China Shineway Pharmaceutical Group (SZSC:2877) Stock Valuation, Peer Comparison & Price Targets

Q: 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$8.41) is trading below our estimate of [[fair value]] (HK$30.59)

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 Ratio	5.3x
Earnings	CN¥1.10b
Market Cap	CN¥5.90b

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	0.007x
Enterprise Value/EBITDA	0.03x
PEG Ratio	0.6x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	9.8x
1666 Tong Ren Tang Technologies	9.3x	-0.2%	HK$6.5b
1681 Consun Pharmaceutical Group	7.7x	14.9%	HK$6.9b
3613 Beijing Tong Ren Tang Chinese Medicine	13.7x	16.5%	HK$6.8b
719 Shandong Xinhua Pharmaceutical	8.3x	n/a	HK$9.8b
2877 China Shineway Pharmaceutical Group	5.3x	8.3%	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 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market 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 Ratio	5.3x
Fair PE Ratio	10x

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	HK$8.41	HK$12.82 +52.4%	27.0%	HK$17.70	HK$9.99	n/a	3
Nov ’25	HK$9.23	HK$13.34 +44.5%	25.1%	HK$18.07	HK$10.95	n/a	3
Oct ’25	HK$9.28	HK$14.49 +56.1%	24.2%	HK$18.00	HK$10.95	n/a	4
Sep ’25	HK$8.75	HK$15.40 +76.0%	24.1%	HK$19.77	HK$11.00	n/a	4
Aug ’25	HK$8.15	HK$15.10 +85.2%	23.5%	HK$19.30	HK$10.99	n/a	4
Jul ’25	HK$7.69	HK$15.11 +96.5%	23.4%	HK$19.30	HK$11.00	n/a	4
Jun ’25	HK$8.36	HK$14.06 +68.2%	19.5%	HK$17.93	HK$11.95	n/a	3
May ’25	HK$9.26	HK$14.10 +52.3%	19.6%	HK$18.00	HK$12.00	n/a	3
Apr ’25	HK$9.73	HK$13.05 +34.1%	28.9%	HK$18.00	HK$8.86	n/a	3
Mar ’25	n/a	HK$11.84 0%	30.8%	HK$16.98	HK$8.91	n/a	3
Feb ’25	n/a	HK$12.42 0%	26.5%	HK$17.07	HK$8.95	n/a	4
Jan ’25	n/a	HK$12.46 0%	23.7%	HK$16.73	HK$9.50	n/a	4
Dec ’24	n/a	HK$12.46 0%	23.7%	HK$16.73	HK$9.50	n/a	4
Nov ’24	n/a	HK$12.92 0%	20.7%	HK$16.88	HK$10.00	HK$9.23	4
Oct ’24	n/a	HK$12.92 0%	20.7%	HK$16.88	HK$10.00	HK$9.28	4
Sep ’24	n/a	HK$12.92 0%	20.7%	HK$16.88	HK$10.00	HK$8.75	4
Aug ’24	n/a	HK$12.78 0%	6.2%	HK$13.58	HK$11.99	HK$8.15	2
Jul ’24	n/a	HK$12.78 0%	6.2%	HK$13.58	HK$11.99	HK$7.69	2
Jun ’24	n/a	HK$10.82 0%	23.8%	HK$14.13	HK$7.84	HK$8.36	3
May ’24	n/a	HK$10.82 0%	23.8%	HK$14.13	HK$7.84	HK$9.26	3
Apr ’24	n/a	HK$10.82 0%	23.8%	HK$14.13	HK$7.84	HK$9.73	3
Mar ’24	n/a	HK$10.87 0%	24.8%	HK$14.52	HK$8.09	n/a	3
Feb ’24	n/a	HK$10.87 0%	24.8%	HK$14.52	HK$8.09	n/a	3
Jan ’24	n/a	HK$9.45 0%	34.5%	HK$13.99	HK$6.55	n/a	3
Dec ’23	n/a	HK$9.45 0%	34.5%	HK$13.99	HK$6.55	n/a	3
Nov ’23	n/a	HK$6.85 0%	5.1%	HK$7.20	HK$6.50	n/a	2

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 Valuation