# Jiangsu Hengrui Medicine (600276.SHG)

Canonical: https://gigainvestors.com/s/600276.SHG

Analysis as of: 2026-10-16T07:33:58.413Z. Financial observations: FY1997–FY2025.

Listing currency: CNY. 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: CNY 46.60 per share; close as of 2026-10-15.

Estimated value: low CNY 17.28 per share, central CNY 22.57 per share, high CNY 25.51 per share. Buy at or below the central value CNY 22.57 per share. Valuation as of 2026-10-16T07:33:58.413Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% 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: 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: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.27×

- FY2017: 0.28×

- FY2018: 0.26×

- FY2019: 0.26×

- FY2020: 0.25×

- FY2021: 0.18×

- FY2022: 0.19×

- FY2023: 0.22×

- FY2024: 0.27×

- FY2025: 0.26×

### moat: pass

- ROIC, median of available years: 30.5%

- ROIC, second-lowest year: 22.8%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 86.4%

- Recent gross margin (lower of latest and 3-year median): 84.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.5%

- ROIC including acquisitions, ten-year median: 27.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 35.1%

- FY2017: 28.7%

- FY2018: 25.2%

- FY2019: 46.5%

- FY2020: 40.9%

- FY2021: 28.4%

- FY2022: 18.5%

- FY2023: 22.8%

- FY2024: 32.3%

- FY2025: 33.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.84×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 23B

- Net income, five-year total: CNY 27B

- Return on incremental invested capital: 42.6%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -3.1 pp

- Working capital / revenue, final three-year average: 25.7%

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

- FY2021: 0.74×

- FY2022: 0.62×

- FY2023: 0.89×

- FY2024: 1.00×

- FY2025: 0.86×

### management: pass

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 28.7% vs 32.3%

- Per-share earnings: 0.41 to 1.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 0.8%

- Market cap gain: CNY 290B

- Cumulative retained earnings: CNY 32B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.8%

- Per-share value change: CNY 0.59

- Per-share value, starting three-year median: CNY 0.41

- Per-share value, ending three-year median: CNY 1.00

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 0.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 6.7B

- Cumulative net income, 10 years: CNY 48B

- ROIC, first three-year median: 28.7%

- ROIC, last three-year median: 32.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.41

- FY2017: CNY 0.51

- FY2018: CNY 0.63

- FY2019: CNY 0.84

- FY2020: CNY 0.99

- FY2021: CNY 0.71

- FY2022: CNY 0.61

- FY2023: CNY 0.68

- FY2024: CNY 1.00

- FY2025: CNY 1.16

### accounting: pass

- Sloan accruals: -5.1%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.46×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: 3.7%

- FY2018: 5.8%

- FY2019: 5.5%

- FY2020: 8.3%

- FY2021: 0.8%

- FY2022: 6.2%

- FY2023: -7.6%

- FY2024: -2.2%

- FY2025: -5.1%

## Holders

## Price story

Down 35% since Sep 2025 · sales +12.3%

Story as of 2026-10-16T09:59:58.523Z; price observation 2026-10-15.

Price needs cash profits to grow 18.7% a year for ten years

- 2026-09-29: Hengrui Pharma shares rise as Novo Nordisk signs $2.6 billion drug deal ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/hengrui-pharma-shares-rise-novo-054650384.html))

### Sales · FY2024–2025

sales +12.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 11B 

- FY2017: CNY 14B 

- FY2018: CNY 17B 

- FY2019: CNY 23B 

- FY2020: CNY 28B 

- FY2021: CNY 26B 

- FY2022: CNY 21B 

- FY2023: CNY 23B 

- FY2024: CNY 28B 

- FY2025: CNY 31B 

### Gross margin · FY2025

gross margin 84.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 87.1% 

- FY2017: 86.6% 

- FY2018: 86.6% 

- FY2019: 87.5% 

- FY2020: 87.9% 

- FY2021: 85.5% 

- FY2022: 83.5% 

- FY2023: 84.4% 

- FY2024: 86.1% 

- FY2025: 84.9% 

## 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 31.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2025: revenue 31431028984; grossProfit 26673951780; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600276.SHG: Jiangsu Hengrui Pharmaceuticals Co.,Ltd, a pharmaceutical company, researches, develops, manufactures, and commercializes medicines to address unmet clinical needs in China and internationally. The company develops medicines in the areas of oncology, metabolic and cardiovascular, immunological and respiratory, neuroscience, pain management, infectious, respiratory system, hematological, ophthalmology, and autoimmune and other diseases. The company was founded in 1970 and is headquartered in Lianyungang, China.

