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China Shineway Pharmaceutical Group Limited (HK:2877)
:2877
Hong Kong Market
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China Shineway Pharmaceutical Group Limited (2877) AI Stock Analysis

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HK:2877

China Shineway Pharmaceutical Group Limited

(2877)

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Outperform 81 (OpenAI - 5.2)
Rating:81Outperform
Price Target:
HK$11.50
▲(34.03% Upside)
Action:ReiteratedDate: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 and Durable Profitability
Sustained very high gross and healthy operating/net margins indicate persistent pricing power and efficient production for proprietary medicines. This structure supports long-term cash generation, funding for R&D and dividends, and resilience to moderate demand cycles without leveraging the balance sheet.
Negative Factors
Weakening Revenue Trend
Sustained top-line contraction reduces operating leverage and risks reversing margin and cash generation gains. If demand for core PCMs continues to shrink, management will face harder choices on pricing, marketing spend, or restructuring that could permanently lower growth potential.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Durable Profitability
Sustained very high gross and healthy operating/net margins indicate persistent pricing power and efficient production for proprietary medicines. This structure supports long-term cash generation, funding for R&D and dividends, and resilience to moderate demand cycles without leveraging the balance sheet.
Read all positive factors

China Shineway Pharmaceutical Group Limited (2877) vs. iShares MSCI Hong Kong ETF (EWH)

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
Strong profitability (gross margins ~72%–75%, EBIT margins low-to-mid 20s; net margin ~30% in 2025) and an exceptionally conservative balance sheet (debt-to-equity ~0.04–0.05) support a high score. The key offset is weakening top-line momentum, with revenue down in 2025 (~8.7%) and some margin softening versus 2023.
Income Statement
76
Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.05B3.78B4.52B3.95B3.22B
Gross Profit2.21B2.83B3.39B2.94B2.41B
EBITDA733.46M1.00B1.42B1.10B903.74M
Net Income925.36M840.05M969.51M722.77M556.67M
Balance Sheet
Total Assets10.78B10.04B9.57B8.23B7.20B
Cash, Cash Equivalents and Short-Term Investments7.57B6.49B5.91B5.05B4.21B
Total Debt335.05M346.53M301.33M7.44M14.91M
Total Liabilities2.72B2.57B2.54B1.85B1.30B
Stockholders Equity8.07B7.47B7.03B6.38B5.90B
Cash Flow
Free Cash Flow974.13M823.02M788.31M980.21M609.52M
Operating Cash Flow1.17B963.13M932.63M1.11B703.15M
Investing Cash Flow222.03M-272.11M-49.54M-45.42M395.01M
Financing Cash Flow-375.01M-392.48M-26.74M-250.04M-828.93M

China Shineway Pharmaceutical Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.58
Price Trends
50DMA
9.41
Positive
100DMA
9.14
Positive
200DMA
8.75
Positive
Market Momentum
MACD
0.20
Negative
RSI
60.84
Neutral
STOCH
81.50
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 9.37, below the 50-day MA of 9.41, and below the 200-day MA of 8.75, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 60.84 is Neutral, neither overbought nor oversold. The STOCH value of 81.50 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$1.36B2.9110.88%2.39%7.94%
81
Outperform
HK$7.31B6.3111.90%5.80%-17.03%12.82%
69
Neutral
HK$2.17B5.1312.91%15.40%-1.88%17.57%
67
Neutral
HK$779.10M3.5812.80%7.52%-9.66%16.17%
58
Neutral
HK$9.43B30.685.62%4.47%3.34%-39.43%
54
Neutral
HK$8.61B-28.37-1.64%3.66%-10.68%-737.07%
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:2877
China Shineway Pharmaceutical Group Limited
9.78
2.58
35.83%
HK:0570
China Traditional Chinese Medicine Holdings Co
1.67
-0.26
-13.61%
HK:8049
Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd. Class H
2.45
0.81
49.12%
HK:0239
Pak Fah Yeow International Limited
2.50
0.41
19.62%
HK:2633
Jacobson Pharma Corporation Limited
1.13
<0.01
0.89%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
6.18
0.88
16.69%

China Shineway Pharmaceutical Group Limited Corporate Events

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&#8217; report and the independent auditor&#821...
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.Date of analysis: Apr 26, 2026