China Shineway Pharmaceutical Group (SEHK:2877) - Share price, News & Analysis

2877 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

2877 Stock Overview

Rewards

Trading at 76.7% below our estimate of its fair value

Earnings are forecast to grow 10.28% per year

Earnings grew by 88.7% over the past year

Risk Analysis

Unstable dividend track record

China Shineway Pharmaceutical Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Shineway Pharmaceutical Group
Historical stock prices
Current Share Price	HK$6.43
52 Week High	HK$9.93
52 Week Low	HK$5.50
Beta	0.83
1 Month Change	9.17%
3 Month Change	-2.13%
1 Year Change	-15.62%
3 Year Change	-9.18%
5 Year Change	-18.61%
Change since IPO	33.26%

Recent News & Updates

Mar 31

China Shineway Pharmaceutical Group Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The yearly results for China Shineway Pharmaceutical Group Limited ( HKG:2877 ) were released last week, making it a...

Shareholder Returns

	2877	HK Pharmaceuticals	HK Market
7D	3.4%	8.4%	2.1%
1Y	-15.6%	-43.3%	-23.3%

Return vs Industry: 2877 exceeded the Hong Kong Pharmaceuticals industry which returned -43.3% over the past year.

Return vs Market: 2877 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2877's price volatile compared to industry and market?
2877 volatility
2877 Average Weekly Movement	5.4%
Pharmaceuticals Industry Average Movement	6.1%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 2877 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2877's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	3,674	n/a	https://www.shineway.com

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 medicines in the form of soft capsules, granules, and injections, as well as TCM Formula Granules in various therapeutic areas, including cardio-cerebrovascular, anti-viral, orthopedics, pediatrics, gynecology, and gastroenterology. It also trades in agricultural products.

China Shineway Pharmaceutical Group Fundamentals Summary

How do China Shineway Pharmaceutical Group's earnings and revenue compare to its market cap?
2877 fundamental statistics
Market Cap	CN¥4.14b
Earnings (TTM)	CN¥556.67m
Revenue (TTM)	CN¥3.22b

7.4x

P/E Ratio

1.3x

P/S Ratio

Is 2877 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2877 income statement (TTM)
Revenue	CN¥3.22b
Cost of Revenue	CN¥813.21m
Gross Profit	CN¥2.41b
Other Expenses	CN¥1.85b
Earnings	CN¥556.67m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.74
Gross Margin	74.77%
Net Profit Margin	17.27%
Debt/Equity Ratio	0%

How did 2877 perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

53%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2877 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2877?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2877. This is calculated by dividing 2877's market cap by their current preferred multiple.
What is 2877's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥4.14b

2877 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does 2877's PE Ratio compare to its peers?

2877 PE Ratio vs Peers

The above table shows the PE ratio for 2877 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	7.7x

Forward PE

Price-To-Earnings vs Peers: 2877 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

How does 2877's PE Ratio compare vs other companies in the Hong Kong Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 2877 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the Hong Kong Pharmaceuticals industry average (9.6x)

Price to Earnings Ratio vs Fair Ratio

What is 2877's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2877 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.4x
Fair PE Ratio	11.8x

Price-To-Earnings vs Fair Ratio: 2877 is good value based on its Price-To-Earnings Ratio (7.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Share Price vs Fair Value

What is the Fair Price of 2877 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2877 (HK$6.43) is trading below our estimate of fair value (HK$27.57)

Significantly Below Fair Value: 2877 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 2877 is good value based on its PEG Ratio (0.7x)

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Future Growth

How is China Shineway Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2877's forecast earnings growth (10.3% per year) is above the savings rate (1.5%).

Earnings vs Market: 2877's earnings (10.3% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 2877's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2877's revenue (13.1% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 2877's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 2877's Return on Equity is forecast to be low in 3 years time (11.9%).

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Past Performance

How has China Shineway Pharmaceutical Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-5.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2877 has high quality earnings.

Growing Profit Margin: 2877's current net profit margins (17.3%) are higher than last year (11.1%).

Past Earnings Growth Analysis

Earnings Trend: 2877's earnings have declined by 5.6% per year over the past 5 years.

Accelerating Growth: 2877's earnings growth over the past year (88.7%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: 2877 earnings growth over the past year (88.7%) exceeded the Pharmaceuticals industry 16.1%.

Return on Equity

High ROE: 2877's Return on Equity (9.4%) is considered low.

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Financial Health

How is China Shineway Pharmaceutical Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2877's short term assets (CN¥5.7B) exceed its short term liabilities (CN¥1.1B).

Long Term Liabilities: 2877's short term assets (CN¥5.7B) exceed its long term liabilities (CN¥204.1M).

Debt to Equity History and Analysis

Debt Level: 2877 is debt free.

Reducing Debt: 2877 had no debt 5 years ago.

Debt Coverage: 2877 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2877 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is China Shineway Pharmaceutical Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.12%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2877's dividend (7.12%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 2877's dividend (7.12%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 2877's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2877's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.9%), 2877's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.3%), 2877's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

11.7yrs

Average board tenure

CEO

China Shineway Pharmaceutical Group has no CEO, or we have no data on them.

Board Members

Experienced Board: 2877's board of directors are seasoned and experienced ( 11.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31