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Shanghai Pharmaceuticals Holding Co Ltd Class H (HK:2607)
:2607
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Shanghai Pharmaceuticals Holding Co (2607) AI Stock Analysis

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HK:2607

Shanghai Pharmaceuticals Holding Co

(2607)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
HK$13.00
â–²(8.60% Upside)
Shanghai Pharmaceuticals Holding Co's strong financial performance and attractive valuation are key strengths, offset by weak technical indicators. The stock appears undervalued with a solid dividend yield, but current market momentum is bearish, suggesting caution.

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. is a leading healthcare company based in China, primarily engaged in the research, development, production, and distribution of pharmaceuticals and healthcare products. The company operates in various sectors, including pharmaceutical manufacturing, wholesaling, retail pharmacy, and healthcare services. Its core product offerings encompass a wide range of prescription drugs, over-the-counter medications, and medical devices, catering to various therapeutic areas such as oncology, cardiology, and infectious diseases.
How the Company Makes MoneyShanghai 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue277.43B275.25B260.30B231.98B215.82B191.91B
Gross Profit29.40B30.63B30.93B30.49B28.54B27.44B
EBITDA11.63B12.06B10.90B12.44B10.55B10.44B
Net Income6.07B4.55B3.77B5.62B5.09B4.50B
Balance Sheet
Total Assets238.07B221.21B211.97B198.13B163.44B149.19B
Cash, Cash Equivalents and Short-Term Investments47.50B44.38B40.67B37.01B22.39B22.30B
Total Debt51.73B47.79B42.90B38.56B31.69B31.79B
Total Liabilities149.21B137.47B131.65B120.13B104.37B94.44B
Stockholders Equity75.10B71.68B68.52B67.06B49.36B45.35B
Cash Flow
Free Cash Flow2.34B3.43B2.26B2.06B942.55M3.83B
Operating Cash Flow989.26M5.83B5.23B4.74B5.06B6.84B
Investing Cash Flow-1.18B415.98M-2.49B―――
Financing Cash Flow3.75B-1.86B231.85M12.14B1.57B―

Shanghai Pharmaceuticals Holding Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.97
Price Trends
50DMA
12.17
Negative
100DMA
12.18
Negative
200DMA
11.74
Positive
Market Momentum
MACD
-0.08
Positive
RSI
45.66
Neutral
STOCH
44.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2607, the sentiment is Neutral. The current price of 11.97 is below the 20-day moving average (MA) of 12.09, below the 50-day MA of 12.17, and above the 200-day MA of 11.74, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 44.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2607.

Shanghai Pharmaceuticals Holding 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
72
Outperform
$60.53B8.248.74%3.70%-2.68%-21.45%
71
Outperform
$65.17B7.247.53%2.65%2.77%39.24%
58
Neutral
HK$9.68B51.475.07%1.36%0.33%-44.28%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2607
Shanghai Pharmaceuticals Holding Co
11.97
-0.54
-4.30%
HK:1099
Sinopharm Group Co
19.96
0.06
0.29%
HK:1931
IVD Medical Holding Limited
6.77
5.10
305.39%
HK:2289
Charmacy Pharmaceutical Co., Ltd. Class H
5.97
-2.74
-31.45%

