# Sino Biopharmaceutical (1177.HK)

Canonical: https://gigainvestors.com/s/1177.HK

Analysis as of: 2026-10-16T07:35:35.484Z. Financial observations: FY1999–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 5.27 per share; close as of 2026-10-15.

Estimated value: low HKD 2.72 per share, central HKD 3.42 per share, high HKD 3.89 per share. Buy at or below the central value HKD 3.42 per share. Valuation as of 2026-10-16T07:35:35.484Z; scenarios are not confidence intervals.

Expected annual return: 7.2% at the stated quote. About 7.2% 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: 0.09×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.22×

- FY2018: 0.21×

- FY2019: 0.22×

- FY2020: 0.18×

- FY2021: 0.16×

- FY2022: 0.21×

- FY2023: 0.23×

- FY2024: 0.22×

- FY2025: 0.22×

### moat: pass

- ROIC, median of available years: 25.9%

- ROIC, second-lowest year: 18.2%

- Typical minus recent gross margin: -1.5 pp

- Typical gross margin (annual median): 80.0%

- Recent gross margin (lower of latest and 3-year median): 81.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.0%

- ROIC including acquisitions, ten-year median: 14.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 71.1%

- FY2019: 35.7%

- FY2020: 25.8%

- FY2021: 15.0%

- FY2022: 18.2%

- FY2023: 18.4%

- FY2024: 22.1%

- FY2025: 26.0%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 24B

- Net income, five-year total: CNY 25B

- Return on incremental invested capital: 29.2%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 2.4 pp

- Working capital / revenue, final three-year average: 18.4%

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

- FY2021: 0.99×

- FY2022: 0.71×

- FY2023: 0.72×

- FY2024: 0.99×

- FY2025: 1.00×

### 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: 106.9% vs 22.1%

- Per-share earnings: 0.10 to 0.13 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

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

- Market cap gain: CNY -80B

- Cumulative retained earnings: CNY 20B

- Diluted shares, 10-year annual growth: 0.8%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.5%

- Per-share value change: CNY 0.03

- Per-share value, starting three-year median: CNY 0.10

- Per-share value, ending three-year median: CNY 0.13

- Buybacks concentrated in cheaper years (correlation): 0.57

- Average buyback yield: 0.7%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 29B

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 22.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.10

- FY2017: CNY 0.15

- FY2018: CNY 0.49

- FY2019: CNY 0.14

- FY2020: CNY 0.15

- FY2021: CNY 0.78

- FY2022: CNY 0.13

- FY2023: CNY 0.13

- FY2024: CNY 0.19

- FY2025: CNY 0.13

### accounting: pass

- Sloan accruals: -9.1%

- Receivables to sales index (DSRI): 1.20×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.97×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.23×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.9%

- FY2017: -7.5%

- FY2018: 7.9%

- FY2019: -4.5%

- FY2020: -5.4%

- FY2021: 15.3%

- FY2022: -5.8%

- FY2023: -5.9%

- FY2024: -4.8%

- FY2025: -9.1%

## Holders

## Price story

Down 35% since Sep 2025 · sales +10.3%

Story as of 2026-10-16T10:00:05.627Z; price observation 2026-10-15.

