# Shijiazhuang Yiling Pharmaceutical (002603.SHE)

Canonical: https://gigainvestors.com/s/002603.SHE

Analysis as of: 2026-10-16T07:38:26.163Z. Financial observations: FY2008–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 15.01 per share; close as of 2026-10-15.

Estimated value: low CNY 9.05 per share, central CNY 10.14 per share, high CNY 11.58 per share. Buy at or below the central value CNY 10.14 per share. Valuation as of 2026-10-16T07:38:26.163Z; scenarios are not confidence intervals.

Expected annual return: 7.5% at the stated quote. About 7.5% 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: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 1

- Operating margin variation: 0.62×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.16×

- FY2017: 0.16×

- FY2018: 0.15×

- FY2019: 0.12×

- FY2020: 0.16×

- FY2021: 0.16×

- FY2022: 0.23×

- FY2023: 0.17×

- FY2024: -0.11×

- FY2025: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 11.6%

- ROIC, second-lowest year: 8.7%

- Typical minus recent gross margin: 7.0 pp

- Typical gross margin (annual median): 64.1%

- Recent gross margin (lower of latest and 3-year median): 57.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 12.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 10.8%

- FY2017: 10.1%

- FY2018: 10.0%

- FY2019: 8.7%

- FY2020: 16.1%

- FY2021: 15.0%

- FY2022: 26.0%

- FY2023: 12.5%

- FY2024: -5.9%

- FY2025: 15.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.20×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 6.8B

- Net income, five-year total: CNY 5.6B

- Return on incremental invested capital: 515.4%

- Working capital / revenue, annual change: -4.2 pp

- Working capital / revenue, change between three-year averages: -28.8 pp

- Working capital / revenue, final three-year average: 19.5%

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

- FY2021: 1.00×

- FY2022: 1.09×

- FY2023: 1.17×

- FY2024: 0.58×

- FY2025: 1.29×

### management: pass

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

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 10.1% vs 12.5%

- Per-share earnings: 0.32 to 0.77 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.0%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: CNY 1.3B

- Cumulative retained earnings: CNY 3.8B

- Diluted shares, 10-year annual growth: 1.0%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.8%

- Per-share value change: CNY 0.45

- Per-share value, starting three-year median: CNY 0.32

- Per-share value, ending three-year median: CNY 0.77

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.4%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 796M

- Cumulative net income, 10 years: CNY 9.1B

- ROIC, first three-year median: 10.1%

- ROIC, last three-year median: 12.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.34

- FY2017: CNY 0.32

- FY2018: CNY 0.34

- FY2019: CNY 0.36

- FY2020: CNY 0.72

- FY2021: CNY 0.80

- FY2022: CNY 1.41

- FY2023: CNY 0.81

- FY2024: CNY -0.43

- FY2025: CNY 0.77

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 0.67×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.7%

- FY2017: 5.4%

- FY2018: 6.2%

- FY2019: 5.9%

- FY2020: -3.2%

- FY2021: 6.3%

- FY2022: -6.9%

- FY2023: 7.0%

- FY2024: -10.0%

- FY2025: -3.6%

## Holders

## Price story

Down 67% since Nov 2022 · sales +20.2%

Story as of 2026-10-16T10:00:09.966Z; price observation 2026-10-15.

Price needs cash profits to grow 6.3% a year for ten years

### Sales · FY2024–2025

sales +20.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 3.8B 

- FY2017: CNY 4.1B 

- FY2018: CNY 4.8B 

- FY2019: CNY 5.8B 

- FY2020: CNY 8.8B 

- FY2021: CNY 10B 

- FY2022: CNY 13B 

- FY2023: CNY 10B 

- FY2024: CNY 6.5B 

- FY2025: CNY 7.8B 

### Gross margin · FY2025

gross margin 64.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 66.7% 

- FY2017: 68.1% 

- FY2018: 66.0% 

- FY2019: 63.8% 

- FY2020: 64.4% 

- FY2021: 63.4% 

- FY2022: 63.6% 

- FY2023: 57.0% 

- FY2024: 46.5% 

- FY2025: 64.3% 

## 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 7.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2025: revenue 7830737438.74; grossProfit 5033327264.99; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002603.SHE: Shijiazhuang Yiling Pharmaceutical Co., Ltd. engages in the research and development, production, and sale of traditional Chinese medicine in China and internationally. It offers dietary supplements, and healthy food and drinks; patent TCM products for respiratory health, cardiovascular disease, diabetes, mellitus, oncology, urologic disease, sleep-improving, and anti-aging; disinfection and personal protective equipment products; and TCM formula granules. Shijiazhuang Yiling Pharmaceutical Co., Ltd. was founded in 1992 and is based in Shijiazhuang, China.

