Shineway Profit Rises Despite Revenue Slump as TCM Sector Resets

China Shineway Pharmaceutical Group Limited ( (HK:2877) ) has issued an update.

China Shineway Pharmaceutical Group reported 2025 revenue of RMB3.14 billion, down 17.0% amid a sector-wide downturn, with gross margin easing to 72.3%, yet profit rising 13.1% to RMB949.9 million and earnings per share climbing to RMB1.26. The board declared a 2026 first interim dividend of RMB0.43 per share, underscoring confidence in cash generation despite weaker top-line performance.

Management said the final year of its 14th Five-Year Plan coincided with deep structural adjustment in the TCM industry, driven by medical insurance cost controls, centralized procurement, shrinking demand and higher production costs, which weighed on sales and margins. Even so, Shineway secured bids for eight key proprietary Chinese medicines in a national procurement alliance and, despite a 14.4% revenue decline in its TCM formula granules segment, believes its expanded tender coverage, cost controls and enhanced regional competitiveness will position the business to regain growth as the market stabilizes.

The most recent analyst rating on (HK:2877) stock is a Buy with a HK$11.00 price target. To see the full list of analyst forecasts on China Shineway Pharmaceutical Group Limited stock, see the HK:2877 Stock Forecast page.

More about China Shineway Pharmaceutical Group Limited

China Shineway Pharmaceutical Group Limited is a Cayman Islands–incorporated producer of Traditional Chinese Medicine (TCM), focusing on proprietary Chinese medicines and TCM formula granules. Its products target major therapeutic areas including cardio-cerebrovascular, respiratory and digestive diseases, with strong exposure to hospital and retail pharmacy channels across mainland China.

Average Trading Volume: 967,293

Technical Sentiment Signal: Buy

Current Market Cap: HK$6.65B

For a thorough assessment of 2877 stock, go to TipRanks’ Stock Analysis page.