# CSPC Pharmaceutical Group (1093.HK)

Canonical: https://gigainvestors.com/s/1093.HK

Analysis as of: 2026-10-16T07:35:25.973Z. Financial observations: FY2015–FY2025.

Listing currency: HKD. 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: HKD 8.87 per share; close as of 2026-10-15.

Estimated value: low HKD 6.72 per share, central HKD 7.39 per share, high HKD 8.29 per share. Buy at or below the central value HKD 7.39 per share. Valuation as of 2026-10-16T07:35:25.973Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.23×

- FY2018: 0.22×

- FY2019: 0.21×

- FY2020: 0.24×

- FY2021: 0.22×

- FY2022: 0.22×

- FY2023: 0.22×

- FY2024: 0.19×

- FY2025: 0.16×

### moat: fail

- Recent gross margin fell 4.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 27.5%

- ROIC, second-lowest year: 17.5%

- Typical minus recent gross margin: 4.6 pp

- Typical gross margin (annual median): 70.2%

- Recent gross margin (lower of latest and 3-year median): 65.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.8%

- ROIC including acquisitions, ten-year median: 25.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 26.9%

- FY2017: 25.5%

- FY2018: 30.2%

- FY2019: 26.6%

- FY2020: 36.7%

- FY2021: 34.3%

- FY2022: 33.3%

- FY2023: 28.0%

- FY2024: 17.5%

- FY2025: 13.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 22B

- Net income, five-year total: CNY 26B

- Return on incremental invested capital: 15.0%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 2.7 pp

- Working capital / revenue, final three-year average: 19.3%

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

- FY2021: 1.00×

- FY2022: 0.91×

- FY2023: 0.89×

- FY2024: 0.69×

- FY2025: 0.76×

### 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: 26.9% vs 17.5%

- Per-share earnings: 0.16 to 0.37 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: CNY 31B

- Cumulative retained earnings: CNY 19B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.9%

- Per-share value change: CNY 0.21

- Per-share value, starting three-year median: CNY 0.16

- Per-share value, ending three-year median: CNY 0.37

- Buybacks concentrated in cheaper years (correlation): 0.39

- Average buyback yield: 0.6%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.0B

- Cumulative net income, 10 years: CNY 42B

- ROIC, first three-year median: 26.9%

- ROIC, last three-year median: 17.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.16

- FY2017: CNY 0.19

- FY2018: CNY 0.27

- FY2019: CNY 0.31

- FY2020: CNY 0.43

- FY2021: CNY 0.47

- FY2022: CNY 0.51

- FY2023: CNY 0.49

- FY2024: CNY 0.37

- FY2025: CNY 0.34

### accounting: pass

- Sloan accruals: -4.2%

- Receivables to sales index (DSRI): 1.03×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: -1.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: -2.4%

- FY2018: -2.9%

- FY2019: -0.3%

- FY2020: -5.3%

- FY2021: 2.8%

- FY2022: -3.7%

- FY2023: 3.7%

- FY2024: -0.5%

- FY2025: -4.2%

## Holders

## Price story

Price needs cash profits to grow 3.8% a year for ten years · sales -10.4%

Story as of 2026-10-16T10:00:04.844Z; price observation 2026-10-15.

