Sinopharm Group Co (1099) AI Stock Analysis

• Market Cap: $59.41B
• Dividend Yield: 3.82%
• Average Volume (3M): 5.36M
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.79
• Revenue Growth: -3.94%
• EPS Growth: -23.48%
• Country: HK
• Employees: 108,217
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Distribution
• EPS (TTM): 0.51
• Shares Outstanding: 1,341,810,800
• 10 Day Avg. Volume: 4,516,060
• 30 Day Avg. Volume: 5,362,555
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.51
• Price Target Upside: 11.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: HK$21.50 ▲(11.23% Upside)

Sinopharm Group Co's stock is well-positioned with strong technical indicators and attractive valuation metrics leading the positive assessment. Despite stable financial performance, the pressure on profit margins and variability in free cash flow present areas for improvement.

Positive Factors

Market Position

Continuous market share gains from industry consolidation could make Sinopharm remain the largest drug distributor in China and expand its market share significantly.

Operational Efficiency

A new policy allows medical institutes to apply for funds for payment to suppliers in advance, speeding up pharm distributor payments.

Negative Factors

Earnings Performance

1H24 earnings dropped by 10% y/y, below expectation.

Sinopharm Group Co Business Overview & Revenue Model

Company Description

Sinopharm Group Co., Ltd. (1099) is a leading healthcare company in China, primarily engaged in the distribution of pharmaceutical and healthcare products. The company operates across various sectors, including pharmaceutical distribution, retail pharmacy, and medical device distribution. Sinopharm is known for its comprehensive supply chain services, providing a wide range of pharmaceutical products, traditional Chinese medicine, and healthcare equipment to hospitals, medical institutions, and pharmacies across China.

How the Company Makes Money

Sinopharm Group Co. makes money primarily through its extensive pharmaceutical distribution network, which is one of the largest in China. The company generates revenue by purchasing pharmaceutical products from manufacturers and distributing them to hospitals, clinics, and pharmacies. Retail pharmacy operations also contribute significantly to its revenue stream, with a vast network of retail outlets providing direct sales to consumers. Additionally, Sinopharm earns income from the distribution of medical devices and healthcare equipment. Strategic partnerships with international pharmaceutical companies further enhance its product offerings and market reach, contributing to its earnings. The company's large-scale operations and efficient supply chain management play crucial roles in maintaining profitability and revenue growth.

Sinopharm Group Co Financial Statement Overview

Summary

Sinopharm Group Co exhibits stable revenue growth with solid EBITDA margins, though profit margins are under pressure. The balance sheet shows a strong asset base but potential risks with liabilities. Cash flows are generally healthy, but free cash flow variability suggests some strategic adjustments are needed.

Income Statement

The company has shown stable revenue growth over the years, with the revenue growing from 425,272,726,000 in 2019 to 584,507,930,000 in 2024. The gross profit margin has slightly decreased over time, indicating a squeeze on profit margins. The net profit margin has also seen a decline, suggesting that the company is facing increased costs or lower operational efficiency. However, EBITDA margins remain relatively stable, indicating solid core operational performance.

Balance Sheet

The balance sheet shows a high level of total assets and stockholders' equity, reflecting strong capital structure. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. However, the equity ratio has remained somewhat flat, indicating potential risks if liabilities increase sharply. Return on equity has shown variability, which might point to inconsistent profitability.

Cash Flow

Cash flow analysis reveals that the company has had a consistent operating cash flow, although there is a noticeable decline in free cash flow from 2023 to 2024. The operating cash flow to net income ratio shows the company is generating a healthy amount of cash relative to its net income. However, free cash flow growth has been inconsistent, which could indicate challenges in managing capital expenditures or financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	584.51B	596.57B	552.15B	521.05B	456.41B
Gross Profit	44.26B	48.51B	47.43B	44.05B	40.32B
EBITDA	20.17B	26.90B	26.25B	24.68B	22.62B
Net Income	7.05B	9.05B	14.35B	13.06B	12.10B
Balance Sheet
Total Assets	392.83B	383.39B	364.78B	335.41B	311.24B
Cash, Cash Equivalents and Short-Term Investments	54.31B	63.81B	55.22B	43.54B	50.22B
Total Debt	76.39B	73.78B	69.59B	68.37B	68.53B
Total Liabilities	266.14B	263.08B	254.71B	235.76B	221.29B
Stockholders Equity	78.88B	74.58B	68.07B	61.89B	56.36B
Cash Flow
Free Cash Flow	9.58B	14.84B	18.55B	7.05B	9.07B
Operating Cash Flow	11.55B	17.17B	20.96B	9.31B	11.15B
Investing Cash Flow	-3.75B	-944.53M	-3.59B	-1.27B	-2.20B
Financing Cash Flow	-17.29B	-7.64B	-5.69B	-14.69B	2.03B

Sinopharm Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1099, the sentiment is Positive. The current price of 19.33 is above the 20-day moving average (MA) of 19.05, above the 50-day MA of 18.71, and above the 200-day MA of 18.87, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 57.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1099.

