BGM Group Ltd. (BGM)

BGM Group Ltd. is a Chinese manufacturer and distributor of active pharmaceutical ingredients (APIs), traditional Chinese medicine derivatives (TCMD), and related by-products. The company's diverse product portfolio includes pharmaceuticals, fertilizers, and even sausage casings.

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Company Overview

CEOChen Xin
Employees298
HeadquartersChengdu, CN
IPO Year2003

BGM Group Ltd. is a China-based specialty pharmaceutical and agricultural company leveraging traditional Chinese medicine and modern APIs, offering a diversified product portfolio and targeting growth through strategic market expansion and innovative product development in both healthcare and agriculture.

Investment Thesis

BGM Group Ltd. presents a unique investment opportunity due to its diversified product portfolio spanning pharmaceuticals, traditional Chinese medicine, and agricultural products. While the company currently has a negative P/E ratio of -5.71 and a negative profit margin of -5.7%, its strategic positioning in both healthcare and agriculture offers significant growth potential. Key value drivers include expanding market share within China's growing pharmaceutical and agricultural sectors, particularly in the demand for traditional Chinese medicine. Upcoming catalysts include potential partnerships to expand distribution networks and new product launches in the fertilizer segment. An investment in BGM is a bet on the growth of both the Chinese healthcare and agricultural markets, with the company's diversified product range acting as a buffer against sector-specific downturns.

Key Highlights

  • Market capitalization of $0.23 billion, indicating a relatively small but potentially high-growth company.
  • Negative P/E ratio of -5.71, suggesting the company is currently unprofitable but may have future earnings potential.
  • Gross margin of 16.4%, reflecting the company's ability to generate revenue after deducting the cost of goods sold.
  • Beta of 1.46, indicating the stock is more volatile than the overall market.
  • No dividend yield, suggesting the company is reinvesting its earnings for growth rather than distributing them to shareholders.

Competitors

Strengths

  • Diversified product portfolio across healthcare and agriculture.
  • Expertise in traditional Chinese medicine.
  • Established presence in the Chinese market.
  • Manufacturing capabilities for APIs and TCMD products.

Weaknesses

  • Negative profit margins and P/E ratio.
  • Relatively small market capitalization.
  • Limited geographic diversification.
  • Potential dependence on Chinese regulatory environment.

Catalysts

  • Upcoming: Potential partnerships with established distributors to expand market reach in the next 12-18 months.
  • Upcoming: Launch of new organic fertilizer products in the next growing season.
  • Ongoing: Increasing demand for traditional Chinese medicine in China.
  • Ongoing: Government support for sustainable agriculture and organic fertilizers.

Risks

  • Potential: Negative profit margins may persist if cost control measures are not effective.
  • Potential: Dependence on the Chinese market exposes the company to regulatory and economic risks.
  • Potential: Intense competition could limit market share gains.
  • Ongoing: Fluctuations in raw material prices could impact profitability.
  • Ongoing: Product liability claims could arise from the use of pharmaceutical products.

Growth Opportunities

  • Expansion of Traditional Chinese Medicine (TCMD) Product Line: The demand for TCMD is increasing in China, driven by cultural preferences and government support. BGM can capitalize on this trend by expanding its TCMD product line and improving its distribution channels. The Chinese TCMD market is estimated to reach $60 billion by 2028, offering a substantial growth opportunity for BGM. The company's existing expertise in TCMD production gives it a competitive advantage.
  • Strategic Partnerships for Distribution: BGM can enhance its market reach by forming strategic partnerships with established pharmaceutical distributors and agricultural retailers. This would allow the company to leverage existing distribution networks and access a wider customer base. The timeline for establishing such partnerships is estimated at 12-18 months, with potential revenue impact within the following year. This strategy would reduce reliance on direct sales and improve overall efficiency.
  • New Product Development in Organic Fertilizers: The Chinese government is promoting the use of organic fertilizers to improve soil health and reduce reliance on chemical fertilizers. BGM can invest in research and development to create new and innovative organic fertilizer products. The organic fertilizer market in China is projected to grow at a CAGR of 10% over the next five years, presenting a significant opportunity for BGM.
  • International Market Expansion: While currently focused on the Chinese market, BGM can explore opportunities to expand its sales to other countries with a demand for traditional Chinese medicine and organic fertilizers. Southeast Asia and Africa are potential target markets. This expansion could be phased over 3-5 years, starting with market research and pilot programs. Success would diversify revenue streams and reduce dependence on the domestic market.
  • Vertical Integration of API Manufacturing: BGM can improve its profitability and supply chain security by vertically integrating its API manufacturing operations. This would reduce reliance on external suppliers and allow the company to control the quality and cost of its key ingredients. The timeline for establishing in-house API manufacturing capabilities is estimated at 2-3 years, requiring significant capital investment. This move would enhance BGM's competitive position and improve its gross margins.

