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Shanghai Pharmaceuticals Holding Co Class H (HK:2607)
:2607

Shanghai Pharmaceuticals Holding Co (2607) AI Stock Analysis

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HK

Shanghai Pharmaceuticals Holding Co

(OTC:2607)

Rating:66Neutral
Price Target:
The overall score reflects strong financial performance with robust cash flows and revenue growth. Although there is potential risk from rising debt, the company's financial foundation remains solid. The technical analysis indicates a bearish trend, but the valuation metrics suggest that the stock is undervalued and offers an attractive dividend yield. These factors combined give a moderately positive outlook on the stock.

Shanghai Pharmaceuticals Holding Co (2607) vs. iShares MSCI Hong Kong ETF (EWH)

Shanghai Pharmaceuticals Holding Co Business Overview & Revenue Model

Company DescriptionShanghai Pharmaceuticals Holding Co., Ltd., listed under the stock code 2607, is a leading pharmaceutical group in China. The company operates in two main sectors: pharmaceutical manufacturing and distribution. It offers a wide range of products, including prescription drugs, over-the-counter medications, health products, and traditional Chinese medicines. Shanghai Pharmaceuticals is also involved in pharmaceutical research and development, seeking to innovate and expand its product offerings.
How the Company Makes MoneyShanghai Pharmaceuticals Holding Co., Ltd. generates revenue primarily through its comprehensive pharmaceutical manufacturing and distribution operations. The company's revenue streams include the sale of prescription and over-the-counter drugs, health supplements, and traditional Chinese medicines. It benefits from a robust distribution network, serving hospitals, pharmacies, and other healthcare institutions across China. Additionally, Shanghai Pharmaceuticals engages in strategic partnerships and collaborations for research and development, which can contribute to its earnings through innovative product launches and expanded market reach.

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
78
Positive
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
75
Positive
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
81
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
275.86B275.25B260.30B231.98B215.82B191.91B
Gross Profit
29.77B30.63B30.93B30.49B28.54B27.44B
EBIT
7.87B8.14B7.67B9.01B8.21B7.18B
EBITDA
9.35B12.06B10.90B12.44B10.55B10.44B
Net Income Common Stockholders
4.34B4.55B3.77B5.62B5.09B4.50B
Balance SheetCash, Cash Equivalents and Short-Term Investments
45.03B44.38B40.67B37.01B22.39B22.30B
Total Assets
225.87B221.21B211.97B198.13B163.44B149.19B
Total Debt
50.99B47.79B42.90B38.56B31.69B31.79B
Net Debt
14.83B12.05B12.38B11.16B9.30B9.50B
Total Liabilities
140.57B137.47B131.65B120.13B104.37B94.44B
Stockholders Equity
73.01B71.68B68.52B67.06B49.36B45.35B
Cash FlowFree Cash Flow
7.95B3.43B2.26B2.06B942.55M3.83B
Operating Cash Flow
5.99B5.83B5.23B4.74B5.06B6.84B
Investing Cash Flow
249.44M415.98M-2.49B
Financing Cash Flow
4.38B231.85M12.14B1.57B

Shanghai Pharmaceuticals Holding Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.84
Price Trends
50DMA
11.10
Positive
100DMA
11.62
Positive
200DMA
11.89
Negative
Market Momentum
MACD
0.18
Negative
RSI
60.53
Neutral
STOCH
79.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2607, the sentiment is Positive. The current price of 11.84 is above the 20-day moving average (MA) of 11.37, above the 50-day MA of 11.10, and below the 200-day MA of 11.89, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2607.

