# Shanghai Pharmaceuticals Holding (601607.SHG)

Canonical: https://gigainvestors.com/s/601607.SHG

Analysis as of: 2026-10-16T07:36:04.525Z. 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 16.76 per share; close as of 2026-10-15.

Estimated value: low CNY 26.34 per share, central CNY 31.86 per share, high CNY 35.77 per share. Buy at or below the central value CNY 31.86 per share. Valuation as of 2026-10-16T07:36:04.525Z; scenarios are not confidence intervals.

Expected annual return: 22.9% at the stated quote. About 22.9% 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: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.04×

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 11.6%

- ROIC, second-lowest year: 9.5%

- Typical minus recent gross margin: 2.2 pp

- Typical gross margin (annual median): 12.9%

- Recent gross margin (lower of latest and 3-year median): 10.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 6.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.8%

- FY2017: 13.9%

- FY2018: 10.7%

- FY2019: 10.1%

- FY2020: 12.9%

- FY2021: 13.3%

- FY2022: 12.5%

- FY2023: 9.5%

- FY2024: 9.3%

- FY2025: 9.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.93×

- Cash conversion uses consolidated totals: No

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

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

- Return on incremental invested capital: 5.9%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 6.1 pp

- Working capital / revenue, final three-year average: 26.6%

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

- FY2021: 0.75×

- FY2022: 0.96×

- FY2023: 0.94×

- FY2024: 0.95×

- FY2025: 1.04×

### management: fail

- 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: 13.8% vs 9.5%

- Per-share earnings: 1.19 to 1.23 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.3%

- Ordinary dilution, 5-year annual growth: 5.6%

- Market cap gain: CNY 14B

- Cumulative retained earnings: CNY 27B

- Diluted shares, 10-year annual growth: 3.3%

- Diluted shares, 5-year annual growth: 5.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.4%

- Per-share value change: CNY 0.04

- Per-share value, starting three-year median: CNY 1.19

- Per-share value, ending three-year median: CNY 1.23

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 16B

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: 13.8%

- ROIC, last three-year median: 9.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.19

- FY2017: CNY 1.31

- FY2018: CNY 1.37

- FY2019: CNY 1.44

- FY2020: CNY 1.59

- FY2021: CNY 1.79

- FY2022: CNY 1.61

- FY2023: CNY 1.02

- FY2024: CNY 1.23

- FY2025: CNY 1.54

### accounting: pass

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.5%

- FY2017: 0.9%

- FY2018: 0.6%

- FY2019: -1.4%

- FY2020: -1.6%

- FY2021: 0.0%

- FY2022: 0.4%

- FY2023: -0.7%

- FY2024: -0.6%

- FY2025: -0.2%

## Holders

## Price story

Down 32% since Mar 2022 · sales +3%

Story as of 2026-10-16T10:00:06.697Z; price observation 2026-10-15.

Price needs cash profits to shrink 9.1% a year for ten years

### Sales · FY2024–2025

sales +3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 121B 

- FY2017: CNY 131B 

- FY2018: CNY 159B 

- FY2019: CNY 187B 

- FY2020: CNY 192B 

- FY2021: CNY 216B 

- FY2022: CNY 232B 

- FY2023: CNY 260B 

- FY2024: CNY 275B 

- FY2025: CNY 284B 

### Gross margin · FY2025

gross margin 10.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 11.7% 

- FY2017: 12.7% 

- FY2018: 13.9% 

- FY2019: 14.2% 

- FY2020: 13.7% 

- FY2021: 13.2% 

- FY2022: 13.1% 

- FY2023: 11.9% 

- FY2024: 11.0% 

- FY2025: 10.7% 

## Owner memo

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

### How it makes money

Operates in medical distribution; annual sales are CNY 283.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2025: revenue 283579600562.98; grossProfit 30416479664.06; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601607.SHG: Shanghai Pharmaceuticals Holding Co., Ltd. engages in the research, development, manufacture, and sale of pharmaceutical and healthcare products in China and internationally. The company operates through four segments: Production, Distribution, Retail, and Others. It offers chemical and biological drugs, Chinese medicine, health care products, and medical devices to treat immunology, psychiatric and neurological, tumor, cardiovascular, digestive metabolism, psychoneurotic, neoplasm, respiratory system, and anti-infection diseases, as well as invests in equity. The company also engages in the provision of pharmaceutical distribution, warehousing, logistics, and other value-added pharmaceutical supply chain solutions and related services to pharmaceutical manufacturers and dispensers, such as hospitals, distributors, and retail pharmacies. In addition, it engages in the operation of a network of retail pharmacy stores. Shanghai Pharmaceuticals Holding Co., Ltd. was incorporated in 1994 and is headquartered in Shanghai, China.