Price needs cash profits to grow 11.3% a year for ten years

### Sales · FY2024–2025

sales +10.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 14B 

- FY2017: CNY 15B 

- FY2018: CNY 21B 

- FY2019: CNY 24B 

- FY2020: CNY 24B 

- FY2021: CNY 27B 

- FY2022: CNY 26B 

- FY2023: CNY 26B 

- FY2024: CNY 29B 

- FY2025: CNY 32B 

### Gross margin · FY2025

gross margin 82.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 79.2% 

- FY2017: 79.1% 

- FY2018: 79.9% 

- FY2019: 79.7% 

- FY2020: 78.1% 

- FY2021: 80.1% 

- FY2022: 82.8% 

- FY2023: 81.0% 

- FY2024: 81.5% 

- FY2025: 82.1% 

## Owner memo

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

### How it makes money

Annual sales are CNY 31.8 billion.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2025-12-31 (filed 2026-10-16T07:35:35.484Z); FY2025: revenue 31834488000; grossProfit 26126748000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1177.HK: Sino Biopharmaceutical Limited, an investment holding company, operates as a research and development pharmaceutical conglomerate in the People's Republic of China. It operates through three segments: Modernised Chinese Medicines and Chemical Medicines, Investment, and Others. The company offers oncology medicines, including anlotinib hydrochloride capsules under Focus V brand, penpulimab injection under Annike brand, efbemalenograstin alfa injection under Yilishu brand, benmelstobart injection under Andewei brand, unecritinib fumarate capsules under Anboni brand, envonalkib citrate capsule under Anluoqing brand, garsorasib tablets under Anfangning brand, bevacizumab injection under Anbeisi brand, culmerciclib capsule under Saitanxin brand, zongertinib tablets under Hernexeos brand, rovadicitinib tablet under Anxu brand,rituximab injection under Delituo brand, trastuzumab for injection under Saituo brand, and pertuzumab injection, under Paletan brand; liver disease medications, such as magnesium isoglycyrrhizinate injection under Tianqing Ganmei brand and entecavir dispersible tablets under Runzhong brand; and respiratory system medicines comprising budesonide suspension for inhalation under Tianqing suchang brand. It also provides surgery/analgesia medicines, including flurbiprofen cataplasms under the brand Zepolas, limaprost tablets under the brand Kailitong, and recombinant human coagulation factor VIII for injection under the brand Anqixin. In addition, the company develops liver disease drugs, such as Lanifibranor and TQA2225; respiratory system drugs comprising TDI01, TQC2731, TCR1672, TQC3721, and TQH3906; and surgery/analgesia drugs, including PL-5, an antimicrobial peptide, TRD205, an AT2R inhibitor, and TRD208. Further, it is involved in the long-term investments; and healthcare and hospital business. The company was incorporated in 2000 and is headquartered in Wan Chai, Hong Kong.

### Why customers stay

Margins ranged from 81% to 82.1% during 2023–25; it earns 25.9% on its capital.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2023-12-31 (filed 2026-10-16T07:35:35.484Z); FY2023: grossProfit / revenue = 81%.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2024-12-31 (filed 2026-10-16T07:35:35.484Z); FY2024: grossProfit / revenue = 81.5%.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2025-12-31 (filed 2026-10-16T07:35:35.484Z); FY2025: grossProfit / revenue = 82.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); 10-year return on capital observations [[2016,1.0692939814435392],[2017,1.2958906489142432],[2018,0.7109116509017264],[2019,0.35669199771508325],[2020,0.2581596165241738],[2021,0.14998894182998182],[2022,0.18159274510922008],[2023,0.1836573468568193],[2024,0.22140898038777398],[2025,0.2603747140949723]]; median 0.25926716530957306. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 29.2% on new investment; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); FY2016: growth capex 302631291.6062081; upkeep 632594326.3937919; owner earnings 1322188673.606208. Growth capex / owner earnings = 0.22888661629568746.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); FY2017: growth capex 286942313.0660715; upkeep 1173237686.9339285; owner earnings 1341102313.0660715. Growth capex / owner earnings = 0.21396004635176172.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); FY2018: growth capex 516615000; upkeep 1176124000; owner earnings 9046347000. Growth capex / owner earnings = 0.0571075816569937.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2019-12-31 (filed 2026-10-16T07:35:35.484Z); FY2019: growth capex 267935000; upkeep 1466028000; owner earnings 2693924200. Growth capex / owner earnings = 0.09945899739866475.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2020-12-31 (filed 2026-10-16T07:35:35.484Z); FY2020: growth capex 0; upkeep 1859145000; owner earnings 2508065000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2021-12-31 (filed 2026-10-16T07:35:35.484Z); FY2021: growth capex 901428000; upkeep 992556000; owner earnings 14531527600. Growth capex / owner earnings = 0.06203256978984095.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2022-12-31 (filed 2026-10-16T07:35:35.484Z); FY2022: growth capex 0; upkeep 1705612000; cash acquisitions 146168000; owner earnings 1808003200. Growth capex plus acquisitions / owner earnings = 0.08084498965488557.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2023-12-31 (filed 2026-10-16T07:35:35.484Z); FY2023: growth capex 58681412.253825426; upkeep 1645027587.7461746; cash acquisitions 742706000; owner earnings 1687219012.2538254. Growth capex plus acquisitions / owner earnings = 0.4749753330383078.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2024-12-31 (filed 2026-10-16T07:35:35.484Z); FY2024: growth capex 72979000; upkeep 1321181000; cash acquisitions 0; owner earnings 3477488800. Growth capex plus acquisitions / owner earnings = 0.020986120789231587.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2025-12-31 (filed 2026-10-16T07:35:35.484Z); FY2025: growth capex 491346000; upkeep 1211583000; cash acquisitions 5304193000; owner earnings 2335358569.5629473. Growth capex plus acquisitions / owner earnings = 2.481648460983279.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); Incremental return on capital 0.2922071815435956, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); Dividend observations: [[2016,375573000],[2017,449964000],[2018,710328000],[2019,819688000],[2020,1187015000],[2021,938489000],[2022,1267622000],[2023,632669000],[2024,1846381000],[2025,1502649000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/SMZ1.STU.json#2025-12-31 (filed 2026-10-16T07:35:35.484Z); FY2025: cash repurchases 110000000 CNY.

