China Shineway Pharmaceutical Group Limited (2877) AI Stock Analysis

• Market Cap: HK$5.38B
• Dividend Yield: 8.16%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.58
• Revenue Growth: -18.09%
• EPS Growth: -15.08%
• Country: HK
• Employees: 3,220
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.21
• Shares Outstanding: 827,000,000
• 10 Day Avg. Volume: 1,152,251
• 30 Day Avg. Volume: 1,342,661
• PEG Ratio: -0.25
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.22
• 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

China Shineway Pharmaceutical Group Limited has a sturdy financial foundation, marked by high profitability and prudent balance sheet management. Despite a dip in revenue and missing cash flow data, its valuation is compelling with a low P/E ratio and high dividend yield. However, technical indicators point to bearish market momentum, which could pose short-term challenges. The stock's performance is likely to be influenced by management's ability to address revenue and cash flow concerns and market sentiment in the near future.

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

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, although the recent revenue decline and absence of cash flow data highlight areas for improvement. Continued vigilance in revenue management and cash flow reporting will be crucial for future growth.

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
	EBIT
842.60M	975.53M	713.58M	534.37M	422.40M
	EBITDA
1.00B	1.42B	1.10B	903.74M	620.04M
	Net Income Common Stockholders
840.05M	969.51M	722.77M	556.67M	295.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.49B	5.91B	5.05B	4.21B	3.95B
	Total Assets
10.04B	9.57B	8.23B	7.20B	7.21B
	Total Debt
346.53M	301.33M	7.44M	14.91M	392.14M
	Net Debt
-5.79B	-5.59B	-5.02B	-4.19B	-3.55B
	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: Negative
• Last Price: 7.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 7.36 is above the 20-day moving average (MA) of 7.27, below the 50-day MA of 7.74, and below the 200-day MA of 8.11, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of 16.71 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1093	76 Outperform	$66.00B	14.36	13.20%	5.99%	-9.60%	-27.18%
2877	70 Neutral	HK$5.38B	5.91	11.61%	8.16%	-18.09%	-15.08%
1179	68 Neutral	€83.42B	27.33	24.64%	4.52%	7.33%	-25.31%
1177	66 Neutral	$69.96B	36.85	6.14%	1.54%	7.63%	-24.23%
2196	65 Neutral	$61.60B	12.24	6.22%	1.97%	-2.82%	11.93%
3320	62 Neutral	€30.78B	8.47		5.65%	―	―
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.53%

China Shineway Pharmaceutical Group Limited Corporate Events

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.

China Shineway Announces Interim Dividend for FY2025

China Shineway Pharmaceutical Group Limited announced a first interim ordinary cash dividend of RMB 0.36 per share for the fiscal year ending December 31, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.07, with a payment date set for May 20, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

China Shineway Reports 2024 Revenue Decline Amid TCM Industry Challenges

China Shineway Pharmaceutical Group Limited reported a 16.4% decrease in sales revenue for 2024, with a net profit decline of 13.4%, reflecting challenges in the TCM industry due to policy changes and market competition. Despite these challenges, the company maintained stable profitability by optimizing production processes and enhancing market competitiveness. The TCM industry is poised for growth with national support and reforms, offering new opportunities for transformation and development.

China Shineway Pharmaceutical Schedules Board Meeting for Annual Results and Dividend Consideration

China Shineway Pharmaceutical Group Limited has announced a forthcoming board meeting scheduled for March 28, 2025, in Hong Kong. The meeting will address the approval of the company’s annual results for the year ending December 31, 2024, and the consideration of a dividend declaration. This announcement is significant for stakeholders as it indicates the company’s ongoing financial activities and potential shareholder returns.