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Simcere Pharmaceutical Group Limited
(2096)
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Rating:69Neutral
Price Target:
HK$14.00
▲(20.69% Upside)
Action:Reiterated
Date:07/03/26
The score is primarily supported by strong financial performance (high margins, improved 2025 growth, and low leverage), partially offset by historically volatile free cash flow. Technicals are a secondary drag due to a still-weak longer-term trend (below 50/100/200-day averages and negative MACD), while valuation is moderately supportive (P/E 17.62 with ~1.92% yield).
Positive Factors
High Gross Margin
An ~82% gross margin is a durable structural advantage in pharmaceuticals: it supports sustained internal cash generation and funds R&D and clinical programs. Such margin levels indicate pricing power for branded drugs and provide a long-term cushion versus reimbursement or cost shocks.
Negative Factors
Inconsistent Free Cash Flow
Intermittent negative free cash flow years and uneven cash conversion reduce predictability of internally funded R&D, dividends, or M&A. Despite improved 2025 OCF and positive FCF, the historical volatility implies potential reliance on external funding in adverse periods.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
An ~82% gross margin is a durable structural advantage in pharmaceuticals: it supports sustained internal cash generation and funds R&D and clinical programs. Such margin levels indicate pricing power for branded drugs and provide a long-term cushion versus reimbursement or cost shocks.
Read all positive factors
Simcere Pharmaceutical Group Limited (2096) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$29.71B
Dividend Yield1.84%
Average Volume (3M)6.10M
Price to Earnings (P/E)15.7
Beta (1Y)0.68
Revenue Growth27.24%
EPS Growth79.48%
CountryHK
Employees7,038
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,568,198,700
10 Day Avg. Volume6,078,800
30 Day Avg. Volume6,104,030
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)2.84
Price to Sales (P/S)3.46
P/FCF Ratio23.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$18.69Price Target Upside61.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Simcere Pharmaceutical Group Limited Business Overview & Revenue Model
Company Description
Simcere Pharmaceutical Group Limited is a Chinese entity engaged in the comprehensive process of discovering, developing, manufacturing, and commercializing pharmaceutical products. These medicines are distributed to various clients, including dis...
How the Company Makes Money
Simcere primarily makes money by selling pharmaceutical products, generating revenue when its prescription drugs are distributed to hospitals, pharmacies, and other healthcare channels in China. Key revenue streams typically include: (1) sales of ...
Simcere Pharmaceutical Group Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.73B | 6.64B | 6.61B | 6.32B | 5.00B |
| Gross Profit | 6.31B | 5.32B | 4.98B | 5.00B | 3.92B |
| EBITDA | 1.72B | 1.35B | 1.08B | 815.38M | 422.45M |
| Net Income | 1.34B | 733.16M | 714.76M | 930.87M | 1.51B |
Balance Sheet | |||||
| Total Assets | 14.73B | 11.51B | 10.85B | 10.78B | 10.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.62B | 1.94B | 2.02B | 2.62B | 2.18B |
| Total Debt | 1.20B | 1.21B | 1.43B | 1.51B | 1.64B |
| Total Liabilities | 5.31B | 4.44B | 3.63B | 3.64B | 3.70B |
| Stockholders Equity | 9.41B | 7.07B | 7.22B | 7.13B | 6.44B |
Cash Flow | |||||
| Free Cash Flow | 1.15B | 628.54M | -828.81M | 676.71M | -411.46M |
| Operating Cash Flow | 2.01B | 1.39B | 151.05M | 1.35B | -201.97M |
| Investing Cash Flow | -1.33B | -1.05B | 1.09B | 68.31M | -435.50M |
| Financing Cash Flow | 894.39M | -407.40M | -894.83M | -753.68M | -1.62B |
Simcere Pharmaceutical Group Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$21.64B | 22.56 | 12.35% | ― | 117.39% | ― | |
69 Neutral | HK$29.71B | 15.74 | 16.54% | 1.84% | 27.24% | 79.48% | |
64 Neutral | HK$36.64B | 34.72 | 20.41% | ― | 32.63% | 8.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | HK$9.70B | -19.27 | -43.54% | ― | 116.67% | -0.42% | |
46 Neutral | HK$22.71B | -13.73 | -27.40% | ― | 5.38% | 16.86% | |
46 Neutral | HK$33.50B | -73.86 | -7.32% | ― | 34.83% | 58.94% |
* Healthcare Sector Average
HK:2096
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Simcere Pharmaceutical Group Limited Corporate Events
Simcere Stroke Drug SANBEXIN Added to China’s 2026 Essential Medicines List
Jul 9, 2026
Simcere Pharmaceutical Group announced that its innovative stroke therapy SANBEXIN, an Edaravone and Dexborneol concentrated solution for injection, has been added to China’s 2026 National Essential Medicines List. The listing obliges public...
Simcere Shareholders Approve Dividend, Board Mandates at 2026 AGM
Jun 12, 2026
Simcere Pharmaceutical Group Limited reported that all resolutions put to shareholders at its annual general meeting on 12 June 2026 were approved by poll, including adoption of the 2025 financial statements and re‑election of key executive ...
Simcere Declares Final Dividend for 2025 with July Payout to Shareholders
Jun 12, 2026
Simcere Pharmaceutical Group Limited has declared a final ordinary dividend of RMB 0.18 per share for the financial year ended 31 December 2025, with shareholder approval obtained on 12 June 2026. The dividend for Hong Kong shareholders will be pa...
Simcere Wins NMPA Green Light for PD-1/VEGF Bispecific Cancer Therapy
Jun 12, 2026
Simcere Pharmaceutical Group Limited has received clinical trial approval from China’s National Medical Products Administration for SIM0689, a self-developed bispecific antibody that targets PD-1 and VEGF and is intended for treating advance...
Simcere Secures Exclusive China Rights to PrimeGenX’s Pumecitinib Gel for Dermatology
Jun 1, 2026
Simcere Pharmaceutical Group has entered into an exclusive promotion service agreement with biotechnology firm PrimeGenX Therapeutics to market Pumecitinib Gel for all dermatology indications in Mainland China, Hong Kong and Macau. The deal comes ...
Simcere sets June 2026 AGM to approve dividend, board re-elections and share issue mandate
May 21, 2026
Simcere Pharmaceutical Group Limited has called its annual general meeting for June 12, 2026 in Shanghai, where shareholders will vote on the adoption of the company’s 2025 audited financial statements and related directors’ and audito...
Simcere Wins NMPA Nod to Start Clinical Trials of Novel Oncology ADC SIM0613
May 5, 2026
Simcere Pharmaceutical Group has received approval from China’s National Medical Products Administration to begin clinical trials of SIM0613, an LRRC15-targeting antibody-drug conjugate for advanced solid tumors, marking a key milestone for ...
Simcere Wins NMPA Nod to Review Rademikibart NDA for Atopic Dermatitis
Apr 30, 2026
Simcere Pharmaceutical Group said the National Medical Products Administration has accepted its resubmitted New Drug Application for Rademikibart, an innovative monoclonal antibody targeting IL-4Rα for the treatment of atopic dermatitis in ad...
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.