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State-owned Chinese pharma company combining drug manufacturing with one of China's largest drug distribution networks.
State-owned Chinese pharma company combining drug manufacturing with one of China's largest drug distribution networks.
Distribution brings most of the revenue but at thin margins, while manufacturing is smaller and more profitable. Sales to hospitals depend on provincial tenders and national volume-based buying programmes that cut drug prices. These are the Hong Kong-listed H shares; the same company is also listed in Shanghai.
In one line: A hybrid Chinese pharma manufacturer-distributor, akin to a combined Pfizer/McKesson unit.
Moat: narrow (scale, distribution). Large distribution network scale, though a low-margin, competitive distribution business.
Headquarters: Shanghai, China · Founded: 1994 · Employees: 49,608
Size Shanghai Pharmaceuticals (2607.HK) is a Hong Kong Health Care company (Pharmaceuticals: Major) with a market value of $8.48B, the 185th largest of 891 Hong Kong companies the cockpit tracks. Shares closed at HK$11.36 on 6 Nov 2026.
Performance Over six months the shares fell 6.7%, against +14.2% for the median peer and -13.4% for the Hong Kong market (cap-weighted) — 6th lowest of 21 in its peer set.
Growth Revenue grew 9.1% over the last twelve months (peer median +16.5%); the operating margin is 3.0% (peer median 15.0%).
Valuation It trades at 6.6× forward earnings against a peer median of 30.9× (cheapest of 14).
Price implies For today's price to make sense, revenue must grow about -10% a year for seven years (Req g). Recent delivered growth is +7%, so the hurdle is -18 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 1.6 points above its cost of capital (5.5% WACC).
Next results Next results expected around 1 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | HK$331B | HK$307B | HK$298B | HK$287B | HK$269B |
| Revenue growth | — | +3% | +4% | +7% | — |
| Gross profit | HK$36.7B | HK$30.4B | HK$30.8B | HK$32.1B | HK$33.1B |
| EBITDA | n/a | HK$12.1B | HK$12.3B | HK$11.7B | HK$11.9B |
| Net income | HK$5.89B | HK$6.21B | HK$4.94B | HK$4.16B | HK$6.53B |
| Free cash flow | HK$8.39B | HK$4.73B | HK$5.18B | HK$3.58B | HK$3.42B |
| Capital expenditure | HK$2.59B | HK$2.52B | HK$2.60B | HK$3.28B | HK$3.12B |
| Total debt | HK$69.2B | HK$73.6B | HK$68.0B | HK$64.5B | HK$56.7B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Shanghai Pharmaceuticals 2607.HK | $8.48B | -7% | +9% | 3% | 6.6× | -10.3% |
| Sinopharm 1099.HK | $6.83B | -4% | +3% | 3% | 6.3× | -8.1% |
| China Resources Pharmaceutical 3320.HK | $3.74B | -11% | +8% | 4% | 6.0× | -5.3% |
| Sbp 1177.HK | $12.7B | +4% | +15% | 30% | 18.3× | -5.4% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 2607.HK | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +4.6% | +5.9% | 10th lowest of 21 |
| 6-month return | -6.7% | +14.2% | 6th lowest of 21 |
| Distance from 52-week high | -8.5% | -16.5% | 9th highest of 21 |
| Revenue growth (TTM) | +9.1% | +16.5% | 7th lowest of 20 |
| Operating margin | 3.0% | 15.0% | 5th lowest of 19 |
| Forward P/E | 6.6× | 30.9× | cheapest of 14 |
| Growth the price implies (Req g, 7 yrs) | -10.3% | 15.0% | least demanding of 13 |
| Growth delivered (Del g) | +7.4% | +9.3% | 6th lowest of 13 |
| Hurdle (Req g minus delivered) | -17.6 pp | -2.6 pp | 3rd least demanding of 13 |
| ROIC minus cost of capital | +1.6 pp | +4.6 pp | 7th lowest of 17 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Shanghai Pharmaceuticals 2607.HK | Hong Kong | $8.48B | -7% | +9% | 3% | 6.6× | -10.3% | +7.4% |
| Protagonist Therapeutics PTGX | United States | $8.54B | +33% | +35% | 21% | 48.4× | 47.5% | +10.0% |
| Shanghai Fosun Pharmaceutical (Group) 2196.HK | Hong Kong | $8.69B | -10% | +10% | 6% | 10.4× | 20.5% | +5.8% |
| Asymchem Laboratories (Tianjin) 6821.HK | Hong Kong | $8.19B | +22% | +24% | 17% | 29.2× | n/a | n/a |
| ALK-abello A/S ALK-B.CO | Denmark | $8.14B | -5% | +17% | 27% | 35.7× | 7.6% | +12.6% |
| Kyowa Kirin 4151.T | Japan | $8.05B | +4% | +10% | 24% | 15.6× | -6.1% | +9.3% |
| H. Lundbeck A/S HLUN-A.CO | Denmark | $8.02B | +47% | +9% | 27% | n/a | -9.1% | +6.6% |
| Corcept Therapeutics CORT | United States | $7.96B | +39% | +30% | 12% | 16.4× | 24.9% | +16.6% |
| ImmunityBio IBRX | United States | $9.15B | +1% | +193% | -152% | n/a | n/a | n/a |
| TG Therapeutics TGTX | United States | $9.16B | +40% | +76% | 17% | 30.9× | 50.3% | +426.7% |
| Rhythm Pharmaceuticals RYTM | United States | $7.78B | +19% | +61% | -67% | n/a | n/a | n/a |
| Praxis Precision Medicines PRAX | United States | $7.75B | -16% | -100% | n/a | n/a | n/a | n/a |
| Madrigal Pharmaceuticals MDGL | United States | $9.28B | -22% | +93% | -11% | 79.5× | n/a | n/a |
| Glenmark Pharmaceuticals GLENMARK.NS | India | $7.73B | +9% | +33% | 20% | 32.0× | 20.0% | +9.4% |
| Alkermes Public ALKS | United States | $7.71B | +31% | +15% | 5% | n/a | 31.5% | +7.3% |
| Grifols GRF.MC | Spain | $7.49B | +23% | 0% | 16% | 13.0× | 6.8% | +7.1% |
| Cytokinetics CYTK | United States | $7.46B | -30% | -21% | -1,046% | n/a | n/a | n/a |
| Kiniksa Pharmaceuticals International KNSA | United States | $7.37B | +60% | +58% | 14% | 61.7× | 9.9% | +45.5% |
| Bachem BANB.SW | Switzerland | $7.32B | +3% | +5% | 19% | 33.1× | n/a | n/a |
| Huadong Medicine 000963.SZ | China | $7.29B | -17% | +2% | 9% | 14.0× | -2.7% | +5.3% |
| Spyre Therapeutics SYRE | United States | $9.86B | +38% | n/a | n/a | n/a | n/a | n/a |