Opportunities

  • Expansion of TCMD product line to meet growing demand.
  • Strategic partnerships to enhance distribution network.
  • New product development in organic fertilizers.
  • International market expansion to Southeast Asia and Africa.

Threats

  • Intense competition in the pharmaceutical and agricultural industries.
  • Changes in Chinese regulations affecting the pharmaceutical or agricultural sectors.
  • Fluctuations in raw material prices.
  • Potential product liability claims.

Competitive Advantages

  • Diversified product portfolio reduces reliance on any single product or market.
  • Established presence in the Chinese pharmaceutical and agricultural markets.
  • Expertise in traditional Chinese medicine provides a competitive advantage.
  • Vertically integrated operations for some product lines, improving cost control.

About

BGM Group Ltd., formerly Qilian International Holding Group Limited, was incorporated in 2019 and is headquartered in Chengdu, China. The company operates within the healthcare sector, focusing on the manufacturing and distribution of active pharmaceutical ingredients (APIs), traditional Chinese medicine derivatives (TCMD), and other related products. BGM's product portfolio is diverse, encompassing pharmaceuticals like Gan Di Xin (an antitussive and expectorant medicine) and Qilian Shan oxytetracycline tablets used in both veterinary and human medicine. They also produce Qilian Shan Licorice Extract and liquid extract, essential ingredients for pharmaceutical companies manufacturing licorice-based medications. Beyond pharmaceuticals, BGM produces TCMD products like Ahan antibacterial paste, heparin products for cardiovascular and cerebrovascular disease medications, and even Zhu Xiaochang sausage casings, a natural food product. The company also caters to the agricultural sector with Xiongguan organic and organic-inorganic compound fertilizers designed to improve crop yield and soil quality. This diversification strategy aims to capitalize on both the growing demand for healthcare products and the increasing focus on sustainable agriculture in China. BGM changed its name in October 2024, signaling a new phase of growth and strategic direction.

What They Do

  • Manufactures active pharmaceutical ingredients (APIs).
  • Produces traditional Chinese medicine derivatives (TCMD).
  • Offers licorice-based pharmaceutical products.
  • Manufactures oxytetracycline tablets for human and veterinary use.
  • Produces heparin products for cardiovascular and cerebrovascular medications.
  • Manufactures organic and organic-inorganic compound fertilizers.
  • Produces natural sausage casings.

Business Model

  • Manufactures and sells APIs and TCMD products to pharmaceutical companies.
  • Sells pharmaceutical products directly to consumers and healthcare providers.
  • Sells organic fertilizers to farmers and agricultural businesses.
  • Generates revenue through the sale of sausage casings.

Industry Context

BGM Group Ltd. operates in the Drug Manufacturers - Specialty & Generic industry, which is experiencing growth driven by increasing demand for affordable medicines and agricultural products in China. The market is competitive, with players like ANIP, AVDL, CLOV, EWTX, and GPCR vying for market share. BGM's focus on traditional Chinese medicine derivatives and organic fertilizers provides a niche market position, potentially differentiating it from competitors primarily focused on generic pharmaceuticals. The Chinese government's support for traditional medicine and sustainable agriculture could further benefit BGM's growth prospects.

Key Customers

  • Pharmaceutical companies that use BGM's APIs and TCMD products.
  • Healthcare providers who prescribe BGM's pharmaceutical products.
  • Consumers who purchase BGM's pharmaceutical products.
  • Farmers and agricultural businesses that use BGM's organic fertilizers.
AI Confidence: 72% Updated: 2/8/2026

Financials

Chart & Info

Price Chart

BGM Group Ltd. (BGM) stock price: $3.48 (-0.10, -2.79%)

Why Bull

  • •Recent insider buying suggests confidence in BGM's future, indicating that those closest to the company believe in its potential.
  • •Community sentiment has shifted positively with discussions around BGM's recent product innovations, highlighting a strong market interest.
  • •Positive media coverage has emerged around BGM's sustainability initiatives, resonating well with socially conscious investors.
  • •Analysts have noted BGM's strategic partnerships, which could enhance market reach and operational efficiency moving forward.

Why Bear

  • •Some investors express concerns about BGM's competitive positioning in a rapidly evolving market, questioning its long-term viability.
  • •Recent community discussions reveal skepticism about the company's ability to scale production effectively, which could hinder growth.
  • •Market sentiment has been cautious due to broader economic uncertainties, impacting investor confidence in BGM's future prospects.
  • •Critics point to a lack of clear communication from BGM regarding its strategic roadmap, leading to uncertainty among stakeholders.

