# Shanghai Fosun Pharmaceutical Group (600196.SHG)

Canonical: https://gigainvestors.com/s/600196.SHG

Analysis as of: 2026-10-16T07:36:05.322Z. Financial observations: FY1996–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 23.19 per share; close as of 2026-10-15.

Estimated value: low CNY 11.35 per share, central CNY 12.33 per share, high CNY 13.62 per share. Buy at or below the central value CNY 12.33 per share. Valuation as of 2026-10-16T07:36:05.322Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% 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: 0

- Operating margin variation: 0.37×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.22×

- FY2018: 0.14×

- FY2019: 0.16×

- FY2020: 0.16×

- FY2021: 0.16×

- FY2022: 0.11×

- FY2023: 0.08×

- FY2024: 0.10×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 4.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.4%

- ROIC, second-lowest year: 5.9%

- Typical minus recent gross margin: 4.8 pp

- Typical gross margin (annual median): 50.9%

- Recent gross margin (lower of latest and 3-year median): 46.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.8%

- ROIC including acquisitions, ten-year median: 4.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.8%

- FY2017: 12.1%

- FY2018: 9.0%

- FY2019: 10.7%

- FY2020: 9.8%

- FY2021: 13.1%

- FY2022: 8.5%

- FY2023: 5.9%

- FY2024: 6.9%

- FY2025: 3.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.56×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 9.5B

- Net income, five-year total: CNY 17B

- Return on incremental invested capital: -2.2%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 27.8%

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

- FY2021: 0.97×

- FY2022: 0.48×

- FY2023: -0.05×

- FY2024: 0.32×

- FY2025: 0.70×

### management: fail

- 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: 12.1% vs 5.9%

- Per-share earnings: 1.20 to 1.04 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

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

- Ordinary dilution, 5-year annual growth: 0.7%

- Market cap gain: CNY 16B

- Cumulative retained earnings: CNY 21B

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

- Diluted shares, 5-year annual growth: 0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.8%

- Per-share value change: CNY -0.16

- Per-share value, starting three-year median: CNY 1.20

- Per-share value, ending three-year median: CNY 1.04

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.5%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 25B

- Cumulative net income, 10 years: CNY 33B

- ROIC, first three-year median: 12.1%

- ROIC, last three-year median: 5.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.20

- FY2017: CNY 1.24

- FY2018: CNY 1.01

- FY2019: CNY 1.33

- FY2020: CNY 1.44

- FY2021: CNY 1.84

- FY2022: CNY 1.40

- FY2023: CNY 0.89

- FY2024: CNY 1.04

- FY2025: CNY 1.28

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 1.18×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.78×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.64×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.6%

- FY2017: 0.9%

- FY2018: -0.3%

- FY2019: 0.1%

- FY2020: 1.3%

- FY2021: 0.8%

- FY2022: -0.5%

- FY2023: -1.7%

- FY2024: -1.5%

- FY2025: -2.2%

## Holders

## Price story

Down 59% since Nov 2021 · sales +1.1%

Story as of 2026-10-16T10:00:06.737Z; price observation 2026-10-15.

Price needs cash profits to grow 11.7% a year for ten years

### Sales · FY2024–2025

sales +1.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 15B 

- FY2017: CNY 19B 

- FY2018: CNY 25B 

- FY2019: CNY 29B 

- FY2020: CNY 30B 

- FY2021: CNY 39B 

- FY2022: CNY 44B 

- FY2023: CNY 41B 

- FY2024: CNY 41B 

- FY2025: CNY 42B 

### Gross margin · FY2025

gross margin 46.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 53.8% 

- FY2017: 58.8% 

- FY2018: 58.3% 

- FY2019: 59.6% 

- FY2020: 54.5% 

- FY2021: 48.0% 

- FY2022: 47.1% 

- FY2023: 47.5% 

- FY2024: 47.8% 

- FY2025: 46.1% 

## 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 41.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2025: revenue 41504097000; grossProfit 19117787000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600196.SHG: Shanghai Fosun Pharmaceutical (Group) Co., Ltd. engages in the pharmaceutical business in Mainland China and internationally. It operates through five segments: Pharmaceuticals, Medical Devices and Medical Diagnosis, Medical Services, Medical Distribution and Retail, and Others. The company is involved in the pharmaceutical manufacturing in the therapeutic areas of solid oncology, including tumors and hematologic malignancies, as well as immune-inflammatory disorders, metabolism and digestive systems, anti-infection, central nervous system, cardiovascular system, and APIs and intermediates. It also offers mRNA vaccines; medical aesthetic devices, such as medical aesthetic capital equipment, aesthetic dentistry, injectables, and personal care business units; mechanical ventilation devices under the Breas brand; and mobile pre-hospital care; professional in-hospital surgery and covers medical devices; and high-end surgical robots and medical consumables. In addition, the company provides diagnostics solutions comprising biochemical diagnostics, immune diagnostics, molecular diagnostics, microbiological diagnostics, pathological diagnostics, and chronic care management; and healthcare services, specialized medical treatment, online and offline medical services, and insurance services. Further, it engages in the operation of hospitals; and distribution and retail of healthcare products. Shanghai Fosun Pharmaceutical (Group) Co., Ltd. was founded in 1994 and is based in Shanghai, China.

