Shanghai Pharmaceuticals Holding Co (2607) AI Stock Analysis

• Market Cap: $75.85B
• Dividend Yield: 2.64%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.73
• Revenue Growth: 3.60%
• EPS Growth: 47.33%
• Country: HK
• Employees: 49,402
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): 0.92
• Shares Outstanding: 919,072,700
• 10 Day Avg. Volume: 4,046,120
• 30 Day Avg. Volume: 3,803,663
• PEG Ratio: 0.47
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 12.82
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 6.99
• 1Y Price Target: $13.54
• Price Target Upside: 12.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$13.50 ▲(12.41% Upside)

Shanghai Pharmaceuticals Holding Co's strong financial performance and attractive valuation are key strengths, contributing positively to the overall score. However, the current technical indicators suggest bearish momentum, which tempers the overall outlook. The lack of recent earnings call data and notable corporate events means these factors do not influence the score.

Shanghai Pharmaceuticals Holding Co Business Overview & Revenue Model

Company Description

Shanghai Pharmaceuticals Holding Co., Ltd., an investment holding company, researches, develops, manufactures, distributes, and retails pharmaceutical and healthcare products in the People's Republic of China. It operates through four segments: Production, Distribution, Retail, and Others. The company offers chemicals and biochemicals, Chinese medicines, healthcare products, and medical devices in various therapeutic areas, including oncology, cerebrocardiovascular, CNS, general infection, immunology, digestive and metabolism, and respiratory. It provides approximately 700 varieties of drugs. The company also engages in the provision of pharmaceutical distribution, warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it engages in the operation of a network of retail pharmacy stores; online drug business; and provision of consulting services, assets management operations, as well as clinical trials, medical aid, physicians and patients' education, e-prescription management, and remote and cloud hospitals. Further, the company manufactures and trades in medicines. It operates approximately 2,000 retail chain pharmacies in 24 provinces. The company was incorporated in 1994 and is headquartered in Shanghai, the People's Republic of China. Shanghai Pharmaceuticals Holding Co., Ltd. is a subsidiary of Shanghai Pharmaceutical (Group) Co., Ltd.

How the Company Makes Money

Shanghai Pharmaceuticals generates revenue through multiple streams, primarily from the sale of pharmaceutical products, which includes both prescription medications and over-the-counter drugs. The company's revenue model is bolstered by its extensive distribution network that encompasses wholesale and retail channels, enabling it to reach a broad customer base. Additionally, Shanghai Pharmaceuticals engages in partnerships and collaborations with domestic and international pharmaceutical companies to enhance its product portfolio and market reach. The company also invests in research and development to innovate and launch new drugs, which can lead to increased sales and market share. Furthermore, government policies and healthcare reforms in China, aimed at expanding access to medications and improving healthcare services, contribute positively to the company's earnings.

Shanghai Pharmaceuticals Holding Co Financial Statement Overview

Summary

Shanghai Pharmaceuticals Holding Co demonstrates consistent growth and operational efficiency. The company maintains a stable financial foundation with strong cash flows. While there is a prudent use of leverage, the rising debt level warrants monitoring. Overall, the financial health is solid with a trajectory towards growth.

Income Statement

Shanghai Pharmaceuticals Holding Co shows solid revenue growth with a consistent increase over the years. The Gross Profit Margin is healthy, indicating effective cost management. However, the Net Profit Margin has seen some fluctuations, reflecting variable profitability. The EBIT and EBITDA margins are stable, showcasing operational efficiency.

Balance Sheet

The company maintains a reasonable Debt-to-Equity ratio, indicating a balanced approach to leverage. The Return on Equity is satisfactory, suggesting effective use of equity capital. The Equity Ratio highlights a solid equity foundation, though the rising debt could pose potential risks if not managed prudently.

Cash Flow

Operating cash flow remains strong, supporting the company's liquidity position. Free Cash Flow growth is notable, reflecting efficient cash management. The ratios of cash flows to net income indicate a robust conversion of revenue into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	277.43B	275.25B	260.30B	231.98B	215.82B	191.91B
Gross Profit	29.40B	30.63B	30.93B	30.49B	28.54B	27.44B
EBITDA	11.63B	12.06B	10.90B	12.44B	10.55B	10.44B
Net Income	6.07B	4.55B	3.77B	5.62B	5.09B	4.50B
Balance Sheet
Total Assets	238.07B	221.21B	211.97B	198.13B	163.44B	149.19B
Cash, Cash Equivalents and Short-Term Investments	47.50B	44.38B	40.67B	37.01B	22.39B	22.30B
Total Debt	51.73B	47.79B	42.90B	38.56B	31.69B	31.79B
Total Liabilities	149.21B	137.47B	131.65B	120.13B	104.37B	94.44B
Stockholders Equity	75.10B	71.68B	68.52B	67.06B	49.36B	45.35B
Cash Flow
Free Cash Flow	2.34B	3.43B	2.26B	2.06B	942.55M	3.83B
Operating Cash Flow	989.26M	5.83B	5.23B	4.74B	5.06B	6.84B
Investing Cash Flow	-1.18B	415.98M	-2.49B	―	―	―
Financing Cash Flow	3.75B	-1.86B	231.85M	12.14B	1.57B	―