Price needs cash profits to grow 3.8% a year for ten years

### Sales · FY2024–2025

sales -10.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 11B 

- FY2017: CNY 13B 

- FY2018: CNY 18B 

- FY2019: CNY 22B 

- FY2020: CNY 25B 

- FY2021: CNY 28B 

- FY2022: CNY 31B 

- FY2023: CNY 31B 

- FY2024: CNY 29B 

- FY2025: CNY 26B 

### Gross margin · FY2025

gross margin 65.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 51.0% 

- FY2017: 60.4% 

- FY2018: 66.2% 

- FY2019: 72.0% 

- FY2020: 74.9% 

- FY2021: 75.8% 

- FY2022: 71.9% 

- FY2023: 70.5% 

- FY2024: 70.0% 

- FY2025: 65.6% 

## Owner memo

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

### How it makes money

Annual sales are CNY 26 billion.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2025-12-31 (filed 2026-10-16T07:35:25.973Z); FY2025: revenue 26005980000; grossProfit 17058503000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1093.HK: CSPC Pharmaceutical Group Limited, an investment holding company, engages in the manufacture and sale of pharmaceutical products in Mainland China, other Asian regions, Europe, North America, and internationally. It operates through Finished Drugs, Bulk Products, and Functional Food and Others segments. The company provides NBP soft capsules and injections for acute ischemic stroke; Oulaining capsules and injections to treat mild to moderate memory and mental impairment; Enxi to treat adult idiopathic Parkinson's disease; Duomeisu for lymphoma, multiple myeloma, ovarian and breast cancers, and other malignant tumors; Jinyouli to prevent infection induced by chemotherapy; and Keaili for breast cancer. It also offers Shuluoke, Nuomoling, Weihong, and Xinweihong for various infections; Xuanning for hypertension; Encun to prevent atherosclerotic thrombosis events; Qixiao to treat upper respiratory tract infection; Linmeixin and Shuanglexin for diabetes; Gubang and Gubangjia to treat osteoporosis in postmenopausal women; and Gaoshunsong for arthritis, osteoarthritis, ankylosing spondylitis, frozen shoulder, bursuitis, tenosynovitis, acute gout, dysmenorrhea, toothache and postoperative pain, low back pain, sprain, strain, and other soft tissue injuries. In addition, the company provides Debixin for various ulcer; Qimaite for acute and chronic pains; antibiotics, vitamin C, and caffeine APIs; functional food products; and healthcare services. It has a strategic collaboration with AstraZeneca PLC to advance the discovery and development of novel oral candidates, with the potential to treat diseases across multiple indications and multiple therapies for obesity and type 2 diabetes. The company was formerly known as China Pharmaceutical Group Limited and changed its name to CSPC Pharmaceutical Group Limited in March 2013. CSPC Pharmaceutical Group Limited was incorporated in 1992 and is headquartered in Shijiazhuang, the People's Republic of China.

### Why customers stay

Margins ranged from 65.6% to 70.5% during 2023–25; it earns 27.5% on its capital.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2023-12-31 (filed 2026-10-16T07:35:25.973Z); FY2023: grossProfit / revenue = 70.5%.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2024-12-31 (filed 2026-10-16T07:35:25.973Z); FY2024: grossProfit / revenue = 70%.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2025-12-31 (filed 2026-10-16T07:35:25.973Z); FY2025: grossProfit / revenue = 65.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.973Z); 10-year return on capital observations [[2016,0.26895487383145517],[2017,0.2545037912599301],[2018,0.3024179769431768],[2019,0.26630227512788984],[2020,0.36696165132358455],[2021,0.3426125279411919],[2022,0.3332418923198221],[2023,0.28008848271410003],[2024,0.17544351913829553],[2025,0.13722335359982268]]; median 0.2745216782727776. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 1% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2016-12-31 (filed 2026-10-16T07:35:25.973Z); FY2016: growth capex 535713613.96000004; upkeep 526252781.14; owner earnings 1881106538.85. Growth capex / owner earnings = 0.2847864291022583.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2017-12-31 (filed 2026-10-16T07:35:25.973Z); FY2017: growth capex 420409796.37; upkeep 598733359.99; owner earnings 2315067786.86. Growth capex / owner earnings = 0.1815971863788123.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2018-12-31 (filed 2026-10-16T07:35:25.973Z); FY2018: growth capex 1518379558.95; upkeep 655253475.55; owner earnings 3210005612.72. Growth capex / owner earnings = 0.4730146118540274.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2019-12-31 (filed 2026-10-16T07:35:25.973Z); FY2019: growth capex 1431077000; upkeep 691595000; owner earnings 3681199000. Growth capex / owner earnings = 0.38875295793571607.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2020-12-31 (filed 2026-10-16T07:35:25.973Z); FY2020: growth capex 767799000; upkeep 808807000; owner earnings 5116112200. Growth capex / owner earnings = 0.15007469929998798.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2021-12-31 (filed 2026-10-16T07:35:25.973Z); FY2021: growth capex 892977000; upkeep 865471000; owner earnings 5586376200. Growth capex / owner earnings = 0.15984906279673752.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2022-12-31 (filed 2026-10-16T07:35:25.973Z); FY2022: growth capex 1188029930.4974656; upkeep 1534662069.5025344; cash acquisitions 552798000; owner earnings 5524644930.497465. Growth capex plus acquisitions / owner earnings = 0.31510222872200283.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2023-12-31 (filed 2026-10-16T07:35:25.973Z); FY2023: growth capex 196276194.2517047; upkeep 1696790805.7482953; cash acquisitions 115000000; owner earnings 5242687194.251705. Growth capex plus acquisitions / owner earnings = 0.05937340579712643.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2024-12-31 (filed 2026-10-16T07:35:25.973Z); FY2024: growth capex 0; upkeep 2678876000; cash acquisitions 173000000; owner earnings 2965583800. Growth capex plus acquisitions / owner earnings = 0.05833590000053278.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2025-12-31 (filed 2026-10-16T07:35:25.973Z); FY2025: growth capex 0; upkeep 2280493000; cash acquisitions 29000000; owner earnings 2951887800. Growth capex plus acquisitions / owner earnings = 0.009824221638776378.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.973Z); Dividend observations: [[2016,582202065.47],[2017,607053499.64],[2018,822445274.92],[2019,965385000],[2020,1527694000],[2021,1690763000],[2022,2096961000],[2023,2726253000],[2024,3233815000],[2025,2497337000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/CVG.STU.json#2025-12-31 (filed 2026-10-16T07:35:25.973Z); FY2025: cash repurchases 277633000 CNY.

