HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China Shineway Pharmaceutical (2877.HK) - Performance Pressure Is About to Emerge

China Shineway Pharmaceutical (2877.HK) - 24H1 Looks Challenging, but Things Get Better in 24H2

China Shineway Pharmaceutical (2877.HK) - Negative Growth in 24H1 Seems Inevitable

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Equity Bottom-Up

China Shineway Pharmaceutical / Equity Bottom-Up

<ul>
<li>Shineway's revenue experienced negative growth in 24H1 as expected, but net profit performance beat expectations (up 27.5% YoY). However, if excluding those one-time gains, net profit was down 14% YoY.</li>
<li>In 24H2, Shineway’s performance is expected to pick up, and YoY revenue growth 2024 full-year would return to positive (e.g. 5-10% YoY). The only concern is TCM formula granule VBP.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-shineway-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:6241:1" rel="noopener">China Shineway Pharmaceutical (2877 HK)'s </a>overall financial position is healthy.  However, even with large cash balance, the current dividend is not satisfactory, which has more room to improve.</li>
</ul>


Shineway's revenue experienced negative growth in 24H1 as expected, but net profit performance beat expectations (up 27.5% YoY). However, if excluding those one-time gains, net profit was down 14% YoY.
In 24H2, Shineway’s performance is expected to pick up, and YoY revenue growth 2024 full-year would return to positive (e.g. 5-10% YoY). The only concern is TCM formula granule VBP.

China Shineway Pharmaceutical (2877 HK)'s overall financial position is healthy.  However, even with large cash balance, the current dividend is not satisfactory, which has more room to improve.


China Shineway Pharmaceutical (2877.HK) - Performance Would Pick up in 24H2