### Why customers stay

Margins ranged from 10.7% to 11.9% during 2023–25; it earns 11.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2023: grossProfit / revenue = 11.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2024: grossProfit / revenue = 11%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2025: grossProfit / revenue = 10.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); 10-year return on capital observations [[2016,0.1377481160376984],[2017,0.1389048186033502],[2018,0.10690029339211166],[2019,0.10126692184170202],[2020,0.12899135182055452],[2021,0.13332455597014026],[2022,0.12494021918047382],[2023,0.09460422069788098],[2024,0.09318015504814339],[2025,0.09469404142111935]]; median 0.11592025628629274. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 13% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); Gross margin observations: [[2021,0.13162504127953475],[2022,0.13094630041300742],[2023,0.11882466979620963]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2016: growth capex 873334220.0504205; upkeep 1245951034.0295794; owner earnings 2629546462.970421. Growth capex / owner earnings = 0.33212351724862615.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2017: growth capex 585258538.573875; upkeep 1422012998.756125; owner earnings 2875913001.243875. Growth capex / owner earnings = 0.20350356158922123.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2018: growth capex 773582164.06; upkeep 1169462000; owner earnings 3881063000. Growth capex / owner earnings = 0.19932223827853346.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2019: growth capex 1422873441.0700002; upkeep 1330252000; owner earnings 4080994000. Growth capex / owner earnings = 0.3486585476651032.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2020: growth capex 349568832.88750076; upkeep 2660402483.0324993; owner earnings 3332312516.9675007. Growth capex / owner earnings = 0.10490277580735986.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2021: growth capex 1645777463.3493943; upkeep 2472994027.3406057; owner earnings 3840378142.871394. Growth capex / owner earnings = 0.4285456801706695.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2022: growth capex 1122693156.8039482; upkeep 1562170621.3560517; owner earnings 5378824554.918036. Growth capex / owner earnings = 0.20872462846504872.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2023: growth capex 1470170219.58; upkeep 1500440000; owner earnings 3541904597.6331515. Growth capex / owner earnings = 0.4150790003102932.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2024: growth capex 878703000; upkeep 1522172000; owner earnings 4335946044.699482. Growth capex / owner earnings = 0.2026554276601709.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); FY2025: growth capex 0; upkeep 2325878841.63; owner earnings 5976047042.185343. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); Dividend observations: [[2016,1443529560],[2017,1750203772],[2018,2357762635.34],[2019,1165256622],[2020,1250519301],[2021,1364202874],[2022,1552494013],[2023,3981205475.75],[2024,3603676000],[2025,2799950877.2]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 65% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601607.SHG SharesStats.PercentInsiders = 64.968 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 9.1% yearly over ten years; actual growth was 5.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:04.525Z); Ten-year compound average after fade. Initial solved rate -0.13942147641733554. Price 16.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9784275530756925 → FY2025 1.607654815636834. Closing-price date 2026-10-15.

