# China Resources Sanjiu Medical & Pharmaceutical (000999.SHE)

Canonical: https://gigainvestors.com/s/000999.SHE

Analysis as of: 2026-10-16T07:36:53.072Z. Financial observations: FY1997–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 25.92 per share; close as of 2026-10-15.

Estimated value: low CNY 34.79 per share, central CNY 48.30 per share, high CNY 56.17 per share. Buy at or below the central value CNY 48.30 per share. Valuation as of 2026-10-16T07:36:53.072Z; scenarios are not confidence intervals.

Expected annual return: 16.4% at the stated quote. About 16.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.13×

- FY2019: 0.17×

- FY2020: 0.15×

- FY2021: 0.16×

- FY2022: 0.16×

- FY2023: 0.15×

- FY2024: 0.16×

- FY2025: 0.15×

### moat: fail

- Recent gross margin fell 7.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 29.9%

- ROIC, second-lowest year: 24.4%

- Typical minus recent gross margin: 7.2 pp

- Typical gross margin (annual median): 60.0%

- Recent gross margin (lower of latest and 3-year median): 52.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: 17.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 22.8%

- FY2017: 28.6%

- FY2018: 30.1%

- FY2019: 32.9%

- FY2020: 28.2%

- FY2021: 29.7%

- FY2022: 24.4%

- FY2023: 37.7%

- FY2024: 40.0%

- FY2025: 34.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 14B

- Net income, five-year total: CNY 14B

- Return on incremental invested capital: 18.9%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, change between three-year averages: 9.6 pp

- Working capital / revenue, final three-year average: 43.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 0.99×

- FY2023: 0.99×

- FY2024: 1.00×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 28.6% vs 37.7%

- Per-share earnings: 0.75 to 2.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: CNY 6.0B

- Cumulative retained earnings: CNY 13B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.0%

- Per-share value change: CNY 1.25

- Per-share value, starting three-year median: CNY 0.75

- Per-share value, ending three-year median: CNY 2.00

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 12B

- Cumulative net income, 10 years: CNY 22B

- ROIC, first three-year median: 28.6%

- ROIC, last three-year median: 37.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.71

- FY2017: CNY 0.79

- FY2018: CNY 0.85

- FY2019: CNY 1.26

- FY2020: CNY 0.95

- FY2021: CNY 1.25

- FY2022: CNY 1.44

- FY2023: CNY 1.71

- FY2024: CNY 2.00

- FY2025: CNY 2.04

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.61×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.68×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.4%

- FY2017: -1.8%

- FY2018: -2.7%

- FY2019: 0.6%

- FY2020: -2.8%

- FY2021: 0.7%

- FY2022: -2.1%

- FY2023: -3.3%

- FY2024: -2.6%

- FY2025: -3.6%

## Holders

## Price story

Down 60% since May 2023 · sales +14.4%

Story as of 2026-10-16T10:00:08.293Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.1% a year for ten years

### Sales · FY2024–2025

sales +14.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 9.0B 

- FY2017: CNY 11B 

- FY2018: CNY 13B 

- FY2019: CNY 15B 

- FY2020: CNY 14B 

- FY2021: CNY 16B 

- FY2022: CNY 18B 

- FY2023: CNY 25B 

- FY2024: CNY 28B 

- FY2025: CNY 32B 

### Gross margin · FY2025

gross margin 53.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 62.4% 

- FY2017: 64.9% 

- FY2018: 69.0% 

- FY2019: 66.8% 

- FY2020: 62.3% 

- FY2021: 57.8% 

- FY2022: 53.8% 

- FY2023: 52.8% 

- FY2024: 51.4% 

- FY2025: 53.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are CNY 31.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2025: revenue 31602578000; grossProfit 17035951000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000999.SHE: China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. engages in the research and development, production, and sale of pharmaceutical products in the People's Republic of China and internationally. The company offers health consumer products (CHC), including cold, flu, skin, gastrointestinal, cough, orthopedics, pediatrics drugs, and dietary nutritional supplements; and prescription drug products, such as anti-tumor, cardiovascular and cerebrovascular, digestive system, orthopedics, pediatrics, anti-infection, and other treatment areas; Chinese medicine health products; and vitamins, minerals, protein powder, collagen, probiotics, health foods, and formula granules. It also provides related health services. The company was formerly known as Sanjiu Pharmaceutical Co., Ltd. and changed its name to China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. in February 2010. China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. was incorporated in 1999 and is headquartered in Shenzhen, China. China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. is a subsidiary of China Resources Pharmaceutical Group Limited.

