China Shineway Pharmaceutical Group Limited (2877) AI Stock Analysis

• Market Cap: HK$7.05B
• Dividend Yield: 5.8%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.59
• Revenue Growth: -20.64%
• EPS Growth: -25.39%
• Country: HK
• Employees: 3,220
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.89
• Shares Outstanding: 827,000,000
• 10 Day Avg. Volume: 1,790,900
• 30 Day Avg. Volume: 1,290,900
• PEG Ratio: -0.61
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 8.33
• 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: HK$10.04
• Price Target Upside: 17.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$9.50 ▲(10.72% Upside)

The overall stock score is driven primarily by strong financial performance and attractive valuation metrics. The company's robust balance sheet and low P/E ratio are significant strengths. However, the neutral technical indicators and recent revenue decline suggest caution.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility, supporting long-term growth.

Profitability

Consistent profitability indicates effective cost management and a sustainable business model, enhancing long-term shareholder value.

Cash Flow Management

Strong cash flow management ensures the company can fund operations and growth initiatives without relying heavily on external financing.

Negative Factors

Revenue Decline

A decline in revenue can impact future profitability and market position, necessitating strategic adjustments to regain growth momentum.

Absence of Cash Flow Data

Lack of recent cash flow data hampers a full assessment of financial health, potentially obscuring liquidity issues or operational challenges.

Earnings Decline

A significant decline in earnings per share can affect investor confidence and the company's ability to reinvest in growth opportunities.

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 medicines in the form of soft capsules, granules, and injections, as well as TCM Formula Granules in various therapeutic areas, including cardio-cerebrovascular, anti-viral, orthopedics, pediatrics, gynecology, and gastroenterology. It also trades in agricultural products. The company was incorporated in 2004 and is headquartered in Shijiazhuang, the People's Republic of China. China Shineway Pharmaceutical Group Limited is a subsidiary of Forway Investment Limited.

How the Company Makes Money

China Shineway Pharmaceutical Group Limited generates revenue through multiple key streams, primarily from the sale of its pharmaceutical products, including prescription drugs and over-the-counter medications. The company benefits from a well-established distribution network and partnerships with healthcare institutions and pharmacies, enabling it to reach a broad customer base. Additionally, Shineway invests in research and development to innovate and expand its product offerings, which helps sustain its competitive edge in the market. The company may also engage in collaborations with other pharmaceutical firms or research organizations to enhance its product pipeline, contributing to its revenue growth.

China Shineway Pharmaceutical Group Limited Financial Statement Overview

Summary

China Shineway Pharmaceutical Group Limited displays a solid financial position with strong profitability and effective balance sheet management. The company has maintained good growth and stability, but the recent revenue decline and absence of cash flow data highlight areas for improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.34B	3.78B	4.52B	3.95B	3.22B	2.66B
Gross Profit	2.45B	2.83B	3.39B	2.94B	2.41B	1.99B
EBITDA	805.34M	1.00B	1.42B	1.10B	903.74M	620.04M
Net Income	828.24M	840.05M	969.51M	722.77M	556.67M	295.03M
Balance Sheet
Total Assets	10.39B	10.04B	9.57B	8.23B	7.20B	7.21B
Cash, Cash Equivalents and Short-Term Investments	6.96B	6.49B	5.91B	5.05B	4.21B	3.95B
Total Debt	341.34M	346.53M	301.33M	7.44M	14.91M	392.14M
Total Liabilities	2.58B	2.57B	2.54B	1.85B	1.30B	1.42B
Stockholders Equity	7.81B	7.47B	7.03B	6.38B	5.90B	5.79B
Cash Flow
Free Cash Flow	799.11M	823.02M	788.31M	980.21M	609.52M	572.54M
Operating Cash Flow	965.34M	963.13M	932.63M	1.11B	703.15M	638.57M
Investing Cash Flow	63.26M	-272.11M	-49.54M	-45.42M	395.01M	-305.59M
Financing Cash Flow	-374.31M	-392.48M	-26.74M	-250.04M	-828.93M	-329.79M

China Shineway Pharmaceutical Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 8.58 is below the 20-day moving average (MA) of 8.61, below the 50-day MA of 8.67, and above the 200-day MA of 8.10, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 70.81 is Negative, neither overbought nor oversold. The STOCH value of 82.21 is Negative, 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	78 Outperform	HK$1.22B	6.16	11.38%	―	10.26%	6.24%
0239	74 Outperform	HK$744.82M	10.50	9.75%	7.52%	-24.96%	-26.43%
2877	73 Outperform	HK$7.05B	7.90	10.85%	5.80%	-20.64%	-25.39%
2633	69 Neutral	HK$2.45B	8.49	12.97%	15.40%	-1.88%	17.57%
0719	58 Neutral	HK$10.24B	11.58	7.48%	4.47%	1.65%	-16.38%
0570	54 Neutral	HK$10.83B	-37.85	-1.26%	3.66%	-9.58%	-128.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

China Shineway Pharmaceutical Group Limited Corporate Events

China Shineway Reports 16.3% Turnover Decline for Nine Months Ending September 2025

China Shineway Pharmaceutical Group Limited announced a turnover of RMB 2,415 million for the nine months ending September 30, 2025, marking a 16.3% decline compared to the same period in 2024. The decrease in turnover was observed across all product categories, with injection products experiencing the largest drop at 23.6%. This downturn may impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:2877) stock is a Buy with a HK$9.50 price target. To see the full list of analyst forecasts on China Shineway Pharmaceutical Group Limited stock, see the HK:2877 Stock Forecast page.