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

- 2016-10: CNY 19.81 per share

- 2016-11: CNY 20.28 per share

- 2016-12: CNY 19.56 per share

- 2017-01: CNY 21.91 per share

- 2017-02: CNY 21.68 per share

- 2017-03: CNY 23.31 per share

- 2017-04: CNY 23.74 per share

- 2017-05: CNY 25.57 per share

- 2017-06: CNY 28.88 per share

- 2017-07: CNY 24.96 per share

- 2017-08: CNY 23.30 per share

- 2017-09: CNY 23.74 per share

- 2017-10: CNY 25.00 per share

- 2017-11: CNY 24.18 per share

- 2017-12: CNY 24.19 per share

- 2018-01: CNY 23.87 per share

- 2018-02: CNY 22.24 per share

- 2018-03: CNY 24.66 per share

- 2018-04: CNY 23.37 per share

- 2018-05: CNY 26.49 per share

- 2018-06: CNY 23.90 per share

- 2018-07: CNY 23.13 per share

- 2018-08: CNY 21.27 per share

- 2018-09: CNY 20.50 per share

- 2018-10: CNY 19.80 per share

- 2018-11: CNY 20.24 per share

- 2018-12: CNY 17.00 per share

- 2019-01: CNY 16.10 per share

- 2019-02: CNY 18.42 per share

- 2019-03: CNY 20.68 per share

- 2019-04: CNY 19.20 per share

- 2019-05: CNY 18.40 per share

- 2019-06: CNY 18.15 per share

- 2019-07: CNY 18.16 per share

- 2019-08: CNY 18.84 per share

- 2019-09: CNY 18.20 per share

- 2019-10: CNY 18.55 per share

- 2019-11: CNY 17.79 per share

- 2019-12: CNY 18.37 per share

- 2020-01: CNY 18.91 per share

- 2020-02: CNY 18.67 per share

- 2020-03: CNY 19.51 per share

- 2020-04: CNY 18.50 per share

- 2020-05: CNY 17.80 per share

- 2020-06: CNY 18.38 per share

- 2020-07: CNY 20.50 per share

- 2020-08: CNY 22.20 per share

- 2020-09: CNY 20.31 per share

- 2020-10: CNY 19.92 per share

- 2020-11: CNY 20.11 per share

- 2020-12: CNY 19.20 per share

- 2021-01: CNY 18.06 per share

- 2021-02: CNY 20.47 per share

- 2021-03: CNY 19.61 per share

- 2021-04: CNY 22.38 per share

- 2021-05: CNY 23.24 per share

- 2021-06: CNY 21.13 per share

- 2021-07: CNY 19.03 per share

- 2021-08: CNY 19.20 per share

- 2021-09: CNY 19.13 per share

- 2021-10: CNY 18.65 per share

- 2021-11: CNY 18.40 per share

- 2021-12: CNY 19.87 per share

- 2022-01: CNY 18.88 per share

- 2022-02: CNY 18.68 per share

- 2022-03: CNY 24.51 per share

- 2022-04: CNY 17.59 per share

- 2022-05: CNY 18.00 per share

- 2022-06: CNY 18.08 per share

- 2022-07: CNY 17.18 per share

- 2022-08: CNY 17.28 per share

- 2022-09: CNY 16.51 per share

- 2022-10: CNY 17.58 per share

- 2022-11: CNY 19.35 per share

- 2022-12: CNY 17.83 per share

- 2023-01: CNY 18.68 per share

- 2023-02: CNY 19.76 per share

- 2023-03: CNY 20.37 per share

- 2023-04: CNY 22.91 per share

- 2023-05: CNY 23.45 per share

- 2023-06: CNY 22.41 per share

- 2023-07: CNY 20.11 per share

- 2023-08: CNY 17.88 per share

- 2023-09: CNY 18.08 per share

- 2023-10: CNY 18.03 per share

- 2023-11: CNY 17.96 per share

- 2023-12: CNY 16.73 per share

- 2024-01: CNY 16.95 per share

- 2024-02: CNY 18.13 per share

- 2024-03: CNY 16.93 per share

- 2024-04: CNY 17.92 per share

- 2024-05: CNY 18.16 per share

- 2024-06: CNY 19.11 per share

- 2024-07: CNY 19.40 per share

- 2024-08: CNY 18.60 per share

- 2024-09: CNY 21.15 per share

- 2024-10: CNY 19.35 per share

- 2024-11: CNY 21.75 per share

- 2024-12: CNY 21.00 per share

- 2025-01: CNY 20.15 per share

- 2025-02: CNY 19.20 per share

- 2025-03: CNY 18.55 per share

- 2025-04: CNY 17.96 per share

- 2025-05: CNY 18.42 per share

- 2025-06: CNY 17.88 per share

- 2025-07: CNY 19.04 per share

- 2025-08: CNY 18.67 per share

- 2025-09: CNY 17.95 per share

- 2025-10: CNY 17.94 per share

- 2025-11: CNY 17.81 per share

- 2025-12: CNY 17.86 per share

- 2026-01: CNY 17.30 per share

- 2026-02: CNY 17.20 per share

- 2026-03: CNY 17.05 per share

- 2026-04: CNY 17.09 per share

- 2026-05: CNY 16.48 per share

- 2026-06: CNY 15.40 per share

- 2026-07: CNY 16.86 per share

- 2026-08: CNY 16.25 per share

- 2026-09: CNY 16.22 per share

- 2026-10: CNY 16.70 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 20.67 per share, central CNY 27.99 per share, high CNY 32.26 per share

- FY2017: low CNY 19.87 per share, central CNY 24.83 per share, high CNY 28.28 per share

- FY2018: low CNY 23.16 per share, central CNY 29.32 per share, high CNY 33.41 per share

- FY2019: low CNY 23.60 per share, central CNY 30.01 per share, high CNY 34.29 per share

- FY2020: low CNY 25.41 per share, central CNY 31.72 per share, high CNY 36.02 per share

- FY2021: low CNY 27.50 per share, central CNY 34.58 per share, high CNY 39.40 per share

- FY2022: low CNY 26.84 per share, central CNY 34.59 per share, high CNY 39.31 per share

- FY2023: low CNY 21.29 per share, central CNY 24.00 per share, high CNY 26.79 per share

- FY2024: low CNY 23.04 per share, central CNY 26.09 per share, high CNY 29.04 per share

- FY2025: low CNY 25.31 per share, central CNY 30.70 per share, high CNY 34.52 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 2026-10-15T06:41:47.642Z 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.