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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