# Zhangzhou Pientzehuang Pharmaceutical (600436.SHG)

Canonical: https://gigainvestors.com/s/600436.SHG

Analysis as of: 2026-10-16T07:35:44.521Z. Financial observations: FY2000–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 120.89 per share; close as of 2026-10-15.

Estimated value: low CNY 43.43 per share, central CNY 48.98 per share, high CNY 56.35 per share. Buy at or below the central value CNY 48.98 per share. Valuation as of 2026-10-16T07:35:44.521Z; scenarios are not confidence intervals.

Expected annual return: 5.7% at the stated quote. About 5.7% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.26×

- FY2017: 0.26×

- FY2018: 0.28×

- FY2019: 0.29×

- FY2020: 0.30×

- FY2021: 0.36×

- FY2022: 0.34×

- FY2023: 0.34×

- FY2024: 0.33×

- FY2025: 0.25×

### moat: fail

- Recent gross margin fell 8.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 35.9%

- ROIC, second-lowest year: 20.8%

- Typical minus recent gross margin: 8.1 pp

- Typical gross margin (annual median): 44.5%

- Recent gross margin (lower of latest and 3-year median): 36.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 35.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.8%

- FY2017: 32.1%

- FY2018: 39.8%

- FY2019: 45.1%

- FY2020: 49.5%

- FY2021: 70.9%

- FY2022: 25.4%

- FY2023: 66.2%

- FY2024: 29.2%

- FY2025: 13.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.89×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 11B

- Net income, five-year total: CNY 13B

- Return on incremental invested capital: 19.1%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 7.2 pp

- Working capital / revenue, final three-year average: 54.7%

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

- FY2021: 1.00×

- FY2022: 0.95×

- FY2023: 0.99×

- FY2024: 0.67×

- FY2025: 0.89×

### 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: 32.1% vs 29.2%

- Per-share earnings: 0.89 to 4.64 (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: 0.0%

- Market cap gain: CNY 74B

- Cumulative retained earnings: CNY 8.8B

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

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 23.0%

- Per-share value change: CNY 3.75

- Per-share value, starting three-year median: CNY 0.89

- Per-share value, ending three-year median: CNY 4.64

- Average buyback yield: 0.2%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 380M

- Cumulative net income, 10 years: CNY 18B

- ROIC, first three-year median: 32.1%

- ROIC, last three-year median: 29.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.89

- FY2017: CNY 1.34

- FY2018: CNY 1.89

- FY2019: CNY 2.27

- FY2020: CNY 2.77

- FY2021: CNY 4.02

- FY2022: CNY 4.10

- FY2023: CNY 4.64

- FY2024: CNY 4.93

- FY2025: CNY 3.58

### accounting: pass

- Sloan accruals exceed 10%

- Sloan accruals: 11.9%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.04×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.8%

- FY2017: 2.3%

- FY2018: 8.0%

- FY2019: 25.6%

- FY2020: 2.0%

- FY2021: 15.8%

- FY2022: -30.1%

- FY2023: 3.5%

- FY2024: 9.5%

- FY2025: 11.9%

## Holders

## Price story

Down 73% since Nov 2021 · sales -16.6%

Story as of 2026-10-16T10:00:05.969Z; price observation 2026-10-15.

Price needs cash profits to grow 12.8% a year for ten years

### Sales · FY2024–2025

sales -16.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 2.3B 

- FY2017: CNY 3.7B 

- FY2018: CNY 4.8B 

- FY2019: CNY 5.7B 

- FY2020: CNY 6.5B 

- FY2021: CNY 8.0B 

- FY2022: CNY 8.7B 

- FY2023: CNY 10B 

- FY2024: CNY 11B 

- FY2025: CNY 9.0B 

### Gross margin · FY2025

gross margin 36.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 48.3% 

- FY2017: 43.1% 

- FY2018: 42.2% 

- FY2019: 44.1% 

- FY2020: 44.9% 

- FY2021: 50.5% 

- FY2022: 45.5% 

- FY2023: 46.7% 

- FY2024: 42.6% 

- FY2025: 36.4% 

## Owner memo

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

### How it makes money

Operates in drug manufacturers general; annual sales are CNY 9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2025: revenue 9001411806.06; grossProfit 3278907739.23; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600436.SHG: Zhangzhou Pientzehuang Pharmaceutical Co., Ltd., together with its subsidiaries, manufactures and distributes pharmaceuticals and cosmetics in China and internationally. The company offers traditional Chinese medicines and health products in various forms, including capsule, ointment, tablet, syrup, and pill; health care food and functional drinks; special efficacy cosmetics; and household chemicals under the Pien Tze Huang brand name. It is also involved in the sale of food; production of skin, hair, and oral care daily products; biotechnology and medical device research and development; sale of medical machinery; and online wholesale and retail. The company's products are used for liver diseases, cardiovascular and cerebrovascular, cancer, cold, dermatology, and other applications. It exports its products. The company was founded in 1956 and is based in Zhangzhou, China. Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. operates as a subsidiary of Zhangzhou Jiulongjiang Group Co., Ltd.

