SEHK:2877

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

China Shineway Pharmaceutical Group

Executive Summary

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.


Snowflake Analysis

Excellent balance sheet average dividend payer.

Share Price & News

How has China Shineway Pharmaceutical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2877 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

2877

-3.5%

HK Pharmaceuticals

0.8%

HK Market


1 Year Return

-8.3%

2877

26.6%

HK Pharmaceuticals

6.9%

HK Market

Return vs Industry: 2877 underperformed the Hong Kong Pharmaceuticals industry which returned 23.5% over the past year.

Return vs Market: 2877 underperformed the Hong Kong Market which returned 6.6% over the past year.


Shareholder returns

2877IndustryMarket
7 Day1.3%-3.5%0.8%
30 Day2.7%-9.5%-0.5%
90 Day2.9%7.2%9.8%
1 Year-2.4%-8.3%29.0%26.6%11.3%6.9%
3 Year-12.9%-24.5%33.6%25.6%3.3%-7.7%
5 Year-25.9%-41.2%76.7%62.7%22.6%1.9%

Price Volatility Vs. Market

How volatile is China Shineway Pharmaceutical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Shineway Pharmaceutical Group undervalued compared to its fair value and its price relative to the market?

7.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2877 (HK$5.41) is trading above our estimate of fair value (HK$4.44)

Significantly Below Fair Value: 2877 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2877 is good value based on its PE Ratio (7.5x) compared to the HK Pharmaceuticals industry average (11x).

PE vs Market: 2877 is good value based on its PE Ratio (7.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 2877 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 2877 is good value based on its PB Ratio (0.6x) compared to the HK Pharmaceuticals industry average (1.2x).


Next Steps

Future Growth

How is China Shineway Pharmaceutical Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2877's forecast earnings growth (5.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 2877's earnings (5.6% per year) are forecast to grow slower than the Hong Kong market (18.7% per year).

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

Revenue vs Market: 2877's revenue (5.5% per year) is forecast to grow slower than the Hong Kong market (11.4% per year).

High Growth Revenue: 2877's revenue (5.5% 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 (9.3%).


Next Steps

Past Performance

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

-7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2877 has high quality earnings.

Growing Profit Margin: 2877's current net profit margins (18.6%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: 2877's earnings have declined by 7.3% per year over the past 5 years.

Accelerating Growth: 2877's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2877 had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (0.4%).


Return on Equity

High ROE: 2877's Return on Equity (8.7%) is considered low.


Next Steps

Financial Health

How is China Shineway Pharmaceutical Group's financial position?


Financial Position Analysis

Short Term Liabilities: 2877's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 2877's short term assets (CN¥5.2B) exceed its long term liabilities (CN¥176.4M).


Debt to Equity History and Analysis

Debt Level: 2877's debt to equity ratio (6.9%) is considered satisfactory.

Reducing Debt: 2877's debt to equity ratio has increased from 4% to 6.9% over the past 5 years.

Debt Coverage: 2877's debt is well covered by operating cash flow (92.4%).

Interest Coverage: 2877 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

6.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2877's dividend (6.6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 2877's dividend (6.6%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.76%).


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 increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.7%), 2877's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2877's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

9.9yrs

Average board tenure


CEO

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


Board Members

NamePositionTenureCompensationOwnership
Zhenjiang Li
Co-Founder & Executive Chairmanno dataCN¥4.68m71.79%
CN¥ 3.0b
Yunxia Xin
Co-Founder & Executive Director16.08yrsCN¥2.70m0.071%
CN¥ 2.9m
Huimin Li
Executive Director16.08yrsCN¥1.21m0.13%
CN¥ 5.5m
Zhong Chen
Executive Director5.67yrsCN¥1.81m0.037%
CN¥ 1.5m
Li Cheng
Independent Non Executive Director14.08yrsCN¥140.00kno data
Chun Yue Cheung
Independent Non-Executive Director1.58yrsCN¥140.00kno data
Guoan Luo
Independent Non-Executive Director3.17yrsCN¥140.00kno data

9.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 2877's board of directors are considered experienced (9.9 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.


Top Shareholders

Company Information

China Shineway Pharmaceutical Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Shineway Pharmaceutical Group Limited
  • Ticker: 2877
  • Exchange: SEHK
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$4.120b
  • Shares outstanding: 761.63m
  • Website: https://www.shineway.com

Number of Employees


Location

  • China Shineway Pharmaceutical Group Limited
  • Luan Cheng
  • Shijiazhuang
  • Hebei Province
  • 51430
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2877SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2004
C1SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
2877SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2004
2877SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2004

Biography

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 K ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 19:13
End of Day Share Price2020/08/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.