### Are managers owners

Insiders own 32.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1093.HK SharesStats.PercentInsiders = 32.584999999999994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.8% yearly over ten years; actual growth was 8.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:25.973Z); Ten-year compound average after fade. Initial solved rate 0.04212860167215815. Price 8.865; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.11291503110600937 → FY2025 0.25840050659629127. Closing-price date 2026-10-15.

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

- 2016-10: HKD 8.04 per share

- 2016-11: HKD 8.33 per share

- 2016-12: HKD 8.28 per share

- 2017-01: HKD 8.76 per share

- 2017-02: HKD 9.50 per share

- 2017-03: HKD 10.18 per share

- 2017-04: HKD 10.80 per share

- 2017-05: HKD 11.66 per share

- 2017-06: HKD 11.40 per share

- 2017-07: HKD 12.18 per share

- 2017-08: HKD 12.22 per share

- 2017-09: HKD 13.08 per share

- 2017-10: HKD 13.56 per share

- 2017-11: HKD 15.50 per share

- 2017-12: HKD 15.78 per share

- 2018-01: HKD 17.36 per share

- 2018-02: HKD 18.08 per share

- 2018-03: HKD 20.85 per share

- 2018-04: HKD 20.20 per share

- 2018-05: HKD 24.55 per share

- 2018-06: HKD 23.70 per share

- 2018-07: HKD 20.50 per share

- 2018-08: HKD 19.80 per share

- 2018-09: HKD 16.62 per share

- 2018-10: HKD 16.54 per share

- 2018-11: HKD 15.84 per share

- 2018-12: HKD 11.30 per share

- 2019-01: HKD 13.46 per share

- 2019-02: HKD 13.40 per share

- 2019-03: HKD 14.60 per share

- 2019-04: HKD 15.12 per share

- 2019-05: HKD 12.64 per share

- 2019-06: HKD 12.60 per share

- 2019-07: HKD 13.76 per share

- 2019-08: HKD 15.68 per share

- 2019-09: HKD 15.74 per share

- 2019-10: HKD 20.15 per share

- 2019-11: HKD 17.82 per share

- 2019-12: HKD 18.58 per share

- 2020-01: HKD 17.30 per share

- 2020-02: HKD 17.76 per share

- 2020-03: HKD 15.52 per share

- 2020-04: HKD 15.40 per share

- 2020-05: HKD 15.18 per share

- 2020-06: HKD 14.64 per share

- 2020-07: HKD 16.26 per share

- 2020-08: HKD 17.22 per share

- 2020-09: HKD 15.00 per share

- 2020-10: HKD 8.17 per share

- 2020-11: HKD 7.57 per share

- 2020-12: HKD 7.93 per share

- 2021-01: HKD 7.92 per share

- 2021-02: HKD 8.10 per share

- 2021-03: HKD 9.40 per share

- 2021-04: HKD 9.62 per share

- 2021-05: HKD 12.18 per share

- 2021-06: HKD 11.24 per share

- 2021-07: HKD 10.48 per share

- 2021-08: HKD 9.87 per share

- 2021-09: HKD 9.34 per share

- 2021-10: HKD 8.14 per share

- 2021-11: HKD 8.08 per share

- 2021-12: HKD 8.47 per share

