601607 (Shanghai Pharmaceuticals Holding Co Ltd) vs Shanghai Composite Comparison

601607

Shanghai Composite

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601607

Shanghai Composite

Difference

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601607

Shanghai Composite

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Composite

601607

MCK

COR

0HF3

CAH

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Shanghai Pharmaceuticals Holding Co Ltd
Glance View

Market Cap

57.1B CNY

Industry

Health Care

Shanghai Pharmaceuticals Holding Co Ltd, a giant in China's pharmaceutical industry, operates with a dual-engine strategy that seamlessly combines manufacturing and distribution. Established in the bustling metropolis of Shanghai, the company has swiftly become a cornerstone of China's healthcare landscape. Its manufacturing arm is a powerhouse of innovation and production, turning out a vast array of pharmaceutical products that encompass both traditional Chinese medicine and modern pharmaceuticals. These products range from patented medicines to essential generics, entering hospitals, clinics, and retail pharmacies nationwide, all the while feeding a robust supply chain that caters to the country's vast and diverse market needs. On the flip side, Shanghai Pharmaceuticals' extensive distribution network is the lifeline that ensures these vital medicines reach their destinations safely and efficiently. In an era where logistics and supply chain management are pivotal, the company excels through an advanced distribution system that connects manufacturers with end-users across China. This network is bolstered by strategic partnerships and a commitment to technological advancement, allowing the company to maintain agility and reliability in an ever-evolving market. Revenue streams flow not just from product sales but are heavily supplemented through strategic partnerships and services that enhance accessibility and affordability for healthcare providers and patients alike. As one of the top pharmaceutical firms in China, Shanghai Pharmaceuticals is adept at maneuvering the intricacies of healthcare demands, regulatory landscapes, and competitive dynamics, carving its niche as a leader in both innovation and distribution efficiency.

View Shanghai Pharmaceuticals Holding Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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US		Mckesson Corp NYSE:MCK	Select
US		Cencora Inc NYSE:COR	Select
US	A	Amerisourcebergen Corp LSE:0HF3	Select
US		Cardinal Health Inc NYSE:CAH	Select
US		Henry Schein Inc NASDAQ:HSIC	Select
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Select
CN		Sinopharm Group Co Ltd HKEX:1099	Select
CN		Huadong Medicine Co Ltd SZSE:000963	Select
IT		Amplifon SpA MIL:AMP	Select
DE	M	McKesson Europe AG XHAM:CLS1	Select

US		Mckesson Corp NYSE:MCK	Add
US		Cencora Inc NYSE:COR	Add
US	A	Amerisourcebergen Corp LSE:0HF3	Add
US		Cardinal Health Inc NYSE:CAH	Add
US		Henry Schein Inc NASDAQ:HSIC	Add
KR		Celltrion Healthcare Co Ltd KOSDAQ:091990	Add
CN		Sinopharm Group Co Ltd HKEX:1099	Add
CN		Huadong Medicine Co Ltd SZSE:000963	Add
IT		Amplifon SpA MIL:AMP	Add
DE	M	McKesson Europe AG XHAM:CLS1	Add

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601607

vs

Shanghai Composite

Stocks Performance
601607 vs Shanghai Composite

Performance Gap
601607 vs Shanghai Composite

Performance By Year
601607 vs Shanghai Composite

Competitors Performance
Shanghai Pharmaceuticals Holding Co Ltd vs Peers

Shanghai Pharmaceuticals Holding Co Ltd
Glance View

Company

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601607 vs Shanghai Composite

Stocks Performance 601607 vs Shanghai Composite

Performance Gap 601607 vs Shanghai Composite

Performance By Year 601607 vs Shanghai Composite

Competitors Performance Shanghai Pharmaceuticals Holding Co Ltd vs Peers

Shanghai Pharmaceuticals Holding Co Ltd Glance View

Company

Help

Tools

Stocks

601607

vs

Shanghai Composite

Stocks Performance
601607 vs Shanghai Composite

Performance Gap
601607 vs Shanghai Composite

Performance By Year
601607 vs Shanghai Composite

Competitors Performance
Shanghai Pharmaceuticals Holding Co Ltd vs Peers

Shanghai Pharmaceuticals Holding Co Ltd
Glance View