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China Shineway Pharmaceutical Group Limited (2877) AI Stock Analysis

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HK:2877

China Shineway Pharmaceutical Group Limited

(HKEX:2877)

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Rating:81Outperform
Price Target:HKD 9.50â–²(26.58% Upside)
Action:reiterated
Date:09/10/26

The score is driven primarily by strong financial quality (high margins and very low leverage) and attractive valuation (low P/E and high dividend yield). Technicals are supportive with the price above major moving averages, but the elevated RSI and recent revenue contraction temper the overall rating.

Positive Factors
High ProfitabilitySustained high gross and operating margins indicate strong product economics in the company’s proprietary TCM portfolio. This profitability provides resilience against cost pressure and supports continued investment in research, manufacturing quality, hospital access, and distribution over the coming quarters.
Negative Factors
Revenue ContractionThe sustained weakening in revenue momentum signals pressure on product volumes, pricing, or mix across the TCM portfolio. If contraction persists, lower operating scale could reduce the company’s ability to absorb fixed manufacturing, quality-control, and commercial costs.

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

-15%-10%-5%0%5%10%15%20%HK:2877+14.46%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 5.67B
Dividend Yield
16.66%
Average Volume (3M)
1.48M
Price to Earnings (P/E)
6.1
Beta (1Y)
0.50
Revenue Growth
-17.74%
EPS Growth
1.12%
Country
Hong Kong
Employees
2,656
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - Specialty & Generic

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 ran...

How the Company Makes Money

China Shineway Pharmaceutical Group Limited makes money mainly by manufacturing and selling pharmaceutical products, with its revenue primarily generated from the sale of its proprietary modernized TCM products. The company’s key revenue streams are...

China Shineway Pharmaceutical Group Limited Financial Statement Overview

Summary

Strong profitability (gross margin ~72%–75%, EBIT margin 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 growth momentum with revenue declining in 2025 (~-8.7%) and some margin softening versus the 2023 peak; cash flow is positive and improving but shows volatility and limited 2025 coverage metric visibility.

Income Statement

76Positive

Balance Sheet

90Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.65B3.14B3.78B4.52B3.95B3.22B
Gross Profit1.89B2.27B2.83B3.39B2.94B2.41B
EBITDA792.57M752.95M904.73M1.42B1.10B903.74M
Net Income797.97M949.95M840.05M969.51M722.77M556.67M
Balance Sheet
Total Assets10.45B10.78B10.04B9.57B8.23B7.20B
Cash, Cash Equivalents and Short-Term Investments7.54B7.57B6.49B5.91B5.05B4.21B
Total Debt312.23M335.05M346.53M301.33M7.44M14.91M
Total Liabilities2.25B2.72B2.57B2.54B1.85B1.30B
Stockholders Equity8.20B8.07B7.47B7.03B6.38B5.90B
Cash Flow
Free Cash Flow891.41M974.13M823.02M788.31M980.21M609.52M
Operating Cash Flow1.07B1.17B963.13M932.63M1.11B703.15M
Investing Cash Flow73.99M222.03M-272.11M-49.54M-45.42M395.01M
Financing Cash Flow-443.05M-375.01M-392.48M-26.74M-250.04M-828.93M

China Shineway Pharmaceutical Group Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price7.50

Price Trends

50DMA7.06Positive
100DMA6.66Positive
200DMA6.84Positive

Market Momentum

MACD0.07Positive
RSI59.04Neutral
STOCH39.30Neutral

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 7.50 is above the 20-day moving average (MA) of 7.38, above the 50-day MA of 7.06, and above the 200-day MA of 6.84, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, 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

HK:2877 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2877HK:287781OutperformHKD 5.67B6.079.81%16.66%-17.74%1.12%
HK:2633HK:263370OutperformHKD 1.78B6.1913.26%9.67%-0.47%-0.40%
HK:0512HK:051259NeutralHKD 15.30B13.456.61%3.92%7.35%-45.49%
HK:0719HK:071954NeutralHKD 8.28B37.234.32%3.22%-0.52%-37.60%
HK:3933HK:393354NeutralHKD 13.46B20.803.12%4.38%-12.86%-83.10%
HK:0570HK:057053NeutralHKD 5.89B-4.81-4.98%0.30%-15.80%-298.94%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%

* Healthcare Sector Average

Performance Comparison

-40%-20%0%20%HK:2877HK:3933HK:0570HK:2633HK:0512HK:0719Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:2877 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2877China Shineway Pharmaceutical Group Limited7.501.1317.67%
HK:3933The United Laboratories International6.83-5.69-45.46%
HK:0570China Traditional Chinese Medicine Holdings Co 1.17-1.16-49.79%
HK:2633Jacobson Pharma Corporation Limited0.94-0.42-30.74%
HK:0512Grand Pharmaceutical Group Limited4.31-4.18-49.26%
HK:0719Shandong Xinhua Pharmaceutical Company Limited Class H5.35-1.42-20.94%

China Shineway Pharmaceutical Group Limited Corporate Events

China Shineway Board to Weigh Special Interim Dividend

Sep 8, 2026

China Shineway Pharmaceutical Group Limited has scheduled a board meeting for 18 September 2026 to consider declaring a special interim dividend for its shareholders. The move signals the company’s intention to return additional capital to inve...

China Shineway Pharma Announces Second Interim Dividend for Fiscal 2026

Aug 27, 2026

China Shineway Pharmaceutical Group Limited, a Hong Kong-listed pharmaceutical company under stock code 02877, operates in the healthcare sector by issuing equity to investors in renminbi with corresponding Hong Kong dollar settlements. Its board is...

Shineway Profit Falls Amid TCM Headwinds but Dividend Payout Stays Strong

Aug 27, 2026

China Shineway reported a sharp deterioration in its interim performance for the six months ended 30 June 2026 as the TCM industry came under pressure from medical insurance cost controls, centralized procurement, weak terminal demand and destocking...

China Shineway to Review Interim Results and Consider Dividend at August Board Meeting

Aug 17, 2026

China Shineway Pharmaceutical Group Limited has scheduled a board meeting for 27 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The board will also consider the declaration of a dividend at the meeting, a...

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: Sep 10, 2026