Shanghai Pharmaceuticals Holding Co Corporate Events

Shanghai Pharmaceuticals Renews Procurement Agreement with Wing Fat Printing
Oct 30, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced the renewal of its Procurement Framework Agreement with Wing Fat Printing, effective from January 1, 2026, to December 31, 2026. This agreement allows Wing Fat Group to continue supplying printed packaging materials for pharmaceutical products, ensuring the stability of Shanghai Pharmaceuticals’ operations and meeting future demand. The transactions are classified as continuing connected transactions under the Listing Rules, subject to specific reporting and review requirements but exempt from circular and independent shareholders’ approval. The annual cap for these transactions is set at RMB90,000,000, based on estimated future demand and historical procurement amounts. The agreement is expected to benefit the company by reducing administrative costs and maintaining business stability.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Releases 2025 Q3 Report Emphasizing Transparency
Oct 30, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has released its third quarterly report for 2025, prepared in accordance with PRC Accounting Standards for Business Enterprises. The report, which has not been audited, emphasizes the company’s commitment to transparency and accuracy in its financial disclosures, as affirmed by its board of directors and senior management. This announcement underscores the company’s adherence to regulatory requirements and its ongoing efforts to maintain trust with stakeholders.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Announces 2025 Interim Profit Distribution Plan
Oct 30, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced its proposed 2025 Interim Profit Distribution Plan, which was approved by the board of directors. The company plans to distribute a cash dividend of RMB1.20 per ten shares, amounting to a total of RMB445,003,417.08, representing 9.98% of the consolidated net profit for the first half of 2025. This plan is contingent upon shareholder approval at the upcoming general meeting. The announcement reflects the company’s commitment to returning value to its shareholders and maintaining stable financial operations.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Announces Interim Dividend for 2025
Oct 30, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced an interim cash dividend of RMB 1.2 per 10 shares for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence its market positioning by showcasing financial stability and shareholder confidence.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Q3 Results
Oct 17, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has announced a board meeting scheduled for October 30, 2025, to approve the company’s third-quarter results and consider interim dividend payments. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Announces Equity Adjustment
Oct 14, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced an equity adjustment involving the transfer of the entire equity interest in Shanghai Industrial Investment (Holdings) Company Limited to Golden Bell International Holdings Limited. This adjustment increases the shareholding of Shanghai Shangshi (Group) Co., Ltd. from 25.303% to 38.487% without changing the company’s controlling shareholder or de facto controller, which remains Shanghai SASAC. The adjustment complies with relevant regulations, exempting the acquirer from a mandatory tender offer, and does not trigger any mandatory general offer obligations under Hong Kong’s Code on Takeovers and Mergers.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$13.50 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 Clarifies 2024 Annual Report Details
Sep 25, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. has released additional information regarding its 2024 annual report, specifically addressing connected transactions and its Share Option Scheme. The company clarified details about ongoing connected transactions with Yunnan Baiyao Group Co., Ltd., Wing Fat Printing Limited, and property leasing agreements with Shanghai Pharma Group. Additionally, the company reported that there were no options available for grant under its Share Option Scheme as of the reporting period, with a total of 680,000 A Shares available for issue, representing a small fraction of the company’s total shares.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$14.00 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 Major Shareholder Restructuring
Sep 25, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced a significant change in its shareholder structure, as Shanghai Shangshi Yangtze River Delta Ecological Development Co., Ltd. transferred its 40% equity interest in Shanghai Pharmaceutical (Group) Co., Ltd. to Shanghai Shangshi (Group) Co., Ltd. for RMB6,721.5148 million. This transaction results in Shanghai Shangshi (Group) Co., Ltd. holding 100% of Shanghai Pharmaceutical (Group), which is a controlling shareholder of Shanghai Pharmaceuticals Holding Co., Ltd. The change is expected to have implications for the company’s governance and strategic direction, as well as affecting its market positioning and stakeholder relationships.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$14.00 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 Shareholder Structure
Sep 22, 2025

Shanghai Pharmaceuticals Holding Co., Ltd. announced a change in shareholder interest following an equity transfer agreement between Shanghai Shangshi (Group) Co., Ltd. and Shanghai International Investment Limited. This transfer, valued at RMB1,484.7498 million, results in Shanghai Industrial Investment (Holdings) Company Limited maintaining control over a significant portion of the company’s shares, totaling 38.465% of the company’s total share capital. This strategic move consolidates SIIC’s control, potentially impacting the company’s market operations and shareholder dynamics.

The most recent analyst rating on (HK:2607) stock is a Buy with a HK$14.00 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 Acquires 10% Stake in Finance Company
Sep 8, 2025

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 Steady Growth and Innovation
Aug 30, 2025

Shanghai Pharmaceuticals Holding Co., a prominent player in the pharmaceutical industry, is engaged in the research, development, manufacturing, and distribution of pharmaceutical products, with a strong presence in both the industrial and commercial sectors.

Shanghai Pharmaceuticals Reports Unaudited Interim Results for H1 2025
Aug 28, 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
Aug 18, 2025

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.

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: Nov 01, 2025