Jiangsu Hengrui Medicine Co.

600276.SS

Drug Manufacturers - Specialty & Generic · Healthcare

Exchange

SHH

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Strong

Growth

Good

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Winston Score History

The full picture

Jiangsu Hengrui Medicine is one of China's largest pharmaceutical companies. It discovers, makes, and sells prescription drugs — including cancer treatments, anesthetics, and contrast agents used in medical imaging. Its main customers are hospitals and clinics across China, and it is widely considered the leading domestic innovator in oncology drugs.

Hengrui earns most of its revenue by selling branded prescription medicines directly to hospitals, with a growing share coming from newer patented drugs rather than cheaper generics. The company operates primarily in China but has been expanding into international markets, including filing drug approvals in the United States and Europe. Its competitive edge comes from one of the largest R&D pipelines among Chinese drugmakers, with dozens of drugs in clinical trials. The key growth driver is successfully getting its innovative drugs approved abroad, but the main risk is China's national drug pricing program, which regularly forces steep price cuts on medicines once they become widely used.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-17.5% YoY

YoY Growth Rate

Earnings declining

Insider Activity

40.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$42.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Jiangsu Hengrui Medicine Co.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

84.2%

Premium pricing power — 84.2% gross margin

Profit after running costs

Operating Margin

21.8%

Excellent — 21.8% operating margin

Return on the money invested

ROCE

11.5%

Below par — 11.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.9%

Slow sales growth (+3.9% YoY)

Profit growth

EPS YoY

+1.7%

Flat earnings

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

116%

Turns 116% of profit into real cash

Spare cash per sale

FCF Margin

18.2%

Converts sales into free cash efficiently (18.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.01

Conservative — low debt load (0.01)

Covers its interest

Interest Cover

1317.81x

Comfortably covers interest (1317.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

41.9x

no trend

Pricey — P/E 41.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+16.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (41.9 → 25.5)

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Dividends

Dividend

Dividend Yield

0.38%

no trend

Small dividend — 0.38% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-2.1%

no trend

Dividend cut (-2.1% YoY) — warning sign

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