### Why customers stay

Margins ranged from 84.4% to 86.1% during 2023–25; it earns 30.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2023: grossProfit / revenue = 84.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2024: grossProfit / revenue = 86.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2025: grossProfit / revenue = 84.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); 10-year return on capital observations [[2016,0.351475775149263],[2017,0.2868255850975135],[2018,0.251571793184572],[2019,0.4650265239229541],[2020,0.40904136684373765],[2021,0.28386224041777947],[2022,0.18548160181003417],[2023,0.22849339741122857],[2024,0.32296469603243116],[2025,0.33614552402983167]]; median 0.30489514056497236. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 84% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); Gross margin observations: [[2021,0.8550247927797335],[2022,0.8353335663738432],[2023,0.8438870041939484]]; range within 2 percentage points.

### Where the cash goes

Spends 14.2% of cash earnings on expansion; earns 42.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2016: growth capex 397015759.651366; upkeep 713981751.6886339; owner earnings 2128880343.311366. Growth capex / owner earnings = 0.18649040604782324.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2017: growth capex 63120595.26999998; upkeep 317181000; owner earnings 3216647998. Growth capex / owner earnings = 0.01962309687265942.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2018: growth capex 149694774.92000002; upkeep 379415000; owner earnings 4065609716. Growth capex / owner earnings = 0.03681976022707833.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2019: growth capex 0; upkeep 561351000.76; owner earnings 5385197518.24. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2020: growth capex 105939530.86000001; upkeep 448389000; owner earnings 6328383219. Growth capex / owner earnings = 0.01674037857598965.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2021: growth capex 0; upkeep 1664635232.23; owner earnings 3330858540.226. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2022: growth capex 0; upkeep 1992177711.16; owner earnings 2433545231.424. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2023: growth capex 366617668.8743818; upkeep 1117174079.1256182; owner earnings 3836742572.810382. Growth capex / owner earnings = 0.09555440895943076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2024: growth capex 1250741488; upkeep 718456000; owner earnings 6322719786.482. Growth capex / owner earnings = 0.197817004428077.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2025: growth capex 937630545.8473248; upkeep 2024275734.1526752; owner earnings 6620587980.591325. Growth capex / owner earnings = 0.14162345528766454.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); Incremental return on capital 0.4262091585310948, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); Dividend observations: [[2016,195676907.6],[2017,316907064.77],[2018,368244244.94],[2019,810889652],[2020,1017127148],[2021,1066246265],[2022,1014796584],[2023,1019873277],[2024,1274788274],[2025,1274130192]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); FY2025: cash repurchases 978151719 CNY.

### Are managers owners

Insiders own 46.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600276.SHG SharesStats.PercentInsiders = 46.262 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 18.7% yearly over ten years; actual growth was 11.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:58.413Z); Ten-year compound average after fade. Initial solved rate 0.3532600366995603. Price 46.6; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3431547326708066 → FY2025 0.9952370981023648. Closing-price date 2026-10-15.

