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Sinopharm Group Co Ltd Class H (HK:1099)
:1099

Sinopharm Group Co (1099) AI Stock Analysis

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HK

Sinopharm Group Co

(OTC:1099)

Rating:78Outperform
Price Target:
HK$21.50
▲(16.22%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 (1099) vs. iShares MSCI Hong Kong ETF (EWH)

Sinopharm Group Co Business Overview & Revenue Model

Company DescriptionSinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and medical devices and healthcare products in the People's Republic of China. The company operates through four segments: Pharmaceutical Distribution, Medical Devices, Retail Pharmacy, and Other Business. The Pharmaceutical Distribution segment distributes pharmaceutical products to hospitals, other distributors, retail drug stores, and clinics. This segment also offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. The Medical Devices segment distributes medical devices. The Retail Pharmacy segment operates and franchises a network of retail drug stores. As of December 31, 2021, this segment had 10,259 retail pharmacies. The Other Business segment engages in the production and sale of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents and manages properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products; and offers information technology development and medicine consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, and technology training activities. Sinopharm Group Co. Ltd. has a strategic partnership with I-Mab to enhance its commercial capabilities and commercialization transformation. The company was founded in 2003 and is headquartered in Shanghai, the People's Republic of China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.
How the Company Makes MoneySinopharm Group Co., Ltd. generates revenue primarily through its extensive distribution network, which supplies pharmaceuticals, medical devices, and healthcare products to hospitals, pharmacies, and other healthcare institutions. The company's core revenue streams include the wholesale distribution of pharmaceuticals, which accounts for a significant portion of its earnings. Additionally, Sinopharm operates retail pharmacies, contributing to its income by selling medicines directly to consumers. The company also engages in the distribution of medical equipment and devices, further diversifying its revenue base. Strategic partnerships with manufacturers and healthcare providers enhance its market presence and support its revenue growth. Sinopharm's large-scale operations and extensive logistics network enable it to maintain a dominant position within the Chinese healthcare market, driving its profitability.

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
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue584.51B596.57B552.15B521.05B456.41B
Gross Profit44.26B48.51B47.43B44.05B40.32B
EBITDA20.17B26.90B26.25B24.68B22.62B
Net Income7.05B9.05B14.35B13.06B12.10B
Balance Sheet
Total Assets392.83B383.39B364.78B335.41B311.24B
Cash, Cash Equivalents and Short-Term Investments54.31B63.81B55.22B43.54B50.22B
Total Debt76.39B73.78B69.59B68.37B68.53B
Total Liabilities266.14B263.08B254.71B235.76B221.29B
Stockholders Equity78.88B74.58B68.07B61.89B56.36B
Cash Flow
Free Cash Flow9.58B14.84B18.55B7.05B9.07B
Operating Cash Flow11.55B17.17B20.96B9.31B11.15B
Investing Cash Flow-3.75B-944.53M-3.59B-1.27B-2.20B
Financing Cash Flow-17.29B-7.64B-5.69B-14.69B2.03B

Sinopharm Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price18.50
Price Trends
50DMA
17.96
Positive
100DMA
18.21
Positive
200DMA
18.77
Negative
Market Momentum
MACD
0.16
Positive
RSI
55.70
Neutral
STOCH
52.38
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 18.5 is above the 20-day moving average (MA) of 18.40, above the 50-day MA of 17.96, and below the 200-day MA of 18.77, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 55.70 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$57.32B7.509.19%4.02%-3.94%-23.48%
51
Neutral
$7.55B0.30-61.90%2.27%17.11%1.58%
$8.32B9.166.08%3.02%
78
Outperform
HK$3.57B11.657.40%4.17%0.67%-1.75%
HK$761.40M13.188.78%6.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1099
Sinopharm Group Co
18.50
-1.45
-7.27%
SHPMF
Shanghai Pharmaceuticals Holding Co
1.52
0.04
2.70%
HK:1931
IVD Medical Holding Limited
2.00
1.08
117.39%
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
7.05
-1.00
-12.42%

Sinopharm Group Co Corporate Events

Sinopharm Group Co. Ltd. Reports Successful AGM and Shareholder Meetings
Jun 12, 2025

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
Jun 12, 2025

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
Jun 12, 2025

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
Jun 10, 2025

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
Jun 9, 2025

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
Jun 9, 2025

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
May 22, 2025

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
May 22, 2025

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
May 22, 2025

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
May 16, 2025

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
May 16, 2025

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.