### Are managers owners

Insiders own 48.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1177.HK SharesStats.PercentInsiders = 48.661 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.3% yearly over ten years; actual growth was 6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:35.484Z); Ten-year compound average after fade. Initial solved rate 0.14963584472291236. Price 5.27; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.07206587006381077 → FY2025 0.1293338727784752. Closing-price date 2026-10-15.

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

- 2016-10: HKD 12.22 per share

- 2016-11: HKD 11.97 per share

- 2016-12: HKD 12.29 per share

- 2017-01: HKD 13.84 per share

- 2017-02: HKD 15.08 per share

- 2017-03: HKD 14.40 per share

- 2017-04: HKD 14.40 per share

- 2017-05: HKD 15.64 per share

- 2017-06: HKD 15.53 per share

- 2017-07: HKD 15.53 per share

- 2017-08: HKD 15.46 per share

- 2017-09: HKD 18.59 per share

- 2017-10: HKD 20.50 per share

- 2017-11: HKD 23.00 per share

- 2017-12: HKD 31.19 per share

- 2018-01: HKD 32.45 per share

- 2018-02: HKD 33.35 per share

- 2018-03: HKD 34.65 per share

- 2018-04: HKD 37.58 per share

- 2018-05: HKD 44.64 per share

- 2018-06: HKD 18.06 per share

- 2018-07: HKD 16.08 per share

- 2018-08: HKD 14.91 per share

- 2018-09: HKD 10.95 per share

- 2018-10: HKD 10.55 per share

- 2018-11: HKD 10.71 per share

- 2018-12: HKD 7.74 per share

- 2019-01: HKD 9.90 per share

- 2019-02: HKD 10.22 per share

- 2019-03: HKD 10.74 per share

- 2019-04: HKD 11.31 per share

- 2019-05: HKD 11.87 per share

- 2019-06: HKD 11.99 per share

- 2019-07: HKD 14.52 per share

- 2019-08: HKD 17.49 per share

- 2019-09: HKD 14.94 per share

- 2019-10: HKD 17.58 per share

- 2019-11: HKD 15.15 per share

- 2019-12: HKD 16.35 per share

- 2020-01: HKD 15.63 per share

- 2020-02: HKD 16.92 per share

- 2020-03: HKD 15.33 per share

- 2020-04: HKD 17.01 per share

- 2020-05: HKD 18.30 per share

- 2020-06: HKD 21.90 per share

- 2020-07: HKD 10.10 per share

- 2020-08: HKD 8.95 per share

- 2020-09: HKD 8.44 per share

- 2020-10: HKD 7.82 per share

- 2020-11: HKD 7.80 per share

- 2020-12: HKD 7.50 per share

- 2021-01: HKD 7.23 per share

- 2021-02: HKD 8.63 per share

- 2021-03: HKD 7.78 per share

- 2021-04: HKD 8.37 per share

- 2021-05: HKD 8.72 per share

- 2021-06: HKD 7.62 per share

- 2021-07: HKD 6.60 per share

- 2021-08: HKD 6.51 per share

- 2021-09: HKD 6.46 per share

- 2021-10: HKD 5.76 per share

- 2021-11: HKD 5.69 per share

- 2021-12: HKD 5.46 per share

- 2022-01: HKD 5.36 per share

- 2022-02: HKD 4.98 per share

- 2022-03: HKD 4.89 per share

