China Shineway Pharmaceutical Group Limited

SEHK:2877 Stock Report

Market Cap: HK$6.4b

China Shineway Pharmaceutical Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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$8.41) is trading below our estimate of fair value (HK$30.59)

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

Key Valuation Metric

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

Key metric: As 2877 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2877. This is calculated by dividing 2877's market cap by their current earnings.
What is 2877's PE Ratio?
PE Ratio5.3x
EarningsCN¥1.10b
Market CapCN¥5.90b

Price to Earnings Ratio vs Peers

How does 2877's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.8x
1666 Tong Ren Tang Technologies
9.3x-0.2%HK$6.5b
1681 Consun Pharmaceutical Group
7.7x14.9%HK$6.9b
3613 Beijing Tong Ren Tang Chinese Medicine
13.7x16.5%HK$6.8b
719 Shandong Xinhua Pharmaceutical
8.3xn/aHK$9.8b
2877 China Shineway Pharmaceutical Group
5.3x8.3%HK$6.4b

Price-To-Earnings vs Peers: 2877 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (9.8x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
2877 5.3xIndustry Avg. 8.2xNo. of Companies7PE0612182430+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2877 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the Hong Kong Pharmaceuticals industry average (8.2x).

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 Ratio5.3x
Fair PE Ratio10x

Price-To-Earnings vs Fair Ratio: 2877 is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2877 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$8.41
HK$12.82
+52.4%
27.0%HK$17.70HK$9.99n/a3
Nov ’25HK$9.23
HK$13.34
+44.5%
25.1%HK$18.07HK$10.95n/a3
Oct ’25HK$9.28
HK$14.49
+56.1%
24.2%HK$18.00HK$10.95n/a4
Sep ’25HK$8.75
HK$15.40
+76.0%
24.1%HK$19.77HK$11.00n/a4
Aug ’25HK$8.15
HK$15.10
+85.2%
23.5%HK$19.30HK$10.99n/a4
Jul ’25HK$7.69
HK$15.11
+96.5%
23.4%HK$19.30HK$11.00n/a4
Jun ’25HK$8.36
HK$14.06
+68.2%
19.5%HK$17.93HK$11.95n/a3
May ’25HK$9.26
HK$14.10
+52.3%
19.6%HK$18.00HK$12.00n/a3
Apr ’25HK$9.73
HK$13.05
+34.1%
28.9%HK$18.00HK$8.86n/a3
Mar ’25HK$8.62
HK$11.84
+37.4%
30.8%HK$16.98HK$8.91n/a3
Feb ’25HK$7.73
HK$12.42
+60.7%
26.5%HK$17.07HK$8.95n/a4
Jan ’25HK$7.27
HK$12.46
+71.3%
23.7%HK$16.73HK$9.50n/a4
Dec ’24HK$6.80
HK$12.46
+83.2%
23.7%HK$16.73HK$9.50n/a4
Nov ’24HK$6.97
HK$12.92
+85.4%
20.7%HK$16.88HK$10.00HK$9.234
Oct ’24HK$7.83
HK$12.92
+65.0%
20.7%HK$16.88HK$10.00HK$9.284
Sep ’24HK$7.75
HK$12.92
+66.7%
20.7%HK$16.88HK$10.00HK$8.754
Aug ’24HK$8.30
HK$12.78
+54.0%
6.2%HK$13.58HK$11.99HK$8.152
Jul ’24HK$8.83
HK$12.78
+44.8%
6.2%HK$13.58HK$11.99HK$7.692
Jun ’24HK$8.52
HK$10.82
+27.0%
23.8%HK$14.13HK$7.84HK$8.363
May ’24HK$8.17
HK$10.82
+32.5%
23.8%HK$14.13HK$7.84HK$9.263
Apr ’24HK$7.36
HK$10.82
+47.1%
23.8%HK$14.13HK$7.84HK$9.733
Mar ’24HK$6.97
HK$10.87
+55.9%
24.8%HK$14.52HK$8.09HK$8.623
Feb ’24HK$7.29
HK$10.87
+49.1%
24.8%HK$14.52HK$8.09HK$7.733
Jan ’24HK$7.59
HK$9.45
+24.5%
34.5%HK$13.99HK$6.55HK$7.273
Dec ’23HK$7.11
HK$9.45
+32.9%
34.5%HK$13.99HK$6.55HK$6.803
Nov ’23HK$4.83
HK$6.85
+41.8%
5.1%HK$7.20HK$6.50HK$6.972

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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China Shineway Pharmaceutical Group

HK$6.4b

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.

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7D

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1Y

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