### Why customers stay

Margins ranged from 51.4% to 53.9% during 2023–25; it earns 29.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2023: grossProfit / revenue = 52.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2024: grossProfit / revenue = 51.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2025: grossProfit / revenue = 53.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); 10-year return on capital observations [[2016,0.22770655719011137],[2017,0.28592579455081574],[2018,0.30121322640503434],[2019,0.32913085333682995],[2020,0.28199993185485744],[2021,0.2966781624853016],[2022,0.24371347655331857],[2023,0.3765873160420861],[2024,0.3995693578397316],[2025,0.3470195040689741]]; median 0.29894569444516794. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 18.6% of cash earnings on expansion; earns 18.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2016: growth capex 69861100; upkeep 284466080; owner earnings 1197840602. Growth capex / owner earnings = 0.05832253463720877.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2017: growth capex 54372612; upkeep 320368402; owner earnings 1301687254. Growth capex / owner earnings = 0.04177087225285222.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2018: growth capex 251816552; upkeep 348539811; owner earnings 1432078206. Growth capex / owner earnings = 0.1758399443165606.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2019: growth capex 200788436; upkeep 335178641; owner earnings 2098848637. Growth capex / owner earnings = 0.09566599156335445.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2020: growth capex 0; upkeep 621823810; owner earnings 1365852547. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2021: growth capex 441633734; upkeep 429166207; owner earnings 2037362877.08. Growth capex / owner earnings = 0.2167673412371981.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2022: growth capex 484399150; upkeep 467166410; owner earnings 2427637792.72. Growth capex / owner earnings = 0.19953518249411678.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2023: growth capex 171502230; upkeep 685708313; owner earnings 2831443721.405386. Growth capex / owner earnings = 0.060570594677006304.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2024: growth capex 151994524; upkeep 638077042; owner earnings 3351494472.605628. Growth capex / owner earnings = 0.04535126799174801.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2025: growth capex 633372726; upkeep 638077000; owner earnings 3400548156.714551. Growth capex / owner earnings = 0.18625606720180513.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); Incremental return on capital 0.18865645268272255, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); Dividend observations: [[2016,170030105],[2017,181639481],[2018,491263854],[2019,381771000],[2020,420927000],[2021,496137767],[2022,841853771],[2023,1055917711],[2024,2834425365],[2025,1255790877]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); FY2025: cash repurchases 35150953 CNY.

### Are managers owners

Insiders own 64.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000999.SHE SharesStats.PercentInsiders = 64.852 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 2.1% yearly over ten years; actual growth was 10.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:53.072Z); Ten-year compound average after fade. Initial solved rate -0.04279669317921836. Price 25.92; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7542647858750435 → FY2025 2.0320122741929136. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 26.88 per share