### Why customers stay

Margins ranged from 36.4% to 46.7% during 2023–25; it earns 35.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2023: grossProfit / revenue = 46.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2024: grossProfit / revenue = 42.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2025: grossProfit / revenue = 36.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); 10-year return on capital observations [[2016,0.20822110888408138],[2017,0.32127077919410485],[2018,0.39752809192854094],[2019,0.45076287478272153],[2020,0.49465758892466594],[2021,0.708689549690461],[2022,0.2535842643257841],[2023,0.6623868220388723],[2024,0.2915983214004848],[2025,0.1328326458990556]]; median 0.3593994355613229. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 172.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2016: growth capex 44583602.44; upkeep 46388982; owner earnings 536131910. Growth capex / owner earnings = 0.08315789754055117.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2017: growth capex 0; upkeep 51868078.7; owner earnings 820332408.3. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2018: growth capex 13774408.200000003; upkeep 60461196; owner earnings 1142932920. Growth capex / owner earnings = 0.012051808079865268.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2019: growth capex 9550857.14; upkeep 55885142; owner earnings 1374376829. Growth capex / owner earnings = 0.006949227415998586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2020: growth capex 48892793.91112125; upkeep 370118218.01887876; owner earnings 1391611600.9811213. Growth capex / owner earnings = 0.035133936708094844.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2021: growth capex 0; upkeep 92166857.84; owner earnings 2428651940.136. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2022: growth capex 31254299.5706999; upkeep 144119383.2993001; owner earnings 2353828238.8387. Growth capex / owner earnings = 0.013278071464602586.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2023: growth capex 72315070.5990128; upkeep 69557644.4009872; owner earnings 2774156502.643013. Growth capex / owner earnings = 0.026067408428513787.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2024: growth capex 52770672.09372592; upkeep 1015522480.9062741; owner earnings 1985569443.3477259. Growth capex / owner earnings = 0.02657709720026366.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2025: growth capex 0; upkeep 339796706.66; owner earnings 1913899427.7940001. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); Dividend observations: [[2016,166513045.41],[2017,197116264.7],[2018,284234062.35],[2019,361571128],[2020,494720112],[2021,542985489],[2022,730013824],[2023,784638253],[2024,2127271717],[2025,1967721584.06]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); FY2025: cash repurchases 172626613.675 CNY.

### Are managers owners

Insiders own 62.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600436.SHG SharesStats.PercentInsiders = 62.638000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.8% yearly over ten years; actual growth was 15.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.521Z); Ten-year compound average after fade. Initial solved rate 0.1719764396242603. Price 120.89; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7721050317055339 → FY2025 3.174119825246732. Closing-price date 2026-10-15.

