# Sinopharm Group (1099.HK)

Canonical: https://gigainvestors.com/s/1099.HK

Analysis as of: 2026-10-16T07:36:58.486Z. Financial observations: FY2006–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 15.65 per share; close as of 2026-10-15.

Estimated value: low HKD 54.89 per share, central HKD 66.17 per share, high HKD 75.19 per share. Buy at or below the central value HKD 66.17 per share. Valuation as of 2026-10-16T07:36:58.486Z; scenarios are not confidence intervals.

Expected annual return: 116.7% at the stated quote. About 116.7% 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: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.03×

### moat: pass

- ROIC, median of available years: 21.0%

- ROIC, second-lowest year: 12.5%

- Typical minus recent gross margin: 1.0 pp

- Typical gross margin (annual median): 8.3%

- Recent gross margin (lower of latest and 3-year median): 7.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.4%

- ROIC including acquisitions, ten-year median: 9.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.9%

- FY2017: 24.4%

- FY2018: 22.5%

- FY2019: 22.0%

- FY2020: 20.9%

- FY2021: 19.0%

- FY2022: 21.2%

- FY2023: 20.1%

- FY2024: 12.5%

- FY2025: 9.4%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 41B

- Net income, five-year total: CNY 40B

- Return on incremental invested capital: 3.6%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 5.8 pp

- Working capital / revenue, final three-year average: 20.6%

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

- FY2021: 1.09×

- FY2022: 1.05×

- FY2023: 1.07×

- FY2024: 0.94×

- FY2025: 0.96×

### management: pass

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 22.5% vs 12.5%

- Per-share earnings: 1.68 to 2.29 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.2%

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

- Market cap gain: CNY -24B

- Cumulative retained earnings: CNY 45B

- Diluted shares, 10-year annual growth: 1.2%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.0%

- Per-share value change: CNY 0.61

- Per-share value, starting three-year median: CNY 1.68

- Per-share value, ending three-year median: CNY 2.29

- Average buyback yield: 0.2%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 12B

- Cumulative net income, 10 years: CNY 79B

- ROIC, first three-year median: 22.5%

- ROIC, last three-year median: 12.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.68

- FY2017: CNY 2.65

- FY2018: CNY 3.16

- FY2019: CNY 3.57

- FY2020: CNY 2.30

- FY2021: CNY 2.49

- FY2022: CNY 2.73

- FY2023: CNY 2.90

- FY2024: CNY 2.26

- FY2025: CNY 2.29

### accounting: pass

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.98×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: 3.7%

- FY2018: 2.4%

- FY2019: -3.0%

- FY2020: -1.3%

- FY2021: -0.5%

- FY2022: -3.4%

- FY2023: -2.1%

- FY2024: -1.1%

- FY2025: -1.8%

## Holders

## Price story

Down 44% since Apr 2023 · sales -1.6%

Story as of 2026-10-16T10:00:08.424Z; price observation 2026-10-15.

Price needs cash profits to shrink 36.4% a year for ten years

### Sales · FY2024–2025

sales -1.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 258B 

- FY2017: CNY 277B 

- FY2018: CNY 345B 

- FY2019: CNY 425B 

- FY2020: CNY 456B 

- FY2021: CNY 521B 

- FY2022: CNY 552B 

- FY2023: CNY 597B 

- FY2024: CNY 585B 

- FY2025: CNY 575B 

### Gross margin · FY2025

gross margin 7.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 7.9% 

- FY2017: 8.1% 

- FY2018: 9.1% 

- FY2019: 8.8% 

- FY2020: 8.8% 

- FY2021: 8.5% 

- FY2022: 8.6% 

- FY2023: 8.1% 

- FY2024: 7.6% 

- FY2025: 7.2% 

## Owner memo

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

### How it makes money

Operates in medical distribution; annual sales are CNY 575.2 billion.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2025-12-31 (filed 2026-10-16T07:36:58.486Z); FY2025: revenue 575167877000; grossProfit 41672013000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1099.HK: Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and healthcare products, and medical devices in the People's Republic of China. The company operates through four segments: Pharmaceutical Distribution, Medical Devices Distribution, Retail Pharmacy, and Other Business. The Pharmaceutical Distribution segment distributes pharmaceutical products to hospitals, other distributors, retail pharmacy stores, and clinics. This segment also offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. The Medical Devices Distribution segment distributes medical devices, as well as provides installation and maintenance services. The Retail Pharmacy segment operates and franchises a network of retail drug stores. The Other Business segment engages in the distribution of laboratory supplies; manufacture and distribution of chemical reagents; and production and sale of pharmaceutical products. The company rents and manages properties; distributes medical instruments and equipment, Chinese herbal medicines, antibiotics, and biological products; and offers information technology, investment, goods and technology import and export, business consulting, health consultation, medical consulting, market information consulting and investigation, and convention and exhibition services. It also manages medical project investment, consulting, and technology training activities; and manufactures medicines. Sinopharm Group Co. Ltd. was founded in 2003 and is headquartered in Shanghai, the People's Republic of China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.