- 2016-11: CNY 26.30 per share

- 2016-12: CNY 24.73 per share

- 2017-01: CNY 25.15 per share

- 2017-02: CNY 25.97 per share

- 2017-03: CNY 27.00 per share

- 2017-04: CNY 27.88 per share

- 2017-05: CNY 29.66 per share

- 2017-06: CNY 31.75 per share

- 2017-07: CNY 28.60 per share

- 2017-08: CNY 28.42 per share

- 2017-09: CNY 27.93 per share

- 2017-10: CNY 28.20 per share

- 2017-11: CNY 26.05 per share

- 2017-12: CNY 27.20 per share

- 2018-01: CNY 26.63 per share

- 2018-02: CNY 25.33 per share

- 2018-03: CNY 27.55 per share

- 2018-04: CNY 25.80 per share

- 2018-05: CNY 29.41 per share

- 2018-06: CNY 27.83 per share

- 2018-07: CNY 25.35 per share

- 2018-08: CNY 26.32 per share

- 2018-09: CNY 25.47 per share

- 2018-10: CNY 24.01 per share

- 2018-11: CNY 24.53 per share

- 2018-12: CNY 24.86 per share

- 2019-01: CNY 22.08 per share

- 2019-02: CNY 25.14 per share

- 2019-03: CNY 28.84 per share

- 2019-04: CNY 27.14 per share

- 2019-05: CNY 27.55 per share

- 2019-06: CNY 29.34 per share

- 2019-07: CNY 29.30 per share

- 2019-08: CNY 29.53 per share

- 2019-09: CNY 29.13 per share

- 2019-10: CNY 29.48 per share

- 2019-11: CNY 29.39 per share

- 2019-12: CNY 31.68 per share

- 2020-01: CNY 35.71 per share

- 2020-02: CNY 32.80 per share

- 2020-03: CNY 27.85 per share

- 2020-04: CNY 29.05 per share

- 2020-05: CNY 26.98 per share

- 2020-06: CNY 29.19 per share

- 2020-07: CNY 30.28 per share

- 2020-08: CNY 28.21 per share

- 2020-09: CNY 25.43 per share

- 2020-10: CNY 27.05 per share

- 2020-11: CNY 27.10 per share

- 2020-12: CNY 24.94 per share

- 2021-01: CNY 24.81 per share

- 2021-02: CNY 26.18 per share

- 2021-03: CNY 24.46 per share

- 2021-04: CNY 24.99 per share

- 2021-05: CNY 26.06 per share

- 2021-06: CNY 26.75 per share

- 2021-07: CNY 23.86 per share

- 2021-08: CNY 27.95 per share

- 2021-09: CNY 28.28 per share

- 2021-10: CNY 24.13 per share

- 2021-11: CNY 24.43 per share

- 2021-12: CNY 34.24 per share

- 2022-01: CNY 34.68 per share

- 2022-02: CNY 35.81 per share

- 2022-03: CNY 45.36 per share

- 2022-04: CNY 36.88 per share

- 2022-05: CNY 43.88 per share

- 2022-06: CNY 45.00 per share

- 2022-07: CNY 36.22 per share

- 2022-08: CNY 39.49 per share

- 2022-09: CNY 38.41 per share

- 2022-10: CNY 54.54 per share

- 2022-11: CNY 59.22 per share

- 2022-12: CNY 46.81 per share

- 2023-01: CNY 48.58 per share

- 2023-02: CNY 50.93 per share

- 2023-03: CNY 57.45 per share

- 2023-04: CNY 58.95 per share

- 2023-05: CNY 65.32 per share

- 2023-06: CNY 60.66 per share

- 2023-07: CNY 50.11 per share

- 2023-08: CNY 47.58 per share

- 2023-09: CNY 50.12 per share

- 2023-10: CNY 43.14 per share

- 2023-11: CNY 48.58 per share

- 2023-12: CNY 49.73 per share

- 2024-01: CNY 52.30 per share

- 2024-02: CNY 54.98 per share

- 2024-03: CNY 51.89 per share

- 2024-04: CNY 59.97 per share

- 2024-05: CNY 60.84 per share

- 2024-06: CNY 42.58 per share

- 2024-07: CNY 41.28 per share

- 2024-08: CNY 44.93 per share

- 2024-09: CNY 47.61 per share

- 2024-10: CNY 45.00 per share

- 2024-11: CNY 45.11 per share

- 2024-12: CNY 44.34 per share

- 2025-01: CNY 44.23 per share

- 2025-02: CNY 40.98 per share

- 2025-03: CNY 42.11 per share

- 2025-04: CNY 41.12 per share

- 2025-05: CNY 42.95 per share

- 2025-06: CNY 31.28 per share

- 2025-07: CNY 31.33 per share

- 2025-08: CNY 30.43 per share

- 2025-09: CNY 28.09 per share

- 2025-10: CNY 28.83 per share

- 2025-11: CNY 28.10 per share

- 2025-12: CNY 28.46 per share

- 2026-01: CNY 28.11 per share

- 2026-02: CNY 28.88 per share

- 2026-03: CNY 27.94 per share

- 2026-04: CNY 25.91 per share

- 2026-05: CNY 24.45 per share

- 2026-06: CNY 22.49 per share

- 2026-07: CNY 25.81 per share

- 2026-08: CNY 24.50 per share

- 2026-09: CNY 24.19 per share

- 2026-10: CNY 25.17 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 10.50 per share, central CNY 13.59 per share, high CNY 15.79 per share

- FY2017: low CNY 12.24 per share, central CNY 15.93 per share, high CNY 18.49 per share

- FY2018: low CNY 14.44 per share, central CNY 19.04 per share, high CNY 22.08 per share

- FY2019: low CNY 17.04 per share, central CNY 22.53 per share, high CNY 26.12 per share

- FY2020: low CNY 13.97 per share, central CNY 17.40 per share, high CNY 19.96 per share

- FY2021: low CNY 16.49 per share, central CNY 21.14 per share, high CNY 24.34 per share

- FY2022: low CNY 18.14 per share, central CNY 22.06 per share, high CNY 25.46 per share

- FY2023: low CNY 26.07 per share, central CNY 29.91 per share, high CNY 34.11 per share

- FY2024: low CNY 30.32 per share, central CNY 41.92 per share, high CNY 48.68 per share

- FY2025: low CNY 35.54 per share, central CNY 48.89 per share, high CNY 56.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:42:36.891Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.