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

- 2016-11: CNY 17.38 per share

- 2016-12: CNY 16.88 per share

- 2017-01: CNY 17.74 per share

- 2017-02: CNY 18.69 per share

- 2017-03: CNY 20.15 per share

- 2017-04: CNY 19.89 per share

- 2017-05: CNY 22.16 per share

- 2017-06: CNY 22.52 per share

- 2017-07: CNY 22.79 per share

- 2017-08: CNY 24.10 per share

- 2017-09: CNY 26.68 per share

- 2017-10: CNY 29.93 per share

- 2017-11: CNY 29.02 per share

- 2017-12: CNY 30.71 per share

- 2018-01: CNY 33.69 per share

- 2018-02: CNY 32.26 per share

- 2018-03: CNY 38.73 per share

- 2018-04: CNY 37.16 per share

- 2018-05: CNY 44.06 per share

- 2018-06: CNY 43.84 per share

- 2018-07: CNY 39.86 per share

- 2018-08: CNY 38.28 per share

- 2018-09: CNY 36.75 per share

- 2018-10: CNY 35.64 per share

- 2018-11: CNY 37.88 per share

- 2018-12: CNY 30.53 per share

- 2019-01: CNY 34.17 per share

- 2019-02: CNY 41.61 per share

- 2019-03: CNY 45.43 per share

- 2019-04: CNY 45.66 per share

- 2019-05: CNY 43.17 per share

- 2019-06: CNY 45.83 per share

- 2019-07: CNY 46.49 per share

- 2019-08: CNY 55.59 per share

- 2019-09: CNY 56.03 per share

- 2019-10: CNY 63.11 per share

- 2019-11: CNY 59.65 per share

- 2019-12: CNY 60.78 per share

- 2020-01: CNY 61.10 per share

- 2020-02: CNY 58.40 per share

- 2020-03: CNY 63.91 per share

- 2020-04: CNY 64.58 per share

- 2020-05: CNY 65.58 per share

- 2020-06: CNY 76.92 per share

- 2020-07: CNY 78.65 per share

- 2020-08: CNY 79.06 per share

- 2020-09: CNY 74.85 per share

- 2020-10: CNY 74.03 per share

- 2020-11: CNY 71.66 per share

- 2020-12: CNY 92.88 per share

- 2021-01: CNY 86.47 per share

- 2021-02: CNY 84.83 per share

- 2021-03: CNY 76.74 per share

- 2021-04: CNY 70.08 per share

- 2021-05: CNY 71.92 per share

- 2021-06: CNY 67.97 per share

- 2021-07: CNY 54.38 per share

- 2021-08: CNY 45.20 per share

- 2021-09: CNY 50.23 per share

- 2021-10: CNY 49.24 per share

- 2021-11: CNY 50.17 per share

- 2021-12: CNY 50.71 per share

- 2022-01: CNY 40.95 per share

- 2022-02: CNY 40.08 per share

- 2022-03: CNY 36.82 per share

- 2022-04: CNY 29.48 per share

- 2022-05: CNY 30.32 per share

- 2022-06: CNY 37.09 per share

- 2022-07: CNY 35.29 per share

- 2022-08: CNY 34.66 per share

- 2022-09: CNY 35.10 per share

- 2022-10: CNY 40.20 per share

- 2022-11: CNY 39.83 per share

- 2022-12: CNY 38.53 per share

- 2023-01: CNY 42.21 per share

- 2023-02: CNY 43.50 per share

- 2023-03: CNY 42.82 per share

- 2023-04: CNY 48.65 per share

- 2023-05: CNY 45.55 per share

- 2023-06: CNY 47.90 per share

- 2023-07: CNY 44.58 per share

- 2023-08: CNY 41.78 per share

- 2023-09: CNY 44.94 per share

- 2023-10: CNY 47.94 per share

- 2023-11: CNY 48.02 per share

- 2023-12: CNY 45.23 per share

- 2024-01: CNY 37.45 per share

- 2024-02: CNY 42.64 per share

- 2024-03: CNY 45.97 per share

- 2024-04: CNY 46.16 per share

- 2024-05: CNY 42.36 per share

- 2024-06: CNY 38.46 per share

- 2024-07: CNY 42.21 per share

- 2024-08: CNY 44.13 per share

- 2024-09: CNY 52.30 per share

- 2024-10: CNY 46.60 per share

- 2024-11: CNY 50.69 per share

- 2024-12: CNY 45.90 per share

- 2025-01: CNY 44.65 per share

- 2025-02: CNY 45.96 per share

- 2025-03: CNY 49.20 per share

- 2025-04: CNY 51.10 per share

- 2025-05: CNY 54.74 per share

- 2025-06: CNY 51.90 per share

- 2025-07: CNY 62.90 per share

- 2025-08: CNY 66.23 per share

- 2025-09: CNY 71.55 per share

- 2025-10: CNY 64.15 per share

- 2025-11: CNY 62.08 per share

- 2025-12: CNY 59.57 per share

- 2026-01: CNY 58.16 per share

- 2026-02: CNY 56.56 per share

- 2026-03: CNY 55.22 per share

- 2026-04: CNY 53.88 per share

- 2026-05: CNY 50.19 per share

- 2026-06: CNY 52.04 per share

- 2026-07: CNY 54.08 per share

- 2026-08: CNY 46.07 per share

- 2026-09: CNY 47.20 per share

- 2026-10: CNY 45.77 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 5.64 per share, central CNY 7.89 per share, high CNY 9.15 per share

- FY2017: low CNY 7.15 per share, central CNY 10.13 per share, high CNY 11.80 per share

- FY2018: low CNY 9.72 per share, central CNY 13.93 per share, high CNY 16.27 per share

- FY2019: low CNY 14.45 per share, central CNY 20.13 per share, high CNY 23.30 per share

- FY2020: low CNY 17.07 per share, central CNY 23.76 per share, high CNY 27.49 per share

- FY2021: low CNY 16.44 per share, central CNY 22.68 per share, high CNY 26.15 per share

- FY2022: low CNY 11.43 per share, central CNY 12.65 per share, high CNY 14.27 per share

- FY2023: low CNY 10.10 per share, central CNY 11.06 per share, high CNY 12.34 per share

- FY2024: low CNY 14.64 per share, central CNY 19.58 per share, high CNY 22.34 per share

- FY2025: low CNY 17.61 per share, central CNY 22.91 per share, high CNY 25.86 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 2026-10-15T06:39:45.389Z 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.