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

- 2016-10: CNY 48.08 per share

- 2016-11: CNY 47.84 per share

- 2016-12: CNY 45.79 per share

- 2017-01: CNY 45.24 per share

- 2017-02: CNY 48.03 per share

- 2017-03: CNY 50.29 per share

- 2017-04: CNY 55.18 per share

- 2017-05: CNY 53.46 per share

- 2017-06: CNY 61.04 per share

- 2017-07: CNY 56.51 per share

- 2017-08: CNY 54.69 per share

- 2017-09: CNY 58.26 per share

- 2017-10: CNY 67.75 per share

- 2017-11: CNY 61.54 per share

- 2017-12: CNY 63.20 per share

- 2018-01: CNY 73.29 per share

- 2018-02: CNY 72.88 per share

- 2018-03: CNY 82.98 per share

- 2018-04: CNY 93.46 per share

- 2018-05: CNY 111.35 per share

- 2018-06: CNY 111.93 per share

- 2018-07: CNY 115.15 per share

- 2018-08: CNY 102.88 per share

- 2018-09: CNY 101.26 per share

- 2018-10: CNY 77.50 per share

- 2018-11: CNY 81.30 per share

- 2018-12: CNY 86.65 per share

- 2019-01: CNY 88.38 per share

- 2019-02: CNY 105.93 per share

- 2019-03: CNY 114.90 per share

- 2019-04: CNY 109.19 per share

- 2019-05: CNY 107.50 per share

- 2019-06: CNY 115.20 per share

- 2019-07: CNY 104.00 per share

- 2019-08: CNY 99.71 per share

- 2019-09: CNY 101.88 per share

- 2019-10: CNY 108.52 per share

- 2019-11: CNY 99.78 per share

- 2019-12: CNY 109.87 per share

- 2020-01: CNY 128.79 per share

- 2020-02: CNY 120.10 per share

- 2020-03: CNY 124.30 per share

- 2020-04: CNY 140.25 per share

- 2020-05: CNY 146.72 per share

- 2020-06: CNY 170.25 per share

- 2020-07: CNY 204.20 per share

- 2020-08: CNY 251.86 per share

- 2020-09: CNY 243.32 per share

- 2020-10: CNY 229.30 per share

- 2020-11: CNY 209.02 per share

- 2020-12: CNY 267.51 per share

- 2021-01: CNY 298.55 per share

- 2021-02: CNY 297.49 per share

- 2021-03: CNY 286.96 per share

- 2021-04: CNY 339.31 per share

- 2021-05: CNY 383.90 per share

- 2021-06: CNY 448.30 per share

- 2021-07: CNY 366.00 per share

- 2021-08: CNY 347.05 per share

- 2021-09: CNY 378.20 per share

- 2021-10: CNY 412.92 per share

- 2021-11: CNY 447.00 per share

- 2021-12: CNY 437.15 per share

- 2022-01: CNY 357.24 per share

- 2022-02: CNY 361.31 per share

- 2022-03: CNY 317.23 per share

- 2022-04: CNY 306.15 per share

- 2022-05: CNY 309.70 per share

- 2022-06: CNY 356.73 per share

- 2022-07: CNY 295.72 per share

- 2022-08: CNY 300.99 per share

- 2022-09: CNY 266.80 per share

- 2022-10: CNY 228.00 per share

- 2022-11: CNY 254.95 per share

- 2022-12: CNY 288.46 per share

- 2023-01: CNY 310.80 per share

- 2023-02: CNY 308.73 per share

- 2023-03: CNY 284.38 per share

- 2023-04: CNY 271.93 per share

- 2023-05: CNY 304.20 per share

- 2023-06: CNY 286.36 per share

- 2023-07: CNY 289.97 per share

- 2023-08: CNY 276.34 per share

- 2023-09: CNY 275.21 per share

- 2023-10: CNY 250.20 per share

- 2023-11: CNY 252.76 per share

- 2023-12: CNY 241.99 per share

- 2024-01: CNY 199.40 per share

- 2024-02: CNY 223.00 per share

- 2024-03: CNY 228.52 per share

- 2024-04: CNY 237.24 per share

- 2024-05: CNY 227.00 per share

- 2024-06: CNY 207.17 per share

- 2024-07: CNY 212.75 per share

- 2024-08: CNY 208.59 per share

- 2024-09: CNY 258.49 per share

- 2024-10: CNY 234.35 per share

- 2024-11: CNY 233.11 per share

- 2024-12: CNY 214.50 per share

- 2025-01: CNY 202.51 per share

- 2025-02: CNY 204.53 per share

- 2025-03: CNY 202.25 per share

- 2025-04: CNY 205.33 per share

- 2025-05: CNY 204.05 per share

- 2025-06: CNY 200.01 per share

- 2025-07: CNY 198.99 per share

- 2025-08: CNY 209.22 per share

- 2025-09: CNY 196.79 per share

- 2025-10: CNY 178.13 per share

- 2025-11: CNY 171.87 per share

- 2025-12: CNY 168.78 per share

- 2026-01: CNY 160.40 per share

- 2026-02: CNY 163.24 per share

- 2026-03: CNY 151.10 per share

- 2026-04: CNY 143.55 per share

- 2026-05: CNY 128.41 per share

- 2026-06: CNY 109.28 per share

- 2026-07: CNY 139.44 per share

- 2026-08: CNY 122.13 per share

- 2026-09: CNY 118.00 per share

- 2026-10: CNY 119.84 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 15.57 per share, central CNY 21.07 per share, high CNY 24.27 per share

- FY2017: low CNY 25.49 per share, central CNY 35.63 per share, high CNY 41.29 per share

- FY2018: low CNY 31.89 per share, central CNY 44.48 per share, high CNY 51.50 per share

- FY2019: low CNY 37.74 per share, central CNY 50.98 per share, high CNY 58.68 per share

- FY2020: low CNY 44.77 per share, central CNY 61.48 per share, high CNY 70.80 per share

- FY2021: low CNY 57.68 per share, central CNY 78.88 per share, high CNY 90.70 per share

- FY2022: low CNY 54.13 per share, central CNY 77.20 per share, high CNY 90.07 per share

- FY2023: low CNY 82.13 per share, central CNY 112.22 per share, high CNY 129.01 per share

- FY2024: low CNY 78.17 per share, central CNY 110.39 per share, high CNY 128.36 per share

- FY2025: low CNY 56.59 per share, central CNY 79.86 per share, high CNY 93.49 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 2026-10-15T06:41:27.622Z 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.