Jiangsu Hengrui Medicine Co.

600276.SS

Drug Manufacturers - Specialty & Generic · Healthcare

Price

$54.62

+2.51 (+4.82%)

Market Cap

$348.42B

Exchange

SHH

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 9, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+2.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 6.38B (2021) → 6.51B (2025)

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.

Winston Score History

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

+13.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+16.7% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$6.7B/ year

→ Flat (+1% vs prior year)

21.2% of revenue

In line with sector average (18%)

Steady R&D investment year-over-year

Insider Activity

40.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$42.8B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

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

Growth + cash flow

Jiangsu Hengrui Medicine Co. is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

Gross Margin

86.6%

Premium pricing power — 86.6% gross margin

Operating Margin

30.7%

Excellent — 30.7% operating margin

ROCE

3.9%

Weak — 3.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+11.5%

Steady sales growth (+11.5% YoY)

EPS YoY

+15.7%

Earnings growing fast (+15.7% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

142%

Turns 142% of profit into real cash

FCF Margin

26.2%

Converts sales into free cash efficiently (26.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

2315.17x

Comfortably covers interest (2315.2x)

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

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Valuation

P/E Ratio (TTM)

43.7x

Pricey — P/E 43.7

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

P/E vs Forward

+18.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (43.7 → 25.5)

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Dividends

Dividend Yield

0.38%

Small dividend — 0.38% yield

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

Dividend Growth

-2.1%

Dividend cut (-2.1% YoY) — warning sign

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