Sinopharm Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1099	78 Outperform	$59.41B	7.78	9.19%	3.82%	-3.94%	-23.48%
1931	67 Neutral	HK$15.00B	48.99	7.40%	0.99%	0.67%	-1.75%
2607	66 Neutral	$69.48B	9.95	6.08%	2.52%	3.27%	12.87%
Sector *	47 Neutral	C$212.69M	-1.55	-24.82%	3.11%	19.75%	0.14%

Sinopharm Group Co Corporate Events

Sinopharm Group Co. Ltd. Reports Successful AGM and Shareholder Meetings

Sinopharm Group Co. Ltd. announced the successful conclusion of its 2024 annual general meeting and related shareholder meetings held on June 12, 2025. All proposed resolutions, including the approval of the company’s financial statements, profit distribution plan, and final dividend for 2024, were passed with significant majority votes. This outcome reflects strong shareholder support and positions the company favorably for continued growth and stability in the pharmaceutical sector.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces Board Composition and Committee Roles

Sinopharm Group Co. Ltd. has announced the composition of its board of directors and the roles and functions of each member. The board includes non-executive, executive, and independent non-executive directors, with Zhao Bingxiang serving as the Chairman. The announcement also details the membership of five board committees, highlighting the company’s commitment to governance and strategic oversight.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Updates Final Dividend Distribution for 2024

Sinopharm Group Co. Ltd. has announced an update to its final dividend distribution for the financial year ending December 31, 2024. The dividend is set at RMB 0.68 per share, equivalent to HKD 0.739 per share, with an exchange rate of RMB 1 to HKD 1.087. The ex-dividend date is June 16, 2025, and the payment date is August 12, 2025. The announcement includes details on withholding tax rates for non-resident enterprise and individual shareholders, as well as for Mainland individual investors through the Shanghai and Shenzhen Hong Kong Stock Connect. This update reflects Sinopharm’s commitment to shareholder returns and may influence investor sentiment and market positioning.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Announces Resignation of Employee Representative Supervisor

Sinopharm Group Co. Ltd. announced the resignation of Mr. Liu Hongbing as an employee representative supervisor, effective from June 10, 2025. The company expressed gratitude for his contributions, and Mr. Liu confirmed no disagreements with the board, indicating a smooth transition without impact on stakeholders.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces Leadership Changes

Sinopharm Group Co. Ltd. announced the resignation of Mr. Hu Ligang from his position as a non-executive director, effective immediately, with his subsequent appointment as vice president of the company. The board expressed gratitude for Mr. Hu’s contributions to the company’s strategic development. Simultaneously, the board proposed the appointment of Mr. Ma Yue as a non-executive director, pending shareholder approval. Mr. Ma, a senior economist and practicing pharmacist, brings extensive experience from his tenure at China National Pharmaceutical Group Co., Ltd.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces Board Composition and Committee Roles

Sinopharm Group Co. Ltd. has announced the composition of its board of directors, detailing the roles and functions of each member. The announcement outlines the structure of five board committees, highlighting the leadership and membership roles of the directors, which may impact the company’s governance and strategic direction.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces 2024 AGM with Key Resolutions

Sinopharm Group Co. Ltd. has announced its annual general meeting for 2024, scheduled for June 12, 2025, in Shanghai, China. Key agenda items include the approval of financial statements, profit distribution, director and supervisor remuneration, auditor appointments, and the delegation of guarantee provisions for subsidiaries. The meeting will also consider the appointment of new directors and the issuance of new shares, reflecting the company’s strategic focus on strengthening its governance and financial structure.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces Share Repurchase Mandate

Sinopharm Group Co. Ltd. has announced a special resolution for a shareholders’ class meeting to grant the Board a mandate to repurchase up to 10% of its H Shares. This move is aimed at enhancing capital management flexibility and potentially stabilizing the company’s share price, reflecting a strategic decision to optimize shareholder value.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Proposes H Share Repurchase Mandate

Sinopharm Group Co. Ltd. has announced a domestic shareholders’ class meeting to discuss a special resolution granting the Board a mandate to repurchase up to 10% of its H Shares. This move is aimed at enhancing capital management flexibility and potentially improving shareholder value, reflecting the company’s strategic focus on optimizing its capital structure.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Group Announces Board of Directors and Committee Roles

Sinopharm Group Co. Ltd. announced the composition of its board of directors, detailing the roles and functions of each member. The announcement highlights the company’s governance structure, with a focus on the various board committees and their respective members. This update may impact the company’s strategic direction and governance, influencing stakeholders’ perceptions and the company’s industry positioning.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

Sinopharm Announces Board Changes with New Director Appointment

Sinopharm Group Co. Ltd. announced the resignation of Mr. Li Dongjiu as a non-executive director due to retirement, effective immediately. The board expressed gratitude for his contributions to the company’s development and governance. Concurrently, the board proposed the appointment of Mr. Chen Yuqing as a new non-executive director, subject to shareholder approval. Mr. Chen, who holds significant experience in human resources and management positions at Fosun Pharma, is expected to enhance Sinopharm’s strategic direction and governance.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$29.30 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.