### Why customers stay

Margins ranged from 7.2% to 8.1% during 2023–25; it earns 21% on its capital.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2023-12-31 (filed 2026-10-16T07:36:58.486Z); FY2023: grossProfit / revenue = 8.1%.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2024-12-31 (filed 2026-10-16T07:36:58.486Z); FY2024: grossProfit / revenue = 7.6%.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2025-12-31 (filed 2026-10-16T07:36:58.486Z); FY2025: grossProfit / revenue = 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.486Z); 10-year return on capital observations [[2016,0.21929165799347303],[2017,0.24432239787107535],[2018,0.2251247480108407],[2019,0.22038526954660456],[2020,0.20877631501467678],[2021,0.19048392278600207],[2022,0.21150583083907107],[2023,0.20093309716388297],[2024,0.12460223366605631],[2025,0.0937449696230214]]; median 0.21014107292687392. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 9% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.486Z); Gross margin observations: [[2021,0.08454179750672695],[2022,0.08590830476382626],[2023,0.08131772193239525]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2016-12-31 (filed 2026-10-16T07:36:58.486Z); FY2016: growth capex 296075000; upkeep 1067761000; owner earnings 4647344000. Growth capex / owner earnings = 0.0637084321711498.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2017-12-31 (filed 2026-10-16T07:36:58.486Z); FY2017: growth capex 646944745.8822756; upkeep 1247754254.1177244; owner earnings 7635548745.882276. Growth capex / owner earnings = 0.08472799629904296.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2018-12-31 (filed 2026-10-16T07:36:58.486Z); FY2018: growth capex 2009441000; upkeep 1394679000; owner earnings 9404484000. Growth capex / owner earnings = 0.21366839477849078.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2019-12-31 (filed 2026-10-16T07:36:58.486Z); FY2019: growth capex 0; upkeep 2548834000; owner earnings 10327376200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2020-12-31 (filed 2026-10-16T07:36:58.486Z); FY2020: growth capex 0; upkeep 2087324000; owner earnings 7767238000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2021-12-31 (filed 2026-10-16T07:36:58.486Z); FY2021: growth capex 0; upkeep 2255642000; owner earnings 8465478800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2022-12-31 (filed 2026-10-16T07:36:58.486Z); FY2022: growth capex 0; upkeep 2417529000; cash acquisitions 336709000; owner earnings 8988616549.217724. Growth capex plus acquisitions / owner earnings = 0.03745949091902287.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2023-12-31 (filed 2026-10-16T07:36:58.486Z); FY2023: growth capex 0; upkeep 2335850000; cash acquisitions 31855000; owner earnings 9687666059.23319. Growth capex plus acquisitions / owner earnings = 0.0032882016994835827.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2024-12-31 (filed 2026-10-16T07:36:58.486Z); FY2024: growth capex 0; upkeep 1968077000; cash acquisitions 121775000; owner earnings 6632955029.387369. Growth capex plus acquisitions / owner earnings = 0.0183590872334389.

- Source: https://eodhd.com/api/fundamentals/1099.HK.json#2025-12-31 (filed 2026-10-16T07:36:58.486Z); FY2025: growth capex 0; upkeep 1617346000; cash acquisitions 0; owner earnings 6902878784.638127. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.486Z); Dividend observations: [[2016,1134509000],[2017,1383433000],[2018,1577030000],[2019,1753277000],[2020,1865123000],[2021,2153253000],[2022,2340492000],[2023,2558837000],[2024,2714862000],[2025,2121962000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1099.HK SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 36.4% yearly over ten years; actual growth was 5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:58.486Z); Ten-year compound average after fade. Initial solved rate -0.4975770753005706. Price 15.65; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.359060314156182 → FY2025 2.2119960625708592. Closing-price date 2026-10-15.

