strategic space

It should be noted that during the H-share issuance process, there may be dilution effects and market volatility risks. Investors should comprehensively consider the company’s fundamentals, valuation level, and market environment to make rational investment decisions.

[0] Jinling API Data
[1] Yahoo Finance - “排隊湧入港交所為何內地智能汽車企業爭相赴港上市？” (https://hk.finance.yahoo.com/news/從年初禾賽到年底文遠知行與小馬智行-為何陸智能汽車廠爭相赴港上市-103007235.html)