- 2022-01: HKD 9.45 per share

- 2022-02: HKD 9.25 per share

- 2022-03: HKD 9.05 per share

- 2022-04: HKD 8.10 per share

- 2022-05: HKD 8.40 per share

- 2022-06: HKD 7.79 per share

- 2022-07: HKD 8.59 per share

- 2022-08: HKD 7.99 per share

- 2022-09: HKD 7.78 per share

- 2022-10: HKD 8.07 per share

- 2022-11: HKD 9.99 per share

- 2022-12: HKD 8.20 per share

- 2023-01: HKD 8.94 per share

- 2023-02: HKD 8.43 per share

- 2023-03: HKD 7.72 per share

- 2023-04: HKD 7.98 per share

- 2023-05: HKD 6.82 per share

- 2023-06: HKD 6.81 per share

- 2023-07: HKD 6.49 per share

- 2023-08: HKD 5.90 per share

- 2023-09: HKD 5.74 per share

- 2023-10: HKD 6.83 per share

- 2023-11: HKD 7.05 per share

- 2023-12: HKD 7.26 per share

- 2024-01: HKD 5.74 per share

- 2024-02: HKD 6.12 per share

- 2024-03: HKD 6.15 per share

- 2024-04: HKD 6.48 per share

- 2024-05: HKD 6.63 per share

- 2024-06: HKD 6.22 per share

- 2024-07: HKD 5.82 per share

- 2024-08: HKD 4.82 per share

- 2024-09: HKD 6.05 per share

- 2024-10: HKD 5.75 per share

- 2024-11: HKD 5.07 per share

- 2024-12: HKD 4.78 per share

- 2025-01: HKD 4.46 per share

- 2025-02: HKD 4.71 per share

- 2025-03: HKD 4.94 per share

- 2025-04: HKD 6.13 per share

- 2025-05: HKD 8.10 per share

- 2025-06: HKD 7.70 per share

- 2025-07: HKD 9.92 per share

- 2025-08: HKD 10.07 per share

- 2025-09: HKD 9.37 per share

- 2025-10: HKD 7.65 per share

- 2025-11: HKD 7.91 per share

- 2025-12: HKD 8.43 per share

- 2026-01: HKD 9.60 per share

- 2026-02: HKD 9.90 per share

- 2026-03: HKD 9.10 per share

- 2026-04: HKD 8.41 per share

- 2026-05: HKD 7.50 per share

- 2026-06: HKD 6.97 per share

- 2026-07: HKD 8.58 per share

- 2026-08: HKD 9.24 per share

- 2026-09: HKD 10.07 per share

- 2026-10: HKD 8.87 per share

## Annual estimated value (HKD per share)

- FY2019: low HKD 4.38 per share, central HKD 4.93 per share, high HKD 5.67 per share

- FY2020: low HKD 5.46 per share, central HKD 6.10 per share, high HKD 6.95 per share

- FY2021: low HKD 6.35 per share, central HKD 7.09 per share, high HKD 8.08 per share

- FY2022: low HKD 7.25 per share, central HKD 8.07 per share, high HKD 9.16 per share

- FY2023: low HKD 7.29 per share, central HKD 8.13 per share, high HKD 9.24 per share

- FY2024: low HKD 6.42 per share, central HKD 7.20 per share, high HKD 8.24 per share

- FY2025: low HKD 5.72 per share, central HKD 6.39 per share, high HKD 7.28 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 2026-10-15T06:41:09.936Z 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.