Tuna Terminal

Hong Kong · HKEX · 01177

Sino Biopharmaceutical (01177) stock analysis: valuation and financials

药品及生物科技

HK$5.35 -0.9% Price as of Oct 13, 2026

Bottom line

Narrow-moat generics-to-innovation pharma: 82.4% gross margin, net cash CNY10.48B, 25.9% FCF margin, but FY2025 EPS -32.2% and net margin 7.1%; base case implies 114% upside.

Market cap
HK$100.0B
P/E
35.8x
EV/Sales
2.2x
FCF yield
10.2%
Dividend yield
2.3%
52-week range
HK$4.26 – HK$7.80

Research as of Oct 14, 2026

Business quality scorecard

0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.

How it makes money

Revenue comes from selling branded chemical and biologic drugs to Chinese hospitals, pharmacies and patients across oncology, liver disease, respiratory and surgery/pain; no segment split is disclosed, so the profit engine is the whole portfolio — FY2025 gross margin 82.1%, operating margin 21.2%.

Financials by year

FY2021Jan–Dec 2021FY2022Jan–Dec 2022FY2023Jan–Dec 2023FY2024Jan–Dec 2024FY2025Jan–Dec 2025
Revenue¥26.9B¥26.0B¥26.2B¥28.9B¥31.8B
Revenue growth+13.6%-3.1%+0.7%+10.2%+10.3%
Gross margin80.1%82.8%81.0%81.5%82.1%
Operating margin19.5%22.3%23.1%18.0%21.2%
Net income¥14.6B¥2.5B¥2.3B¥3.5B¥2.3B
Free cash flow¥3.5B¥4.7B¥4.6B¥5.2B¥7.6B
FCF margin13.0%18.1%17.5%18.1%23.8%

Amounts in CNY · What is free cash flow?

Margins Gross margin 82.1% in FY2025 versus 81.5% in FY2024, TTM 82.4%; operating margin 21.2% versus 18.0%, TTM 24.4%. Main reason: 10.3% revenue growth plus slower SG&A growth. Net margin fell to 7.4% from 12.1% on a much higher tax charge.

Balance sheet Leverage · Net cash

Cash & short-term investments
¥27.6B
Total debt
¥17.1B
Net cash
¥10.5B
Interest coverage
25.4x
Current ratio
1.6x

As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet

Management and track record

Valuation range

BearHK$5.24-2.0% vs price
BaseHK$11.47+114.4% vs price
BullHK$21.78+307.1% vs price

Implied value per share · Price when researched: HK$5.35

Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.

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