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China Shineway Pharmaceutical Group Limited
(2877)
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Rating:81Outperform
Price Target:
HK$8.50
â–¼(-0.93% Downside)
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 / Margins
Sustained very high gross margins and a roughly 30% net margin in 2025 indicate durable product-level economics and pricing power in core products. These margins provide long-term capacity to invest in R&D, absorb cost shocks, and fund shareholder returns without relying on leverage.
Negative Factors
Declining Revenue
Material top-line deterioration over recent years signals weakening demand or market share loss in core segments. Persistent revenue decline hampers scalability of fixed-cost investments and can compress long-term growth prospects absent a clear recovery or new revenue drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability / Margins
Sustained very high gross margins and a roughly 30% net margin in 2025 indicate durable product-level economics and pricing power in core products. These margins provide long-term capacity to invest in R&D, absorb cost shocks, and fund shareholder returns without relying on leverage.
Read all positive factors
China Shineway Pharmaceutical Group Limited (2877) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$5.61B
Dividend Yield5.8%
Average Volume (3M)1.29M
Price to Earnings (P/E)5.1
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
As an investment holding enterprise, China Shineway Pharmaceutical Group Limited is dedicated to the development, production, and sale of traditional Chinese medicines throughout the People's Republic of China and Hong Kong. Its extensive product ...
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
8.71
Negative
8.81
Negative
8.53
Negative
Market Momentum
-0.32
Positive
25.16
Positive
23.69
Neutral
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 above the 20-day moving average (MA) of 8.11, below the 50-day MA of 8.71, and above the 200-day MA of 8.53, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 25.16 is Positive, neither overbought nor oversold. The STOCH value of 23.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$5.61B | 5.15 | 11.97% | 5.80% | -17.03% | 12.82% | |
69 Neutral | HK$1.90B | 6.62 | 12.91% | 15.40% | -0.47% | -0.33% | |
61 Neutral | HK$16.24B | 6.26 | 12.65% | 5.11% | -4.09% | -22.73% | |
59 Neutral | HK$8.17B | 32.84 | 5.02% | 4.47% | 5.91% | -40.12% | |
57 Neutral | HK$16.22B | 13.04 | 7.26% | 3.13% | 5.48% | -49.67% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | HK$6.75B | -17.08 | -1.66% | 3.66% | -10.68% | -737.07% |
* Healthcare Sector Average
HK:2877
China Shineway Pharmaceutical Group Limited
7.43
0.08
1.16%
HK:3933
The United Laboratories International Holdings
8.23
-6.18
-42.91%
HK:0570
China Traditional Chinese Medicine Holdings Co
1.34
-0.78
-36.94%
HK:2633
Jacobson Pharma Corporation Limited
1.00
-0.47
-31.97%
HK:0512
Grand Pharmaceutical Group Limited
4.57
-3.86
-45.78%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
5.24
-1.05
-16.69%
China Shineway Pharmaceutical Group Limited Corporate Events
China Shineway Wins Strong Shareholder Backing at 2026 AGM
May 28, 2026
China Shineway Pharmaceutical Group reported that shareholders approved all resolutions at its annual general meeting held on 28 May 2026, including adoption of the 2025 audited financial statements and re-election of key board members. The compan...
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...
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.