Sinopharm Announces Board Changes with New Director Appointment
Apr 27, 2025

Sinopharm Group Co. Ltd. announced the resignation of Mr. Chen Fangruo as an independent non-executive director due to the completion of his term. The company expressed gratitude for his contributions to its development and governance. Concurrently, the board proposed the appointment of Mr. Chen Weiru as a new independent non-executive director, pending shareholder approval. Mr. Chen Weiru brings extensive experience in strategy formulation and corporate management, which is expected to enhance the board’s diversity and strategic capabilities.

Sinopharm Group Reports Q1 2025 Financial Results
Apr 27, 2025

Sinopharm Group Co. Ltd. announced its unaudited financial results for the first quarter of 2025, revealing a total asset increase to RMB 415.08 billion from RMB 392.67 billion at the end of 2024. The financial disclosure, required by Hong Kong and Shanghai stock exchange regulations, highlights a significant rise in accounts receivables, indicating robust business operations and potential growth in the pharmaceutical distribution sector.

Sinopharm Reports Mixed Q1 2025 Financial Results
Apr 24, 2025

Sinopharm Group Co. Ltd. reported its unaudited financial results for the first quarter ending March 31, 2025. The company saw a 4.87% increase in revenue compared to the same period last year, reaching approximately RMB 12.71 billion. However, net profit attributable to shareholders slightly decreased by 0.10%. The net cash flow from operating activities was negative, indicating potential liquidity challenges. Despite these mixed results, the company’s total assets and equity attributable to shareholders showed modest growth, suggesting a stable financial position.

Sinopharm Accord Reports Q1 2025 Financial Results with Declines in Revenue and Profit
Apr 24, 2025

Sinopharm Group Co. Ltd. announced the unaudited financial results for its subsidiary, Sinopharm Accord, for the first quarter ended March 31, 2025. The company reported a decline in revenue by 4.17% and a 15.63% decrease in net profit attributable to shareholders compared to the same period last year. Additionally, there was a significant drop in net cash flow from operating activities by 186.57%. Despite these declines, the total assets increased by 5.19%, indicating a potential for long-term growth.

Sinopharm’s CNMDC Shows Resilient Financial Performance in Q1 2025
Apr 24, 2025

Sinopharm Group Co. Ltd. announced the principal unaudited financial data for its subsidiary, China National Medical Device Co., Ltd. (CNMDC), for the first quarter of 2025. The report highlights a slight decline in revenue by 0.94% and a 7.39% drop in operating profit compared to the same period last year. However, total comprehensive income attributable to the parent company’s owners increased by 5.79%. Notably, net cash flow from operating activities improved significantly, showing a 56.34% decrease in negative cash flow. These financial results indicate a stable asset growth with total assets increasing by 2.83% and total equity rising by 1.58%, reflecting a cautious yet positive outlook for the company’s financial health.

Sinopharm Group Announces Board Meeting to Review Q1 2025 Results
Apr 10, 2025

Sinopharm Group Co. Ltd. has announced a board meeting scheduled for April 25, 2025, to review and approve the unaudited quarterly results for the first quarter of 2025. This meeting is crucial for assessing the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s market positioning.

Sinopharm Accord Reports Significant Profit Decline in 2024
Apr 7, 2025

Sinopharm Accord reported a slight decrease in revenue for 2024, down 1.46% to RMB74.378 billion. The company’s net profit attributable to shareholders fell significantly by 59.83% to RMB642 million, indicating challenges in maintaining profitability despite a slight increase in net assets. The financial results reflect a substantial decline in operating and total profits, impacting the company’s return on equity and earnings per share.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 10, 2025