- 2022-04: HKD 4.15 per share

- 2022-05: HKD 4.41 per share

- 2022-06: HKD 4.97 per share

- 2022-07: HKD 4.54 per share

- 2022-08: HKD 4.14 per share

- 2022-09: HKD 3.69 per share

- 2022-10: HKD 3.81 per share

- 2022-11: HKD 4.58 per share

- 2022-12: HKD 4.57 per share

- 2023-01: HKD 4.55 per share

- 2023-02: HKD 4.05 per share

- 2023-03: HKD 4.40 per share

- 2023-04: HKD 4.34 per share

- 2023-05: HKD 3.73 per share

- 2023-06: HKD 3.41 per share

- 2023-07: HKD 3.52 per share

- 2023-08: HKD 2.98 per share

- 2023-09: HKD 2.83 per share

- 2023-10: HKD 3.04 per share

- 2023-11: HKD 3.84 per share

- 2023-12: HKD 3.47 per share

- 2024-01: HKD 2.81 per share

- 2024-02: HKD 3.13 per share

- 2024-03: HKD 3.02 per share

- 2024-04: HKD 2.70 per share

- 2024-05: HKD 2.84 per share

- 2024-06: HKD 2.67 per share

- 2024-07: HKD 2.81 per share

- 2024-08: HKD 3.23 per share

- 2024-09: HKD 3.73 per share

- 2024-10: HKD 3.53 per share

- 2024-11: HKD 3.25 per share

- 2024-12: HKD 3.20 per share

- 2025-01: HKD 2.82 per share

- 2025-02: HKD 3.22 per share

- 2025-03: HKD 3.75 per share

- 2025-04: HKD 3.91 per share

- 2025-05: HKD 4.45 per share

- 2025-06: HKD 5.26 per share

- 2025-07: HKD 7.52 per share

- 2025-08: HKD 8.11 per share

- 2025-09: HKD 8.14 per share

- 2025-10: HKD 7.07 per share

- 2025-11: HKD 7.05 per share

- 2025-12: HKD 6.18 per share

- 2026-01: HKD 6.64 per share

- 2026-02: HKD 6.05 per share

- 2026-03: HKD 5.89 per share

- 2026-04: HKD 5.42 per share

- 2026-05: HKD 4.99 per share

- 2026-06: HKD 4.41 per share

- 2026-07: HKD 5.03 per share

- 2026-08: HKD 5.45 per share

- 2026-09: HKD 5.71 per share

- 2026-10: HKD 5.27 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 1.95 per share, central HKD 2.57 per share, high HKD 2.92 per share

- FY2017: low HKD 2.38 per share, central HKD 3.07 per share, high HKD 3.47 per share

- FY2018: low HKD 2.58 per share, central HKD 3.34 per share, high HKD 3.78 per share

- FY2019: low HKD 2.83 per share, central HKD 3.69 per share, high HKD 4.19 per share

- FY2020: low HKD 3.11 per share, central HKD 4.02 per share, high HKD 4.55 per share

- FY2021: low HKD 3.48 per share, central HKD 4.56 per share, high HKD 5.19 per share

- FY2022: low HKD 3.22 per share, central HKD 4.26 per share, high HKD 4.86 per share

- FY2023: low HKD 3.23 per share, central HKD 4.40 per share, high HKD 5.05 per share

- FY2024: low HKD 3.53 per share, central HKD 4.84 per share, high HKD 5.57 per share

- FY2025: low HKD 2.57 per share, central HKD 3.22 per share, high HKD 3.66 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

## 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.