### Why customers stay

Margins ranged from 46.1% to 47.8% during 2023–25; it earns 9.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2023: grossProfit / revenue = 47.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2024: grossProfit / revenue = 47.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2025: grossProfit / revenue = 46.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); 10-year return on capital observations [[2016,0.12812921684074796],[2017,0.1211584924613942],[2018,0.08992715371437582],[2019,0.1068323249383839],[2020,0.09842410041375184],[2021,0.13144067324391426],[2022,0.0849151332857266],[2023,0.05921518574972722],[2024,0.06886423369505121],[2025,0.035380448072375566]]; median 0.09417562706406382. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 47% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); Gross margin observations: [[2021,0.4797800805020427],[2022,0.47087152586460723],[2023,0.4754374565514496]]; range within 2 percentage points.

### Where the cash goes

Spends 9% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2016: growth capex 939619437.3432932; upkeep 982342215.2467067; owner earnings 2549505430.753293. Growth capex / owner earnings = 0.36854969046512964.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2017: growth capex 1242877415.7199998; upkeep 927739361; owner earnings 3124499552. Growth capex / owner earnings = 0.397784475572874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2018: growth capex 1854828004.9699998; upkeep 1320083000; owner earnings 2707923000. Growth capex / owner earnings = 0.6849633482820596.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2019: growth capex 1533344094.3565917; upkeep 2428715053.9434085; owner earnings 2188964946.0565915. Growth capex / owner earnings = 0.7004881906030075.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2020: growth capex 710294483.3716183; upkeep 3726824565.518382; owner earnings 1401044434.481618. Growth capex / owner earnings = 0.5069749865816533.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2021: growth capex 3325714604.42; upkeep 1646872000; owner earnings 4599038958.976. Growth capex / owner earnings = 0.7231325140069019.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2022: growth capex 1865615156.8175478; upkeep 4023223700.122452; owner earnings 1792008539.3723319. Growth capex / owner earnings = 1.041074925608891.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2024: growth capex 0; upkeep 4410191178; owner earnings 894218041.9743052. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2025: growth capex 212920620.9358554; upkeep 4235531011.0641446; owner earnings 2360091325.048679. Growth capex / owner earnings = 0.09021711095500244.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); Dividend observations: [[2016,1193520425],[2017,1433537195],[2018,1775533950],[2019,818626825],[2020,1000505109],[2021,1102997088],[2022,1435464987],[2023,2455169728],[2024,2059419627],[2025,844702310]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); FY2025: cash repurchases 411788500 CNY.

### Are managers owners

Insiders own 43% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600196.SHG SharesStats.PercentInsiders = 43.015 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.7% yearly over ten years; actual decline was 0.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:05.322Z); Ten-year compound average after fade. Initial solved rate 0.15524417008691038. Price 23.19; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9103909172636612 → FY2025 0.8941250058290826. Closing-price date 2026-10-15.

