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

2877 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (10.4x).

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

2877 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Hong Kong Pharmaceuticals industry average (8.6x).

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 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the estimated Fair Price-To-Earnings Ratio (10x).

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

2877 (HK$9.72) is trading below our estimate of [[fair value]] (HK$30.2)

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

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

2877 Stock Overview

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. More details

2877 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

Rewards

Trading at 67.8% below our estimate of its fair value

Earnings are forecast to grow 7.06% per year

Earnings grew by 25.1% over the past year

Trading at good value compared to peers and industry

Risk Analysis

Unstable dividend track record

My Notes

Capture your thoughts, links and company narrative

China Shineway Pharmaceutical Group Limited Competitors

Consun Pharmaceutical Group

SEHK:1681

HK$6.8b

Tong Ren Tang Technologies

SEHK:1666

HK$6.5b

Luye Pharma Group

SEHK:2186

HK$8.2b

Beijing Tong Ren Tang Chinese Medicine

SEHK:3613

HK$7.2b

Price History & Performance

Summary of share price highs, lows and changes for China Shineway Pharmaceutical Group
Historical stock prices
Current Share Price	HK$9.72
52 Week High	HK$10.76
52 Week Low	HK$7.58
Beta	0.82
1 Month Change	0.10%
3 Month Change	4.74%
1 Year Change	n/a
3 Year Change	42.31%
5 Year Change	32.79%
Change since IPO	-31.93%

Recent updates

Shareholder Returns

	2877	HK Pharmaceuticals	HK Market
7D	-0.2%	0.2%	1.1%
1Y	n/a	-9.6%	17.6%

Return vs Industry: Insufficient data to determine how 2877 performed against the Hong Kong Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how 2877 performed against the Hong Kong Market.

Price Volatility

Is 2877's price volatile compared to industry and market?
2877 volatility
2877 Average Weekly Movement	6.2%
Pharmaceuticals Industry Average Movement	6.3%
Market Average Movement	8.5%
10% most volatile stocks in HK Market	17.8%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 2877 has not had significant price volatility in the past 3 months compared to the Hong Kong market.

Volatility Over Time: 2877's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	3,232	n/a	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 Chinese medicines in the form of injection, soft capsules, and granules; tablets, pills, oral liquid, and powder; and traditional Chinese medicine granules in various therapeutic areas, including respiratory system disease, nervous system, digestive system disease, cardiovascular and cerebrovascular, orthopedics, pediatrics, and other areas, as well as medication for strengthening the body. It is also involved in the trading of agricultural products; and research and development of Chinese pharmaceutical products.

China Shineway Pharmaceutical Group Limited Fundamentals Summary

How do China Shineway Pharmaceutical Group's earnings and revenue compare to its market cap?
2877 fundamental statistics
Market cap	HK$7.34b
Earnings (TTM)	HK$1.17b
Revenue (TTM)	HK$4.47b

6.3x

P/E Ratio

1.6x

P/S Ratio

Is 2877 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
2877 income statement (TTM)
Revenue	CN¥4.20b
Cost of Revenue	CN¥1.04b
Gross Profit	CN¥3.16b
Other Expenses	CN¥2.06b
Earnings	CN¥1.10b

Last Reported Earnings

Jun 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	1.46
Gross Margin	75.21%
Net Profit Margin	26.27%
Debt/Equity Ratio	4.5%

How did 2877 perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

37%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/30 16:11
End of Day Share Price	2024/12/30 00:00
Earnings	2024/06/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

China Shineway Pharmaceutical Group Limited is covered by 28 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Derrick Sun	BNP Paribas Securities (Asia)
Yue-Kwong Lui	BOCOM International Securities Limited
Ying Shao	BofA Global Research