Company Coverage
China Shineway Pharmaceutical (2877 HK): 1H26: Results Miss; Higher Dividend Cushions 2026 Forecast Cut
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$8.41
HK$8.50
1.1%
HK$9.00
Analyst
Analyst
Highlights
- Shineway’s 1H26 revenue and net profit declined 28.5% and 23.7% yoy respectively, missing our 2026 estimates. It remains conservative on 2026-27 growth amid persistent policy and economic headwinds, with pipeline approvals underpinning recovery from 2028.
- It raised the second interim dividend to Rmb0.80/share, resulting in a 123% payout ratio in 2026, though without a formal policy commitment.
- We cut our 2026 revenue and net profit growth estimates to -25.2% and -20.5% yoy. Maintain HOLD and cut target price to HK$8.50.
Analysis
1H26 results missed. China Shineway Pharmaceutical’s (Shineway) 1H26 revenue dropped 28.5% yoy to Rmb1.18b, while net profit declined 23.7% yoy to Rmb469.2m. The 1H26 results missed our estimated revenue and net profit growth of -3.2% and 0.6% yoy for 2026, respectively. The company declared a second interim dividend for 2026 at Rmb0.80/share. Its 2026 dividend totalled Rmb1.23/share, representing a payout ratio of 123%.
Highlights
- Shineway’s 1H26 revenue and net profit declined 28.5% and 23.7% yoy respectively, missing our 2026 estimates. It remains conservative on 2026-27 growth amid persistent policy and economic headwinds, with pipeline approvals underpinning recovery from 2028.
- It raised the second interim dividend to Rmb0.80/share, resulting in a 123% payout ratio in 2026, though without a formal policy commitment.
- We cut our 2026 revenue and net profit growth estimates to -25.2% and -20.5% yoy. Maintain HOLD and cut target price to HK$8.50.
Analysis
1H26 results missed. China Shineway Pharmaceutical’s (Shineway) 1H26 revenue dropped 28.5% yoy to Rmb1.18b, while net profit declined 23.7% yoy to Rmb469.2m. The 1H26 results missed our estimated revenue and net profit growth of -3.2% and 0.6% yoy for 2026, respectively. The company declared a second interim dividend for 2026 at Rmb0.80/share. Its 2026 dividend totalled Rmb1.23/share, representing a payout ratio of 123%.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$8.41
HK$8.50
1.1%
HK$9.00
Analyst
Analyst
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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