Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 29 Jul 2026
600535.SS· Healthcare
Tasly Pharmaceutical Group
Tasly Pharmaceutical's low ROIC and inconsistent profitability raise significant concerns about its long-term durability and competitive position.
Buffett fit
Weak fit
Owner
40
Durability
37
Management
74
Price
52
Score updated 5 Oct 2026 · analysis from 29 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Tasly outright, I would be concerned about the declining revenue and the inability to achieve consistent profitability, as evidenced by a 5-year EPS decline of -11.11%.
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The 10-year outlook for Tasly is uncertain given its inconsistent profitability, with at least one loss year in the past five.
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Management has maintained a conservative debt profile with a debt/equity ratio of 0.12 and an interest coverage of 42.4, indicating strong financial health.
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The current earnings yield of 5.13% is below the 8-10% threshold I seek for a , indicating that the stock is not attractively priced.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 17.7% ranks in the top quintile for the healthcare sector.
- 2Strong financial health with a current ratio of 3.57, indicating excellent liquidity.
- 3Low debt/equity ratio of 0.12 shows minimal and strong interest coverage of 42.4.
- 4 of $1.04B indicates some ability to generate cash despite revenue challenges.
Concerns
5- 1 of 7.5% is below the sector top-quintile cutoff of 10.7%, indicating weak capital efficiency.
- 25-year average of 4.9% suggests ongoing challenges in generating returns on invested capital.
- 3Revenue CAGR of -1.57% raises concerns about growth potential and market position.
- 4 of 66.9% is below the sector's top-quintile threshold of 77.9%, indicating pricing pressure.
Price history
$14.00-0.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Tasly Pharmaceutical develops and sells a range of pharmaceuticals, including prescription drugs and over-the-counter products, generating $8.24B in revenue. However, the company has faced a revenue decline of -1.57% CAGR over the last five years, raising concerns about its growth trajectory. The unit economics are challenged by low and a lack of consistent profitability.
How this analysis has moved
The call has held across 2 reviews.
Sep 27, 2026 → Oct 4, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
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