Shanghai Pharmaceuticals Holding Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2607, the sentiment is Negative. The current price of 12.01 is below the 20-day moving average (MA) of 12.20, below the 50-day MA of 12.44, and above the 200-day MA of 11.79, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 12.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2607.

Shanghai Pharmaceuticals Holding Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2607	72 Outperform	$75.85B	6.87	8.35%	2.64%	3.60%	47.33%
1099	68 Neutral	HK$56.70B	7.72	8.94%	4.06%	-2.68%	-21.45%
1931	65 Neutral	HK$14.56B	77.41	7.01%	1.02%	0.33%	-44.28%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shanghai Pharmaceuticals Holding Co Corporate Events

Shanghai Pharmaceuticals Acquires 10% Stake in Finance Company

Shanghai Pharmaceuticals Holding Co., Ltd. has announced the execution of a Share Transfer Agreement to acquire a 10% equity interest in Finance Company from SIIC Dongtan. This strategic acquisition is expected to enhance the company’s financial capabilities and strengthen its market position in the pharmaceutical industry.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$14.50 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Reports Unaudited Interim Results for H1 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced its unaudited interim results for the six months ending June 30, 2025. The results, prepared according to Chinese Accounting Standards, have been reviewed by the Board and Audit Committee. The company reported no significant risks affecting its operations during this period, and all directors confirmed the accuracy and completeness of the report.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$14.50 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Schedules Board Meeting for Interim Results

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a board meeting scheduled for August 28, 2025, to approve and publish the interim results for the first half of the year. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals to Acquire Additional Stake in Finance Company

Shanghai Pharmaceuticals Holding Co., Ltd., a joint stock company incorporated in China, announced a proposed acquisition of a 10% equity interest in Finance Company from SIIC Dongtan for RMB143,335,577.71. This transaction will increase the company’s direct holding in Finance Company to 40%. The acquisition is considered a connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from circular and independent shareholders’ approval. The agreement is pending execution, and the company will announce once definitive agreements are entered.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Projects 52% Profit Surge for H1 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced an estimated 52% increase in net profit for the first half of 2025, attributed to the acquisition of an additional 10% equity interest in Shanghai Hutchison Pharmaceuticals Limited. This strategic move has allowed the company to consolidate SHPL’s financial results into its own, significantly boosting its earnings and strengthening its market position.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Announces Change in H Share Registrar

Shanghai Pharmaceuticals Holding Co., Ltd. announced a change in its H Share Registrar in Hong Kong, effective from 1 August 2025. This change to Tricor Investor Services Limited is expected to streamline the registration and transfer process for stakeholders, potentially impacting the company’s operational efficiency and investor relations.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Approves Key Resolutions at 2024 AGM

Shanghai Pharmaceuticals Holding Co., Ltd. recently held its 2024 Annual General Meeting (AGM) in Shanghai, where key resolutions, including the approval of the 2024 Annual Report and the Report of the Board of Directors, were passed with overwhelming support. The AGM was conducted in compliance with relevant legal and regulatory requirements, and it saw participation from a significant number of shareholders, underscoring the company’s strong governance and stakeholder engagement.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.

Shanghai Pharmaceuticals Announces Final Dividend for 2024

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a final cash dividend of RMB 2.9 per 10 shares for the financial year ending December 31, 2024, with the payment to be made in Hong Kong dollars. The dividend will be paid on August 25, 2025, following shareholder approval on June 26, 2025. The announcement includes details on withholding tax rates applicable to different categories of shareholders, reflecting the company’s compliance with international tax treaties and regulations. This dividend declaration underscores the company’s commitment to returning value to its shareholders and may impact its market positioning and investor relations positively.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$15.70 price target. To see the full list of analyst forecasts on Shanghai Pharmaceuticals Holding Co stock, see the HK:2607 Stock Forecast page.