### Why customers stay

Margins ranged from 46.5% to 64.3% during 2023–25; it earns 11.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2023: grossProfit / revenue = 57%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2024: grossProfit / revenue = 46.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2025: grossProfit / revenue = 64.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); 10-year return on capital observations [[2016,0.10750605135904634],[2017,0.10055190689925761],[2018,0.10006978743905462],[2019,0.08682067134304605],[2020,0.16063567281293276],[2021,0.15000872633734255],[2022,0.26008381830328925],[2023,0.12461641391396594],[2024,-0.05865054561744018],[2025,0.15799318654630953]]; median 0.11606123263650614. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2016: growth capex 154868880; upkeep 218158201; owner earnings 532686061. Growth capex / owner earnings = 0.2907319927036724.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2017: growth capex 0; upkeep 180347682; owner earnings 605019689. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2018: growth capex 0; upkeep 187228365; owner earnings 665155058. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2019: growth capex 194734751; upkeep 259693311; owner earnings 606501071. Growth capex / owner earnings = 0.321078989487885.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2020: growth capex 876616947; upkeep 268162399; owner earnings 1218737683. Growth capex / owner earnings = 0.7192827129478362.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2021: growth capex 320953276.9; upkeep 352605714; owner earnings 1341349721.73. Growth capex / owner earnings = 0.23927635850705053.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2022: growth capex 0; upkeep 213980414; owner earnings 2586380510.478. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2023: growth capex 0; upkeep 310833995; owner earnings 1579584037.586. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); FY2025: growth capex 0; upkeep 245617151.14; owner earnings 1665120756.726. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); Dividend observations: [[2016,86856341],[2017,103061430],[2018,120630658.3],[2019,119776398],[2020,238672196],[2021,1193360983],[2022,282702079.9],[2023,835352688],[2024,375305427],[2025,501211612.8]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 55.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002603.SHE SharesStats.PercentInsiders = 55.943 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.3% yearly over ten years; actual growth was 19%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:26.163Z); Ten-year compound average after fade. Initial solved rate 0.07792476831741646. Price 15.01; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.17560227165125444 → FY2025 0.9966298080592488. Closing-price date 2026-10-15.