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

- 2016-10: HKD 37.75 per share

- 2016-11: HKD 36.20 per share

- 2016-12: HKD 31.95 per share

- 2017-01: HKD 35.60 per share

- 2017-02: HKD 35.90 per share

- 2017-03: HKD 36.05 per share

- 2017-04: HKD 34.90 per share

- 2017-05: HKD 35.60 per share

- 2017-06: HKD 35.30 per share

- 2017-07: HKD 32.75 per share

- 2017-08: HKD 35.35 per share

- 2017-09: HKD 34.40 per share

- 2017-10: HKD 34.90 per share

- 2017-11: HKD 30.70 per share

- 2017-12: HKD 33.80 per share

- 2018-01: HKD 34.55 per share

- 2018-02: HKD 34.55 per share

- 2018-03: HKD 39.30 per share

- 2018-04: HKD 33.10 per share

- 2018-05: HKD 34.85 per share

- 2018-06: HKD 31.55 per share

- 2018-07: HKD 33.20 per share

- 2018-08: HKD 39.05 per share

- 2018-09: HKD 38.30 per share

- 2018-10: HKD 37.80 per share

- 2018-11: HKD 38.55 per share

- 2018-12: HKD 32.90 per share

- 2019-01: HKD 35.05 per share

- 2019-02: HKD 34.90 per share

- 2019-03: HKD 32.70 per share

- 2019-04: HKD 30.80 per share

- 2019-05: HKD 29.45 per share

- 2019-06: HKD 27.50 per share

- 2019-07: HKD 29.20 per share

- 2019-08: HKD 28.35 per share

- 2019-09: HKD 24.55 per share

- 2019-10: HKD 28.15 per share

- 2019-11: HKD 25.85 per share

- 2019-12: HKD 28.45 per share

- 2020-01: HKD 25.50 per share

- 2020-02: HKD 24.05 per share

- 2020-03: HKD 17.44 per share

- 2020-04: HKD 21.00 per share

- 2020-05: HKD 19.06 per share

- 2020-06: HKD 19.84 per share

- 2020-07: HKD 18.46 per share

- 2020-08: HKD 19.08 per share

- 2020-09: HKD 16.26 per share

- 2020-10: HKD 17.72 per share

- 2020-11: HKD 19.16 per share

- 2020-12: HKD 18.86 per share

- 2021-01: HKD 18.94 per share

- 2021-02: HKD 18.16 per share

- 2021-03: HKD 18.82 per share

- 2021-04: HKD 24.10 per share

- 2021-05: HKD 26.40 per share

- 2021-06: HKD 23.10 per share

- 2021-07: HKD 20.40 per share

- 2021-08: HKD 19.98 per share

- 2021-09: HKD 20.30 per share

- 2021-10: HKD 18.56 per share

- 2021-11: HKD 16.94 per share

- 2021-12: HKD 16.96 per share

- 2022-01: HKD 17.38 per share

- 2022-02: HKD 18.88 per share

- 2022-03: HKD 17.88 per share

- 2022-04: HKD 18.16 per share

- 2022-05: HKD 19.46 per share

- 2022-06: HKD 19.02 per share

- 2022-07: HKD 18.00 per share

- 2022-08: HKD 17.48 per share

- 2022-09: HKD 15.74 per share

- 2022-10: HKD 14.96 per share

- 2022-11: HKD 18.44 per share

- 2022-12: HKD 19.84 per share

- 2023-01: HKD 19.22 per share

- 2023-02: HKD 21.00 per share

- 2023-03: HKD 23.75 per share

- 2023-04: HKD 27.75 per share

- 2023-05: HKD 25.65 per share

- 2023-06: HKD 24.50 per share

- 2023-07: HKD 24.45 per share

- 2023-08: HKD 22.75 per share

- 2023-09: HKD 22.70 per share

- 2023-10: HKD 18.70 per share

- 2023-11: HKD 19.38 per share

- 2023-12: HKD 20.45 per share

- 2024-01: HKD 20.55 per share

- 2024-02: HKD 21.95 per share

- 2024-03: HKD 20.05 per share

- 2024-04: HKD 19.84 per share

- 2024-05: HKD 21.20 per share

- 2024-06: HKD 20.75 per share

- 2024-07: HKD 18.36 per share

- 2024-08: HKD 18.18 per share

- 2024-09: HKD 20.80 per share

- 2024-10: HKD 19.34 per share

- 2024-11: HKD 20.30 per share

- 2024-12: HKD 21.30 per share

- 2025-01: HKD 20.55 per share

- 2025-02: HKD 19.58 per share

- 2025-03: HKD 18.04 per share

- 2025-04: HKD 18.34 per share

- 2025-05: HKD 19.00 per share

- 2025-06: HKD 18.38 per share

- 2025-07: HKD 18.86 per share

- 2025-08: HKD 18.67 per share

- 2025-09: HKD 18.34 per share

- 2025-10: HKD 19.37 per share

- 2025-11: HKD 20.04 per share

- 2025-12: HKD 19.44 per share

- 2026-01: HKD 20.88 per share

- 2026-02: HKD 21.14 per share

- 2026-03: HKD 20.20 per share

- 2026-04: HKD 18.47 per share

- 2026-05: HKD 16.92 per share

- 2026-06: HKD 15.91 per share

- 2026-07: HKD 17.38 per share

- 2026-08: HKD 15.50 per share

- 2026-09: HKD 14.86 per share

- 2026-10: HKD 15.65 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 30.27 per share, central HKD 39.53 per share, high HKD 44.93 per share

- FY2017: low HKD 34.98 per share, central HKD 45.45 per share, high HKD 51.55 per share

- FY2018: low HKD 46.48 per share, central HKD 60.74 per share, high HKD 69.05 per share

- FY2019: low HKD 67.52 per share, central HKD 91.26 per share, high HKD 105.09 per share

- FY2020: low HKD 72.07 per share, central HKD 96.33 per share, high HKD 110.46 per share

- FY2021: low HKD 77.09 per share, central HKD 104.79 per share, high HKD 120.92 per share

- FY2022: low HKD 57.87 per share, central HKD 78.44 per share, high HKD 90.42 per share

- FY2023: low HKD 61.38 per share, central HKD 82.64 per share, high HKD 95.02 per share

- FY2024: low HKD 55.53 per share, central HKD 69.49 per share, high HKD 79.46 per share

- FY2025: low HKD 54.89 per share, central HKD 66.17 per share, high HKD 75.19 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 2026-10-15T06:42:41.860Z 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.