Sinopharm Group Co (1099) AI Stock Analysis

• Market Cap: HK$63.54B
• Dividend Yield: 3.63%
• Average Volume (3M): 4.77M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.77
• Revenue Growth: -2.68%
• EPS Growth: -21.45%
• Country: HK
• Employees: 108,217
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.65
• Shares Outstanding: 1,341,810,800
• 10 Day Avg. Volume: 3,603,370
• 30 Day Avg. Volume: 4,771,924
• PEG Ratio: -0.40
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 6.52
• 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: HK$21.48
• Price Target Upside: 5.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.55
• Revenue Forecast (FY): HK$641.90B

• Rating: 72 Outperform
• Price Target: HK$21.00 ▲(3.55% Upside)

The stock's overall score is driven by a strong valuation, with a low P/E ratio and attractive dividend yield. Financial performance is stable, though there are concerns about profit margin pressures and free cash flow fluctuations. Technical analysis suggests strong momentum but warns of potential overbought conditions.

Positive Factors

Business Model Strength

Sinopharm's diversified revenue streams from distribution, manufacturing, and healthcare services provide resilience and growth potential.

Market Position

As a leading player in China's healthcare sector, Sinopharm benefits from a strong market position, enhancing its competitive advantage and growth prospects.

Distribution Network

Sinopharm's extensive distribution network supports efficient operations and cost advantages, contributing to sustained profitability and market reach.

Negative Factors

Profit Margin Pressure

Declining profit margins suggest rising costs or inefficiencies, which could impact long-term profitability if not addressed.

Free Cash Flow Fluctuations

Inconsistent free cash flow growth may indicate challenges in managing capital expenditures, affecting financial flexibility and investment capacity.

Revenue Growth Decline

A decline in revenue growth could signal market saturation or competitive pressures, potentially hindering future expansion and profitability.

Sinopharm Group Co Business Overview & Revenue Model

Company Description

Sinopharm Group Co., Ltd. is a leading healthcare and pharmaceutical enterprise based in China. The company operates primarily in the pharmaceutical distribution and retail sectors, providing a wide range of products including prescription and over-the-counter medications, medical devices, and healthcare services. Sinopharm is also involved in the research, development, and manufacturing of pharmaceuticals and vaccines, playing a critical role in the healthcare supply chain within China and internationally.

How the Company Makes Money

Sinopharm Group generates revenue through multiple key streams. The majority of its income comes from pharmaceutical distribution, where it serves as a wholesaler and retailer for a vast array of medications and health products. Additionally, the company has significant earnings from its manufacturing operations, producing a variety of pharmaceutical products, including vaccines and specialty medications. Sinopharm also benefits from partnerships with both domestic and international pharmaceutical companies, enhancing its product offerings and market reach. Furthermore, the company engages in healthcare services, including hospital management and logistics solutions, which contribute to its revenue. The company's scale and established distribution network allow it to leverage economies of scale, improving profit margins and supporting consistent revenue growth.

Sinopharm Group Co Financial Statement Overview

Summary

Sinopharm Group Co exhibits stable revenue growth and solid EBITDA margins, although profit margins have been under pressure. The balance sheet reflects a strong asset base, but the company should be cautious of rising liabilities. Cash flows are generally healthy, but fluctuations in free cash flow require attention. Overall, the company demonstrates a stable financial standing with some areas that may need strategic adjustments.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	575.82B	584.51B	596.57B	552.15B	521.05B	456.41B
Gross Profit	43.09B	44.26B	48.51B	47.43B	44.05B	40.32B
EBITDA	20.58B	20.17B	26.90B	26.25B	24.68B	22.62B
Net Income	6.80B	7.05B	9.05B	8.53B	7.76B	7.19B
Balance Sheet
Total Assets	420.17B	392.83B	383.39B	364.78B	335.41B	311.24B
Cash, Cash Equivalents and Short-Term Investments	47.16B	54.31B	63.81B	55.22B	43.54B	50.22B
Total Debt	93.29B	76.39B	73.78B	69.59B	68.37B	68.53B
Total Liabilities	290.70B	266.14B	263.08B	254.71B	235.76B	221.29B
Stockholders Equity	80.38B	78.88B	74.58B	68.07B	61.89B	56.36B
Cash Flow
Free Cash Flow	16.32B	9.58B	14.84B	18.55B	7.05B	9.07B
Operating Cash Flow	18.43B	11.55B	17.17B	20.96B	9.31B	11.15B
Investing Cash Flow	-3.24B	-3.75B	-944.53M	-3.59B	-1.27B	-2.20B
Financing Cash Flow	-23.26B	-17.29B	-7.64B	-5.69B	-14.69B	2.03B