Latest News

Technical Analysis

RSI(14)
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MACD
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Volume
8,787

Rationale

AI-generated technical analysis for BGM including trend direction, momentum, and pattern recognition.

What to Watch

Key support and resistance levels, volume signals, and upcoming events.

Risk Management

Position sizing, stop-loss levels, and risk-reward assessment.

Community

Discussion

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Sentiment

Community sentiment and discussion activity for BGM.

Make a Prediction

Set your price target for BGM Group Ltd. (BGM), choose a timeframe, and track your prediction accuracy.

Current price: $3.48

Analyst Consensus

Consensus Rating

Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for BGM.

Price Targets

Wall Street price target analysis for BGM.

Insider Flow (30d)

No insider trades in the last 30 days.

MoonshotScore

43.5/100

Score Factors

  • Revenue Growth 5/100

    Revenue growth data is currently unavailable for this company.

  • Gross Margin 3/100

    Gross margin of 2.9% is below average, suggesting thin margins and potential pricing pressure.

  • Operating Leverage 4/100

    Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.

  • Cash Runway 5/100

    Cash position data is currently unavailable for this company.

  • R&D Intensity 5/100

    R&D spending data is currently unavailable for this company.

  • Insider Activity 6/100

    No significant insider buying or selling recently, which is neutral for the stock outlook.

  • Short Interest 5/100

    Float and volume data unavailable for liquidity analysis.

  • Price Momentum 0/100

    No bullish technical signals detected. The stock lacks upward price momentum currently.

  • News Sentiment 5/100

    No sentiment data available

What does this score mean?

The MoonshotScore rates BGM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.

Frequently Asked Questions

What does BGM Group Ltd. do?

BGM Group Ltd. is a diversified Chinese company that manufactures and distributes a range of products, including active pharmaceutical ingredients (APIs), traditional Chinese medicine derivatives (TCMD), organic fertilizers, and even sausage casings. Their core business revolves around supplying pharmaceutical companies with essential ingredients and providing healthcare solutions directly to consumers. Additionally, they cater to the agricultural sector with organic fertilizers designed to improve crop yields and promote sustainable farming practices, demonstrating a broad approach to serving both human and environmental needs.

Is BGM stock a good buy?

BGM stock presents a speculative investment opportunity. While the company currently exhibits negative profitability metrics, its diversified product portfolio and strategic positioning in the growing Chinese healthcare and agricultural markets offer potential for future growth. Investors should carefully consider the company's financial performance, competitive landscape, and regulatory risks before investing. The potential for expansion in the TCMD and organic fertilizer markets, coupled with strategic partnerships, could drive future value, but these catalysts are not guaranteed.

What are the main risks for BGM?

BGM faces several key risks, including its current negative profit margins, which could hinder its ability to invest in future growth. The company's reliance on the Chinese market exposes it to regulatory changes and economic fluctuations. Intense competition in both the pharmaceutical and agricultural industries could limit its market share gains. Furthermore, fluctuations in raw material prices and potential product liability claims pose ongoing threats to its profitability and reputation. These risks require careful monitoring and proactive mitigation strategies.

Is BGM a good stock to buy?

Whether BGM is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.

What is the BGM MoonshotScore?

The MoonshotScore for BGM is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.

How often is BGM data updated?

BGM stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to BGM is aggregated continuously from premium financial news sources throughout the day.

What are the growth catalysts for BGM?

Growth catalysts for BGM Group Ltd. (BGM) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes BGM Group Ltd.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.

Who are BGM's main competitors?

BGM Group Ltd. (BGM) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether BGM has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.

What do analysts say about BGM?

Wall Street analyst coverage for BGM includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.

What is BGM's market cap?

Market capitalization (market cap) for BGM is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows BGM's current market cap alongside enterprise value and other valuation metrics.

How has BGM stock performed recently?

BGM's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing BGM's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.

What are the risks of investing in BGM?

Key risk categories for BGM include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures BGM's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.

Are insiders buying or selling BGM?

Insider trading activity for BGM tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.

Is BGM a good stock for beginners?

BGM Group Ltd. (BGM) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.

How risky is BGM for first-time investors?

Every stock carries risk, including BGM Group Ltd. (BGM). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like BGM.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

AI Analysis Notes
  • Financial data is limited and may not reflect the most current performance.
  • The Chinese regulatory environment can be unpredictable and may impact the company's operations.
  • Market data for specific product segments may be limited or unavailable.
Data Sources
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