Shanghai Pharmaceuticals Holding Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$33.02B11.8114.56%5.03%-5.37%6.28%
71
Outperform
$58.32B7.639.19%5.60%-3.94%-23.48%
66
Neutral
HK$66.92B9.226.08%4.58%3.27%12.87%
66
Neutral
HK$81.02B42.706.14%1.33%7.63%-24.23%
65
Neutral
$67.21B14.576.22%1.96%-2.82%11.93%
62
Neutral
€32.92B9.06
3.05%
54
Neutral
$5.31B3.29-45.39%2.79%16.77%-0.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2607
Shanghai Pharmaceuticals Holding Co
11.66
0.43
3.87%
HK:1177
Sino Biopharmaceutical
4.55
1.86
68.89%
HK:1099
Sinopharm Group Co
18.68
-2.17
-10.42%
HK:2196
Shanghai Fosun Pharmaceutical (Group) Co
16.54
3.19
23.92%
HK:3320
China Resources Pharmaceutical Group Ltd.
5.35
-0.23
-4.09%
HK:1513
Livzon Pharmaceutical Group
29.50
3.89
15.21%

Shanghai Pharmaceuticals Holding Co Corporate Events

Shanghai Pharmaceuticals Releases 2025 Q1 Report
Apr 28, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has released its first quarterly report for 2025, prepared in accordance with PRC Accounting Standards for Business Enterprises. The report, which remains unaudited, emphasizes the company’s commitment to transparency and accuracy in its financial disclosures, as affirmed by its board of directors and senior management.

Shanghai Pharmaceuticals Completes Strategic Acquisition of SHPL Stake
Apr 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has completed the acquisition of a 10% equity interest in SHPL, making it a non-wholly owned subsidiary. This strategic move consolidates SHPL’s financial results into the company’s statements, potentially strengthening its market position and operational capabilities.

Shanghai Pharmaceuticals Joins Biomedical M&A Fund
Apr 14, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced its participation in the establishment of the Biomedical M&A Fund, alongside several partners, including Guotou Pioneer and Junshi Biosciences. The company has completed the necessary industrial and commercial registration procedures and filed with the Asset Management Association of China. This strategic move is expected to enhance Shanghai Pharmaceuticals’ capabilities in the biomedical sector, potentially impacting its operational growth and market positioning.

Shanghai Pharmaceuticals Announces Board Meeting for Quarterly Results
Apr 14, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a board meeting scheduled for April 28, 2025, to approve and publish the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and operational progress, potentially impacting its market positioning and stakeholder interests.

Shanghai Pharmaceuticals Declares Final Dividend for 2024
Mar 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced a final cash dividend of RMB 2.9 per 10 shares for the financial year ending December 31, 2024. This announcement reflects the company’s ongoing commitment to returning value to its shareholders. The dividend will be subject to withholding tax, with specific rates depending on the shareholder’s residency and applicable tax treaties with China. This move is likely to impact the company’s financial operations and shareholder relations, reinforcing its position in the market.

Shanghai Pharmaceuticals Enhances Governance with New Nomination Committee
Mar 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has established a Nomination Committee under its Board of Directors to enhance its corporate governance structure. The committee is tasked with analyzing and recommending candidates for directorship and senior management roles, ensuring a diverse and independent board composition that aligns with regulatory requirements.

Shanghai Pharmaceuticals Announces Board Committee Changes
Mar 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a change in the composition of its board committee. Ms. MAN Kwan has been appointed as a member of the Nomination Committee, effective from March 27, 2025. This appointment is part of the company’s ongoing efforts to strengthen its governance and enhance its strategic direction.

Shanghai Pharmaceuticals Announces New Board Composition
Mar 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced the composition of its board of directors and their respective roles, effective from March 27, 2025. This announcement highlights the strategic leadership structure of the company, which is crucial for its governance and operational effectiveness, potentially impacting its market positioning and stakeholder confidence.

Shanghai Pharmaceuticals Announces 2024 Annual Results
Mar 27, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced its 2024 annual results, audited by Deloitte Touche Tohmatsu, reflecting the company’s adherence to China Accounting Standards. The results, reviewed by the Audit Committee, will be published on the Hong Kong Stock Exchange and the company’s website. This announcement underscores the company’s commitment to transparency and its strategic positioning in the pharmaceutical industry, potentially impacting stakeholders by reinforcing its market reputation.