Sinopharm Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.28
• 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 20.28 is below the 20-day moving average (MA) of 20.35, above the 50-day MA of 19.77, and above the 200-day MA of 18.75, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	72 Outperform	HK$63.54B	8.64	8.74%	3.63%	-2.68%	-21.45%
2607	71 Outperform	HK$66.53B	7.28	7.53%	2.67%	2.77%	39.24%
1931	60 Neutral	HK$6.47B	34.40	5.07%	2.30%	0.33%	-44.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sinopharm Group Co Corporate Events

Sinopharm Group Announces EGM to Appoint New Directors

Sinopharm Group Co. Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for December 19, 2025, in Shanghai, China. The meeting will address the appointment of new directors to the company’s board, including Mr. Jin Bin, Mr. Yang Binghua, Mr. Ma Yue, and Ms. Li Ying, with the board authorized to determine their remuneration. This move is expected to impact the company’s governance structure and potentially influence its strategic direction.

Sinopharm Group Announces Board Composition and Committee Roles

Sinopharm Group Co. Ltd. has announced the composition of its board of directors and the roles within its five board committees. The announcement provides details on the leadership structure, which includes a mix of non-executive, executive, and independent non-executive directors, highlighting the company’s governance framework and strategic oversight.

Sinopharm Group Announces Executive Director Changes

Sinopharm Group Co. Ltd. announced the resignation of Mr. Sun Jinglin as an executive director and member of the strategy and investment committee, effective immediately. Mr. Sun’s departure is amicable, with no disagreements reported. The board expressed gratitude for his contributions to the company’s development. Concurrently, the board proposed the appointment of Mr. Yang Binghua as a new executive director, subject to shareholder approval. Mr. Yang, with a strong background in public administration and experience in significant roles within state-owned enterprises, is expected to contribute to the company’s strategic direction. His appointment will be finalized upon approval at the general meeting, and his remuneration will be performance-based.

Sinopharm Group Reports Third Quarter 2025 Financial Results

Sinopharm Group Co. Ltd. announced its unaudited financial results for the third quarter of 2025, revealing a slight decline in revenue and net profit compared to the previous year. The company reported a 1.89% decrease in quarterly revenue and a 9.58% drop in net profit attributable to shareholders. Despite these declines, the company’s total assets increased by 6.31% from the end of last year, indicating a potential strengthening of its financial position. However, the net cash flow from operating activities showed a significant negative change, highlighting challenges in operational cash management.

Sinopharm Group Reports Strong Financial Position for Nine Months Ending September 2025

Sinopharm Group Co. Ltd. has announced its unaudited financial results for the nine months ending September 30, 2025, in compliance with the PRC GAAP. The company’s consolidated financial statements reveal a total asset increase to RMB 418.38 billion, indicating a robust financial position despite a decrease in cash at bank and on hand. This financial disclosure is crucial for stakeholders as it reflects the company’s operational performance and financial health, impacting its market positioning and investor confidence.

Sinopharm’s CNMDC Reports Mixed Financial Results for 2025

Sinopharm Group Co. Ltd. announced the unaudited financial results of its subsidiary, China National Medical Device Co., Ltd. (CNMDC), for the nine months ending September 30, 2025. The results showed a slight decline in revenue and operating profit compared to the previous year, with revenue decreasing by 2.41% and operating profit by 10.34%. Despite these declines, the total assets and equity attributable to the parent company increased by 4.01% and 3.86%, respectively, indicating a potential strengthening of the company’s financial position. The net cash flow from operating activities showed a significant improvement, reducing the negative flow by 49.55%, which may suggest better cash management or operational efficiency.

Sinopharm Reports Steady Revenue Growth Amid Cash Flow Challenges in Q3 2025

Sinopharm Group Co. Ltd. announced its unaudited financial results for the third quarter of 2025, showcasing a revenue of RMB 13.75 billion, marking a 3.58% increase compared to the same period last year. The net profit attributable to shareholders rose by 13.10% to RMB 543.72 million, although the net cash flow from operating activities was negative at RMB -2.05 billion. These results indicate a stable revenue growth and profitability, despite challenges in cash flow, which could impact the company’s operational liquidity and stakeholder confidence.

Sinopharm Accord Reports Decline in Nine-Month Financial Performance

Sinopharm Group Co. Ltd. announced the preliminary financial data for its subsidiary, Sinopharm Accord, for the nine months ending September 30, 2025. The report indicates a slight decrease in total revenue and net profit compared to the previous year, with total revenue down by 2.38% and net profit attributable to shareholders decreasing by 10.18%. Despite the decline in profits, the company saw an increase in total assets by 6.31% and equity attributable to shareholders by 4.30%, suggesting a stable financial position. These results may impact the company’s market positioning and stakeholder confidence, as they reflect both challenges and resilience in the current economic climate.

Sinopharm Group to Review Quarterly Financial Results

Sinopharm Group Co. Ltd. has announced that its board of directors will hold a meeting on October 24, 2025, to consider and approve the unaudited quarterly results for the nine months ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.