Is HUTCHMED (China) Ltd (HCM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 3.6% / 30% | 33.4% / 30% | 6.2% / 30% | 6.36% / 5% | ✗ NOT HALAL |
| DJIM | 3.6% / 33% | 33.4% / 33% | 6.2% / 33% | 6.36% / 5% | ✗ NOT HALAL |
| MSCI | 7.0% / 33% | 65.6% / 33% | 12.2% / 33% | 6.36% / 5% | ✗ NOT HALAL |
| S&P | 3.6% / 33% | 33.4% / 33% | 6.2% / 33% | 6.36% / 5% | ✗ NOT HALAL |
| FTSE | 7.0% / 33% | 65.6% / 33% | 12.2% / 50% | 6.36% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 11.6% | |
| Operating Margin | -13.2% | |
| Net Margin | 83.3% | |
| Return on Equity (ROE) | 45.2% | |
| Return on Assets (ROA) | -1.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$65M |
| Free Cash Flow | -$89M |
| Total Debt | $98M |
| Debt-to-Equity | 7.8 |
| Current Ratio | 5.0 |
| Total Assets | $1.8B |
Price & Trading
| Last Close | $14.16 |
| 50-Day MA | $14.65 |
| 200-Day MA | $15.29 |
| Avg Volume | 35K |
| Beta | 0.5 |
|
52-Week Range
$11.51
| |
About HUTCHMED (China) Ltd (HCM)
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.
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Frequently Asked Questions
Is HUTCHMED (China) Ltd (HCM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HUTCHMED (China) Ltd is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is HUTCHMED (China) Ltd's debt ratio?
HUTCHMED (China) Ltd's debt ratio is 3.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 7.0%.
What are HUTCHMED (China) Ltd's key financial metrics?
HUTCHMED (China) Ltd has a market capitalization of $2.5B, trailing P/E ratio of 5.2, and revenue of $549M. The company maintains a gross margin of 11.6% and a net margin of 83.3%. Return on equity stands at 45.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.