China Shineway Pharmaceutical Group Limited (HK:2877)
:2877
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China Shineway Pharmaceutical Group Limited
(2877)
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Rating:81Outperform
Price Target:
HK$9.50
▲(10.72% Upside)
Action:Reiterated
Date:04/26/26
The score is driven primarily by strong financial quality (high margins and very low leverage) and very attractive valuation (low P/E and high dividend yield). Technicals add support with price above major moving averages and positive MACD, though momentum indicators are only moderate. The main risk tempering the score is the recent revenue decline and some margin softening versus the 2023 peak.
Positive Factors
High Profitability
Consistently very high gross margins and a ~30% net margin in 2025 indicate durable pricing power and efficient manufacturing for core proprietary medicines. Strong margins underpin long-term cash generation, support reinvestment, and help sustain dividend capacity even if sales growth slows.
Negative Factors
Revenue Decline / Weak Top Line
Material top-line weakness—revenue fell notably into 2024–2025—is a structural concern for long-term growth. Persistent revenue contraction limits operating leverage, constrains reinvestment and could force reliance on margin improvements or cost cuts to sustain profits and cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Consistently very high gross margins and a ~30% net margin in 2025 indicate durable pricing power and efficient manufacturing for core proprietary medicines. Strong margins underpin long-term cash generation, support reinvestment, and help sustain dividend capacity even if sales growth slows.
Read all positive factors
China Shineway Pharmaceutical Group Limited (2877) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.41B
Dividend Yield5.8%
Average Volume (3M)1.29M
Price to Earnings (P/E)6.1
Beta (1Y)0.56
Revenue Growth-17.03%
EPS Growth12.82%
CountryHK
Employees3,220
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)1.25
Shares Outstanding827,000,000
10 Day Avg. Volume1,790,900
30 Day Avg. Volume1,290,900
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)0.72
Price to Sales (P/S)1.86
P/FCF Ratio5.99
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)1.12
Revenue Forecast (FY)HK$4.11B
China Shineway Pharmaceutical Group Limited Business Overview & Revenue Model
Company Description
China Shineway Pharmaceutical Group Limited, an investment holding company, engages in the research and development, manufacture, and trade of Chinese medicines in the People's Republic of China and Hong Kong. The company offers modern Chinese med...
How the Company Makes Money
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China Shineway Pharmaceutical Group Limited Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.14B | 3.78B | 4.52B | 3.95B | 3.22B |
| Gross Profit | 2.27B | 2.83B | 3.39B | 2.94B | 2.41B |
| EBITDA | 739.52M | 1.00B | 1.42B | 1.10B | 903.74M |
| Net Income | 949.95M | 840.05M | 969.51M | 722.77M | 556.67M |
Balance Sheet | |||||
| Total Assets | 10.78B | 10.04B | 9.57B | 8.23B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 7.57B | 6.49B | 5.91B | 5.05B | 4.21B |
| Total Debt | 335.05M | 346.53M | 301.33M | 7.44M | 14.91M |
| Total Liabilities | 2.72B | 2.57B | 2.54B | 1.85B | 1.30B |
| Stockholders Equity | 8.07B | 7.47B | 7.03B | 6.38B | 5.90B |
Cash Flow | |||||
| Free Cash Flow | 974.13M | 823.02M | 788.31M | 980.21M | 609.52M |
| Operating Cash Flow | 1.17B | 963.13M | 932.63M | 1.11B | 703.15M |
| Investing Cash Flow | 222.03M | -272.11M | -49.54M | -45.42M | 395.01M |
| Financing Cash Flow | -375.01M | -392.48M | -26.74M | -250.04M | -828.93M |
China Shineway Pharmaceutical Group Limited Technical Analysis
Negative
8.58
Price Trends
9.02
Negative
8.94
Negative
8.49
Negative
Market Momentum
-0.17
Positive
33.25
Neutral
6.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2877, the sentiment is Negative. The current price of 8.58 is below the 20-day moving average (MA) of 9.12, below the 50-day MA of 9.02, and above the 200-day MA of 8.49, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2877.
China Shineway Pharmaceutical Group Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | HK$772.87M | 3.58 | 12.80% | 7.52% | -9.66% | 16.17% | |
82 Outperform | HK$1.35B | 5.52 | 10.88% | ― | 2.39% | 7.94% | |
81 Outperform | HK$6.41B | 6.14 | 11.90% | 5.80% | -17.03% | 12.82% | |
69 Neutral | HK$2.22B | 5.13 | 12.91% | 15.40% | -1.88% | 17.57% | |
58 Neutral | HK$9.34B | 11.74 | 5.02% | 4.47% | 5.91% | -40.12% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$8.16B | -27.64 | -1.64% | 3.66% | -10.68% | -737.07% |
* Healthcare Sector Average
HK:2877
China Shineway Pharmaceutical Group Limited
8.43
1.40
19.97%
HK:0570
China Traditional Chinese Medicine Holdings Co
1.61
-0.46
-22.11%
HK:8049
Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H
2.42
0.47
23.91%
HK:0239
Pak Fah Yeow International Limited
2.44
0.19
8.44%
HK:2633
Jacobson Pharma Corporation Limited
1.16
-0.01
-0.85%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
6.23
0.57
10.07%
China Shineway Pharmaceutical Group Limited Corporate Events
China Shineway Q1 Turnover Drops 18% as Product Mix Shifts
May 7, 2026
China Shineway Pharmaceutical Group reported that first-quarter 2026 turnover fell 18.0% year on year to RMB624 million, based on unaudited management accounts. The shift in product mix saw injection and TCM formula granule revenues decline sharpl...
China Shineway Pharma Sets 2026 AGM to Approve Results and Share Issuance Mandate
Apr 23, 2026
China Shineway Pharmaceutical Group Limited has called its annual general meeting for 28 May 2026 in Hong Kong, where shareholders will review and adopt the audited financial statements, the directors’ report and the independent auditor̵...
China Shineway Pharmaceutical Declares First Interim Dividend for Fiscal 2026
Mar 27, 2026
China Shineway Pharmaceutical Group Limited has declared a first interim ordinary dividend of RMB 0.43 per share for the fiscal year ending 31 December 2026, equivalent to HKD 0.487 per share based on an exchange rate of RMB 1 to HKD 1.132. The mo...
Shineway Profit Rises Despite Revenue Slump as TCM Sector Resets
Mar 27, 2026
China Shineway Pharmaceutical Group reported 2025 revenue of RMB3.14 billion, down 17.0% amid a sector-wide downturn, with gross margin easing to 72.3%, yet profit rising 13.1% to RMB949.9 million and earnings per share climbing to RMB1.26. The bo...
China Shineway Pharma Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 17, 2026
China Shineway Pharmaceutical Group Limited has scheduled a board meeting in Hong Kong on 27 March 2026 to review and approve the annual results for the year ended 31 December 2025. The board will also consider declaring a dividend at the same mee...
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.