Shanghai Pharmaceuticals Holding Co Ltd Class H (HK:2607)
:2607
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Shanghai Pharmaceuticals Holding Co
(2607)
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Rating:67Neutral
Price Target:
HK$13.00
▲(9.15% Upside)
Action:ReiteratedDate:04/03/26
The score is driven primarily by stable but mid-quality fundamentals: manageable leverage and improved earnings are tempered by slowing growth, thin/more pressured margins, and inconsistent cash conversion. Technicals add support with price above major moving averages and constructive momentum, while valuation is held back by an unusable P/E input and only a modest dividend yield.
Positive Factors
Diversified business model
The firm operates both large-scale distribution and drug manufacturing, giving diversified revenue streams and cross-selling opportunities across hospitals, pharmacies and logistics. This reduces single-segment dependency and supports stable structural cashflow and customer stickiness over months to years.
Negative Factors
Sharply slowing revenue growth
A sharp deceleration to ~1% top-line growth reduces forward operating leverage and limits scope for margin recovery. Slower organic demand intensifies competitive pressure, weakens bargaining leverage on procurement and may constrain long-term reinvestment and scale benefits if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
The firm operates both large-scale distribution and drug manufacturing, giving diversified revenue streams and cross-selling opportunities across hospitals, pharmacies and logistics. This reduces single-segment dependency and supports stable structural cashflow and customer stickiness over months to years.
Read all positive factors
Shanghai Pharmaceuticals Holding Co (2607) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$66.41B
Dividend Yield2.67%
Average Volume (3M)2.90M
Price to Earnings (P/E)6.6
Beta (1Y)0.69
Revenue Growth2.77%
EPS Growth39.24%
CountryHK
Employees49,402
SectorHealthcare
Sector Strength45
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.18
Shares Outstanding919,072,700
10 Day Avg. Volume2,690,085
30 Day Avg. Volume2,904,360
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.50
Price to Sales (P/S)0.13
P/FCF Ratio9.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.42
Revenue Forecast (FY)HK$298.72B
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: Pr...
How the Company Makes Money
Shanghai Pharmaceuticals primarily makes money through (1) pharmaceutical distribution and (2) pharmaceutical manufacturing, with additional contributions from related healthcare services where applicable.
1) Pharmaceutical distribution (wholesal...
Shanghai Pharmaceuticals Holding Co Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 283.58B | 275.25B | 260.30B | 231.98B | 215.82B |
| Gross Profit | 30.42B | 30.63B | 30.93B | 30.49B | 28.54B |
| EBITDA | 14.37B | 12.06B | 10.90B | 12.44B | 10.55B |
| Net Income | 5.72B | 4.55B | 3.77B | 5.62B | 5.09B |
Balance Sheet | |||||
| Total Assets | 233.15B | 221.21B | 211.97B | 198.13B | 163.44B |
| Cash, Cash Equivalents and Short-Term Investments | 43.08B | 44.38B | 40.67B | 37.01B | 22.39B |
| Total Debt | 49.48B | 47.79B | 42.90B | 38.56B | 31.69B |
| Total Liabilities | 143.36B | 137.47B | 131.65B | 120.13B | 104.37B |
| Stockholders Equity | 75.89B | 71.68B | 68.52B | 67.06B | 49.36B |
Cash Flow | |||||
| Free Cash Flow | 3.83B | 3.43B | 2.26B | 2.06B | 942.55M |
| Operating Cash Flow | 6.15B | 5.83B | 5.23B | 4.74B | 5.06B |
| Investing Cash Flow | -3.98B | 415.98M | -2.49B | -12.47B | -6.02B |
| Financing Cash Flow | -5.65B | -1.86B | 231.85M | 12.14B | 1.57B |
Shanghai Pharmaceuticals Holding Co Technical Analysis
Positive
11.91
Price Trends
11.65
Positive
11.72
Positive
11.88
Positive
Market Momentum
<0.01
Negative
63.80
Neutral
87.09
Negative
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 11.91 is above the 20-day moving average (MA) of 11.44, above the 50-day MA of 11.65, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.80 is Neutral, neither overbought nor oversold. The STOCH value of 87.09 is Negative, 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$67.09B | 3.75 | 8.62% | 3.75% | -2.68% | -21.45% | |
67 Neutral | HK$66.41B | 6.62 | 7.64% | 2.67% | 2.77% | 39.24% | |
66 Neutral | HK$1.85B | 20.84 | 4.85% | 3.81% | 0.33% | -44.28% | |
60 Neutral | HK$628.56M | 7.99 | 7.98% | 8.03% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:2607
Shanghai Pharmaceuticals Holding Co
12.07
1.92
18.90%
HK:1099
Sinopharm Group Co
21.50
4.60
27.20%
HK:1931
IVD Medical Holding Limited
1.14
-0.56
-32.94%
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
5.82
-1.30
-18.26%
Shanghai Pharmaceuticals Holding Co Corporate Events
Shanghai Pharmaceuticals Publishes Audited 2025 Annual Results
Mar 30, 2026
Shanghai Pharmaceuticals Holding Co., Ltd. has released its audited annual results for the year ended 31 December 2025, prepared under China Accounting Standards and reviewed by its board audit committee. The full 2025 annual report will be made a...
Shanghai Pharmaceuticals Proposes Final 2025 Dividend and Details H-Share Tax Treatment
Mar 30, 2026
Shanghai Pharmaceuticals Holding Co., Ltd. has proposed a final ordinary cash dividend of RMB 3.5 per 10 shares for the financial year ended 31 December 2025, subject to shareholder approval. Key timetable details, including the record date, ex-di...
Shanghai Pharmaceuticals Sets Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 18, 2026
Shanghai Pharmaceuticals Holding Co., Ltd. has scheduled a board meeting for 30 March 2026 to review and approve the annual results for the financial year ended 31 December 2025. The board will also consider the proposal and potential declaration ...
Shanghai Pharmaceuticals Names Zhao Yong as Employee Director
Feb 11, 2026
Shanghai Pharmaceuticals Holding has appointed senior executive Zhao Yong as the employee director on its eighth session board, following his election at the company’s employee representative meeting on February 11, 2026. Zhao, currently dep...
Shanghai Pharmaceuticals Sets Board Line-up and Committee Roles
Feb 11, 2026
Shanghai Pharmaceuticals Holding Co., Ltd. has announced the updated composition of its board of directors as of 11 February 2026, naming Yang Qiuhua as chairman alongside three other executive directors, one non-executive director, one employee d...
Shanghai Pharmaceuticals Boosts Stake in Finance Unit to 40% After Completing Connected Transaction
Jan 13, 2026
Shanghai Pharmaceuticals Holding Co., Ltd. has completed a connected transaction to acquire an additional 10% equity stake in its affiliated finance company from SIIC Dongtan, raising its ownership in the finance entity to 40%. The completion of t...
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.