China Shineway Pharmaceutical Group Limited (2877) AI Stock Analysis

• Market Cap: HK$5.92B
• Dividend Yield: 9.82%
• Average Volume (3M): 897.21K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.57
• Revenue Growth: -18.09%
• EPS Growth: -15.08%
• Country: HK
• Employees: 3,220
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.21
• Shares Outstanding: 827,000,000
• 10 Day Avg. Volume: 682,084
• 30 Day Avg. Volume: 897,207
• PEG Ratio: 0.24
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$8.50 ▲(8.42%Upside)

China Shineway Pharmaceutical Group Limited's stock is supported by strong financial performance and an attractive valuation, though technical indicators suggest moderate bullish sentiment. The absence of recent earnings call data and corporate events leaves room for uncertainty. Investors are advised to monitor cash flow reporting and revenue trends closely.

China Shineway Pharmaceutical Group Limited Business Overview & Revenue Model

Company Description

China Shineway Pharmaceutical Group Limited (2877) is a leading pharmaceutical company in China, specializing in the research, development, manufacturing, and distribution of traditional Chinese medicine (TCM) and modern pharmaceuticals. The company operates in the healthcare sector, offering a diverse range of products including injections, soft capsules, granules, and other herbal-based medical solutions. Shineway is recognized for its commitment to quality and innovation in providing effective healthcare products to meet the needs of patients both domestically and internationally.

How the Company Makes Money

China Shineway Pharmaceutical Group Limited generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include the production and distribution of traditional Chinese medicine and modern pharmaceuticals, which are sold across various healthcare channels. Shineway benefits from a strong distribution network and strategic partnerships with hospitals, clinics, and pharmacies, ensuring wide accessibility of its products. Additionally, the company invests in research and development to continually enhance its product offerings and maintain competitiveness in the pharmaceutical market. Government healthcare policies and increasing demand for integrated medicine solutions also contribute significantly to Shineway's financial performance.

China Shineway Pharmaceutical Group Limited Financial Statement Overview

Summary

The company displays strong profitability and effective balance sheet management. A low debt-to-equity ratio indicates financial stability. However, recent revenue decline and lack of recent cash flow data are concerns.

Income Statement

The company demonstrates strong profitability with a consistent gross profit margin and net profit margin over the years. Revenue growth has been steady, although there was a decline in the most recent year. EBIT and EBITDA margins indicate effective cost management. However, the recent dip in revenue warrants attention.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating low leverage and strong equity position. The return on equity has been stable, reflecting effective use of shareholder funds. High equity ratio provides financial stability, although total liabilities show a slight increase.

Cash Flow

Cash flow from operations has been strong, with positive free cash flow, although it showed a decline in the latest period. The absence of reported operating cash flow in the most recent year is concerning. The company has been managing capital expenditure efficiently, but the lack of recent data limits a full analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.78B	4.52B	3.95B	3.22B	2.66B
Gross Profit	2.83B	3.39B	2.94B	2.41B	1.99B
EBITDA	1.00B	1.42B	1.10B	903.74M	620.04M
Net Income	840.05M	969.51M	722.77M	556.67M	295.03M
Balance Sheet
Total Assets	10.04B	9.57B	8.23B	7.20B	7.21B
Cash, Cash Equivalents and Short-Term Investments	6.49B	5.91B	5.05B	4.21B	3.95B
Total Debt	346.53M	301.33M	7.44M	14.91M	392.14M
Total Liabilities	2.57B	2.54B	1.85B	1.30B	1.42B
Stockholders Equity	7.47B	7.03B	6.38B	5.90B	5.79B
Cash Flow
Free Cash Flow	823.02M	788.31M	980.21M	609.52M	572.54M
Operating Cash Flow	963.13M	932.63M	1.11B	703.15M	638.57M
Investing Cash Flow	-272.11M	-49.54M	-45.42M	395.01M	-305.59M
Financing Cash Flow	-392.48M	-26.74M	-250.04M	-828.93M	-329.79M

China Shineway Pharmaceutical Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2877, the sentiment is Positive. The current price of 7.84 is above the 20-day moving average (MA) of 7.73, above the 50-day MA of 7.49, and below the 200-day MA of 8.11, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 74.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2877.

China Shineway Pharmaceutical Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8049	81 Outperform	HK$1.17B	5.83		2.93%	2.82%	21.63%
2877	74 Outperform	HK$5.92B	6.50	11.61%	9.82%	-18.09%	-15.08%
0719	70 Outperform	HK$9.51B	9.06	8.89%	4.34%	4.91%	-11.80%
0239	70 Outperform	HK$785.33M	9.99	10.50%	15.08%	-8.64%	-25.13%
2633	67 Neutral	HK$3.10B	10.76	12.47%	4.29%	-7.15%	2.38%
Sector *	60 Neutral	HK$15.27B	5.80	-7.43%	4.22%	11.60%	-21.06%
0570	58 Neutral	HK$11.13B	194.83	0.25%	3.59%	-10.72%	-95.88%

China Shineway Pharmaceutical Group Limited Corporate Events

China Shineway Appoints New Nomination Committee Member

China Shineway Pharmaceutical Group Limited has announced the appointment of Ms. Wang Guihua as a member of its nomination committee, effective from June 10, 2025. This strategic appointment is expected to enhance the company’s governance structure and strengthen its leadership, potentially impacting its market positioning positively.

China Shineway Pharmaceutical Updates Nomination Committee Terms

China Shineway Pharmaceutical Group Limited has revised and adopted the terms of reference for its Nomination Committee, emphasizing transparency and compliance with Hong Kong Stock Exchange listing rules. The committee will play a crucial role in the selection and nomination of directors, ensuring that board appointments are conducted with a focus on diversity, expertise, and regulatory compliance, which could enhance the company’s governance and appeal to stakeholders.

China Shineway Pharmaceutical Announces New Board of Directors

China Shineway Pharmaceutical Group Limited, a company incorporated in the Cayman Islands, has announced changes to its Board of Directors, effective from 10 June 2025. The board will consist of executive directors Li Zhenjiang, Xin Yunxia, and Li Huimin, independent non-executive directors Liu Shun Fai, Yew Yat On, and Wang Guihua, and non-executive director Zhou Wencheng. The announcement also details the membership of the board committees, which are crucial for the company’s governance and strategic direction.

China Shineway Pharmaceutical Successfully Passes All AGM Resolutions

China Shineway Pharmaceutical Group Limited announced that all resolutions proposed at its Annual General Meeting on May 29, 2025, were successfully passed. The resolutions included the re-election of directors, authorization for the board to fix directors’ remuneration, re-appointment of auditors, and granting of mandates to repurchase and issue shares. This outcome reflects strong shareholder support and positions the company for continued strategic operations and governance.

China Shineway Reports 31.9% Decline in Q1 2025 Turnover

China Shineway Pharmaceutical Group Limited reported a significant decrease in turnover for the first quarter of 2025, with a total revenue of RMB761 million, marking a 31.9% decline compared to the same period in 2024. The company experienced downturns across its product lines, with injection products, soft capsules, granules, and TCM formula granules all seeing substantial reductions in sales, impacting the company’s market positioning and potentially affecting stakeholder confidence.

China Shineway Pharmaceutical Announces 2025 AGM Agenda

China Shineway Pharmaceutical Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 29, 2025, in Hong Kong. Key agenda items include the re-election of directors, re-appointment of auditors, and resolutions to authorize share repurchase and issuance. These actions are aimed at maintaining corporate governance and providing flexibility in capital management, potentially impacting shareholder value and market positioning.