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

- 2016-10: CNY 16.42 per share

- 2016-11: CNY 17.43 per share

- 2016-12: CNY 17.24 per share

- 2017-01: CNY 16.70 per share

- 2017-02: CNY 17.62 per share

- 2017-03: CNY 17.85 per share

- 2017-04: CNY 17.11 per share

- 2017-05: CNY 16.48 per share

- 2017-06: CNY 17.46 per share

- 2017-07: CNY 16.45 per share

- 2017-08: CNY 17.02 per share

- 2017-09: CNY 16.27 per share

- 2017-10: CNY 16.97 per share

- 2017-11: CNY 16.24 per share

- 2017-12: CNY 15.56 per share

- 2018-01: CNY 15.40 per share

- 2018-02: CNY 13.94 per share

- 2018-03: CNY 15.42 per share

- 2018-04: CNY 15.24 per share

- 2018-05: CNY 16.78 per share

- 2018-06: CNY 13.98 per share

- 2018-07: CNY 13.72 per share

- 2018-08: CNY 12.72 per share

- 2018-09: CNY 12.28 per share

- 2018-10: CNY 10.71 per share

- 2018-11: CNY 10.38 per share

- 2018-12: CNY 10.46 per share

- 2019-01: CNY 10.78 per share

- 2019-02: CNY 12.44 per share

- 2019-03: CNY 13.03 per share

- 2019-04: CNY 1,000,000.00 per share

- 2019-05: CNY 11.64 per share

- 2019-06: CNY 11.58 per share

- 2019-07: CNY 10.83 per share

- 2019-08: CNY 10.68 per share

- 2019-09: CNY 10.79 per share

- 2019-10: CNY 11.07 per share

- 2019-11: CNY 11.29 per share

- 2019-12: CNY 12.43 per share

- 2020-01: CNY 16.22 per share

- 2020-02: CNY 16.14 per share

- 2020-03: CNY 22.42 per share

- 2020-04: CNY 28.78 per share

- 2020-05: CNY 27.23 per share

- 2020-06: CNY 31.19 per share

- 2020-07: CNY 31.84 per share

- 2020-08: CNY 28.62 per share

- 2020-09: CNY 26.97 per share

- 2020-10: CNY 26.65 per share

- 2020-11: CNY 25.15 per share

- 2020-12: CNY 25.50 per share

- 2021-01: CNY 24.46 per share

- 2021-02: CNY 23.47 per share

- 2021-03: CNY 24.63 per share

- 2021-04: CNY 28.05 per share

- 2021-05: CNY 29.15 per share

- 2021-06: CNY 29.16 per share

- 2021-07: CNY 18.80 per share

- 2021-08: CNY 17.10 per share

- 2021-09: CNY 16.63 per share

- 2021-10: CNY 16.05 per share

- 2021-11: CNY 17.15 per share

- 2021-12: CNY 19.60 per share

- 2022-01: CNY 20.82 per share

- 2022-02: CNY 24.10 per share

- 2022-03: CNY 33.50 per share

- 2022-04: CNY 24.90 per share

- 2022-05: CNY 21.81 per share

- 2022-06: CNY 24.30 per share

- 2022-07: CNY 22.19 per share

- 2022-08: CNY 21.39 per share

- 2022-09: CNY 21.71 per share

- 2022-10: CNY 30.48 per share

- 2022-11: CNY 44.90 per share

- 2022-12: CNY 29.96 per share

- 2023-01: CNY 29.00 per share

- 2023-02: CNY 30.02 per share

- 2023-03: CNY 29.11 per share

- 2023-04: CNY 31.47 per share

- 2023-05: CNY 28.65 per share

- 2023-06: CNY 25.69 per share

- 2023-07: CNY 24.95 per share

- 2023-08: CNY 23.27 per share

- 2023-09: CNY 23.46 per share

- 2023-10: CNY 22.22 per share

- 2023-11: CNY 25.12 per share

- 2023-12: CNY 23.07 per share

- 2024-01: CNY 19.69 per share

- 2024-02: CNY 21.46 per share

- 2024-03: CNY 20.17 per share

- 2024-04: CNY 18.83 per share

- 2024-05: CNY 18.16 per share

- 2024-06: CNY 15.33 per share

- 2024-07: CNY 15.82 per share

- 2024-08: CNY 15.45 per share

- 2024-09: CNY 18.02 per share

- 2024-10: CNY 17.00 per share

- 2024-11: CNY 17.22 per share

- 2024-12: CNY 16.01 per share

- 2025-01: CNY 13.61 per share

- 2025-02: CNY 13.90 per share

- 2025-03: CNY 14.04 per share

- 2025-04: CNY 13.74 per share

- 2025-05: CNY 14.57 per share

- 2025-06: CNY 14.10 per share

- 2025-07: CNY 16.23 per share

- 2025-08: CNY 16.38 per share

- 2025-09: CNY 15.89 per share

- 2025-10: CNY 17.88 per share

- 2025-11: CNY 18.67 per share

- 2025-12: CNY 17.07 per share

- 2026-01: CNY 17.57 per share

- 2026-02: CNY 17.48 per share

- 2026-03: CNY 16.84 per share

- 2026-04: CNY 17.04 per share

- 2026-05: CNY 16.22 per share

- 2026-06: CNY 15.00 per share

- 2026-07: CNY 16.89 per share

- 2026-08: CNY 15.93 per share

- 2026-09: CNY 15.35 per share

- 2026-10: CNY 15.07 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.58 per share, central CNY 2.89 per share, high CNY 3.29 per share

- FY2017: low CNY 3.48 per share, central CNY 3.83 per share, high CNY 4.30 per share

- FY2018: low CNY 5.90 per share, central CNY 8.09 per share, high CNY 9.36 per share

- FY2019: low CNY 6.35 per share, central CNY 7.92 per share, high CNY 9.16 per share

- FY2020: low CNY 10.59 per share, central CNY 14.78 per share, high CNY 17.21 per share

- FY2021: low CNY 11.88 per share, central CNY 16.76 per share, high CNY 19.60 per share

- FY2022: low CNY 15.39 per share, central CNY 21.43 per share, high CNY 24.94 per share

- FY2023: low CNY 12.21 per share, central CNY 17.21 per share, high CNY 20.12 per share

- FY2024: low CNY 6.35 per share, central CNY 7.16 per share, high CNY 8.25 per share

- FY2025: low CNY 8.87 per share, central CNY 9.95 per share, high CNY 11.39 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 2026-10-15T06:44:08.166Z 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.

## Reported holder observations