Shanghai Pharmaceuticals Subsidiary Penalized for Anti-Monopoly Violations
Mar 21, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced that its subsidiary, Shanghai Sine United Medicinal Herbs Co., Ltd., received an administrative penalty from the Shanghai Municipal Administration for Market Regulation for violating anti-monopoly laws. The penalty includes a fine and forfeiture of illegal income, but the financial impact on the parent company is limited due to the subsidiary’s small contribution to overall revenue. The company has taken steps to enhance compliance and prevent future monopolistic behavior, reflecting its commitment to fair market practices and sustainable development.

Shanghai Pharmaceuticals Announces Key Governance Changes at EGM
Mar 13, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. held its first extraordinary general meeting of 2025, where key resolutions were passed, including amendments to the Articles of Association and the election of an independent director. The meeting was conducted in compliance with relevant legal and regulatory requirements, with a significant majority of shareholders voting in favor of the proposed changes. This development is expected to impact the company’s governance structure positively, potentially enhancing its strategic positioning and operational efficiency.

Shanghai Pharmaceuticals Announces New Board Composition
Mar 13, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced the composition of its board of directors and their respective roles, effective March 13, 2025. This announcement highlights the company’s strategic focus on governance and leadership, potentially impacting its operational efficiency and stakeholder confidence.

Shanghai Pharmaceuticals Announces Board Meeting for Annual Results and Dividend Consideration
Mar 13, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a board meeting scheduled for March 27, 2025, to approve the company’s annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the financial performance of the company and potentially impact its dividend distribution strategy, influencing stakeholders’ expectations and market positioning.

Shanghai Pharmaceuticals Clarifies Director Candidate’s Name Ahead of EGM
Mar 12, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. issued a supplemental announcement regarding the upcoming extraordinary general meeting scheduled for March 13, 2025. The announcement clarifies the official English name of Dr. WAN Jun, a candidate for the independent non-executive director position, as Dr. WAN Jun MAN Kwan. The company assures stakeholders that the English version of the proxy form remains valid, and previous votes will be considered valid for the revised resolution.

Shanghai Pharmaceuticals Announces Extraordinary General Meeting Details
Mar 4, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced the details of its upcoming Extraordinary General Meeting, scheduled for March 13, 2025. The announcement indicates that the number of voting shares represented by shareholders planning to attend has not exceeded half of the total voting shares, which may impact the meeting’s proceedings and decisions.

Shanghai Pharmaceuticals Expands Stake in SHPL with Strategic Acquisition
Mar 2, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced an update on its acquisition of a 10% equity interest in SHPL from HUTCHMED Investment. This transaction is part of a broader agreement where GP Health Service Capital will acquire a 35% stake in SHPL, with designated purchasers GP Fund and Zhibaihe Enterprise Management. The supplemental agreement amends the share transfer conditions and board composition, reflecting the strategic alignment of interests among the involved parties. This acquisition is expected to bolster Shanghai Pharmaceuticals’ influence in the pharmaceutical market, potentially enhancing its operational capabilities and market positioning.

Shanghai Pharmaceuticals Announces Amendments to Articles of Association
Feb 21, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced proposed amendments to its Articles of Association. The key changes include adjustments to the composition of the Board of Directors, ensuring compliance with relevant laws and regulations. These amendments are aimed at enhancing corporate governance and ensuring the Board’s composition is in line with the company’s strategic goals and regulatory requirements.

Shanghai Pharmaceuticals Announces Extraordinary General Meeting for Strategic Governance Decisions
Feb 21, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for March 13, 2025, to discuss and approve amendments to the company’s Articles of Association and the election of an independent director for its board. This meeting is pivotal for the company as it considers significant governance changes, potentially impacting its decision-making processes and future strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.