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

- 2016-10: CNY 23.77 per share

- 2016-11: CNY 23.80 per share

- 2016-12: CNY 23.14 per share

- 2017-01: CNY 24.92 per share

- 2017-02: CNY 25.77 per share

- 2017-03: CNY 28.22 per share

- 2017-04: CNY 29.54 per share

- 2017-05: CNY 31.68 per share

- 2017-06: CNY 30.99 per share

- 2017-07: CNY 29.15 per share

- 2017-08: CNY 29.26 per share

- 2017-09: CNY 34.19 per share

- 2017-10: CNY 39.84 per share

- 2017-11: CNY 36.66 per share

- 2017-12: CNY 44.50 per share

- 2018-01: CNY 40.59 per share

- 2018-02: CNY 39.90 per share

- 2018-03: CNY 44.49 per share

- 2018-04: CNY 38.46 per share

- 2018-05: CNY 46.29 per share

- 2018-06: CNY 41.39 per share

- 2018-07: CNY 37.00 per share

- 2018-08: CNY 29.20 per share

- 2018-09: CNY 31.55 per share

- 2018-10: CNY 25.40 per share

- 2018-11: CNY 27.84 per share

- 2018-12: CNY 23.27 per share

- 2019-01: CNY 23.23 per share

- 2019-02: CNY 28.78 per share

- 2019-03: CNY 29.78 per share

- 2019-04: CNY 28.33 per share

- 2019-05: CNY 24.74 per share

- 2019-06: CNY 25.30 per share

- 2019-07: CNY 26.30 per share

- 2019-08: CNY 27.65 per share

- 2019-09: CNY 25.27 per share

- 2019-10: CNY 25.46 per share

- 2019-11: CNY 25.15 per share

- 2019-12: CNY 26.60 per share

- 2020-01: CNY 26.18 per share

- 2020-02: CNY 26.88 per share

- 2020-03: CNY 32.86 per share

- 2020-04: CNY 33.63 per share

- 2020-05: CNY 30.75 per share

- 2020-06: CNY 33.85 per share

- 2020-07: CNY 62.23 per share

- 2020-08: CNY 54.82 per share

- 2020-09: CNY 49.11 per share

- 2020-10: CNY 54.38 per share

- 2020-11: CNY 52.00 per share

- 2020-12: CNY 53.99 per share

- 2021-01: CNY 45.47 per share

- 2021-02: CNY 46.04 per share

- 2021-03: CNY 39.79 per share

- 2021-04: CNY 60.24 per share

- 2021-05: CNY 69.40 per share

- 2021-06: CNY 72.13 per share

- 2021-07: CNY 81.88 per share

- 2021-08: CNY 63.30 per share

- 2021-09: CNY 52.30 per share

- 2021-10: CNY 50.00 per share

- 2021-11: CNY 56.00 per share

- 2021-12: CNY 48.94 per share

- 2022-01: CNY 42.53 per share

- 2022-02: CNY 42.40 per share

- 2022-03: CNY 53.33 per share

- 2022-04: CNY 42.98 per share

- 2022-05: CNY 43.80 per share

- 2022-06: CNY 44.09 per share

- 2022-07: CNY 43.90 per share

- 2022-08: CNY 40.36 per share

- 2022-09: CNY 29.56 per share

- 2022-10: CNY 33.03 per share

- 2022-11: CNY 37.10 per share

- 2022-12: CNY 35.24 per share

- 2023-01: CNY 34.02 per share

- 2023-02: CNY 33.70 per share

- 2023-03: CNY 32.39 per share

- 2023-04: CNY 31.70 per share

- 2023-05: CNY 31.18 per share

- 2023-06: CNY 30.90 per share

- 2023-07: CNY 31.70 per share

- 2023-08: CNY 27.93 per share

- 2023-09: CNY 28.60 per share

- 2023-10: CNY 28.44 per share

- 2023-11: CNY 27.90 per share

- 2023-12: CNY 25.03 per share

- 2024-01: CNY 21.82 per share

- 2024-02: CNY 24.58 per share

- 2024-03: CNY 23.07 per share

- 2024-04: CNY 23.67 per share

- 2024-05: CNY 23.17 per share

- 2024-06: CNY 22.14 per share

- 2024-07: CNY 23.58 per share

- 2024-08: CNY 22.54 per share

- 2024-09: CNY 27.67 per share

- 2024-10: CNY 26.60 per share

- 2024-11: CNY 26.68 per share

- 2024-12: CNY 24.85 per share

- 2025-01: CNY 23.80 per share

- 2025-02: CNY 24.99 per share

- 2025-03: CNY 24.83 per share

- 2025-04: CNY 23.40 per share

- 2025-05: CNY 25.37 per share

- 2025-06: CNY 25.09 per share

- 2025-07: CNY 27.59 per share

- 2025-08: CNY 28.84 per share

- 2025-09: CNY 29.84 per share

- 2025-10: CNY 29.20 per share

- 2025-11: CNY 27.13 per share

- 2025-12: CNY 26.49 per share

- 2026-01: CNY 26.67 per share

- 2026-02: CNY 26.48 per share

- 2026-03: CNY 26.63 per share

- 2026-04: CNY 24.89 per share

- 2026-05: CNY 23.25 per share

- 2026-06: CNY 22.47 per share

- 2026-07: CNY 23.23 per share

- 2026-08: CNY 22.36 per share

- 2026-09: CNY 24.02 per share

- 2026-10: CNY 23.51 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 16.93 per share, central CNY 23.13 per share, high CNY 26.73 per share

- FY2017: low CNY 19.80 per share, central CNY 27.07 per share, high CNY 31.31 per share

- FY2018: low CNY 24.79 per share, central CNY 34.02 per share, high CNY 39.39 per share

- FY2019: low CNY 24.95 per share, central CNY 27.86 per share, high CNY 31.75 per share

- FY2020: low CNY 19.26 per share, central CNY 22.17 per share, high CNY 25.09 per share

- FY2021: low CNY 27.79 per share, central CNY 37.40 per share, high CNY 43.00 per share

- FY2022: low CNY 20.39 per share, central CNY 23.48 per share, high CNY 26.40 per share

- FY2023: low CNY 13.75 per share, central CNY 16.94 per share, high CNY 19.06 per share

- FY2024: low CNY 11.40 per share, central CNY 12.35 per share, high CNY 13.61 per share

- FY2025: low CNY 11.37 per share, central CNY 12.34 per share, high CNY 13.63 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 2026-10-15T06:41:47.934Z 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