---
title: "Sinopharm subsidiary posts steady Q1 profit growth but cash flow weakens"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/283669573.md"
description: "Sinopharm Group's subsidiary, China National Medicines Corporation, reported a 6.63% increase in Q1 revenue to RMB 13.56 billion and a 3.32% rise in net profit to RMB 474 million. However, cash flow from operations fell to a negative RMB 3.59 billion, indicating collection pressures. Total assets decreased by 1.39% to RMB 36.18 billion, while equity rose by 2.70%. Analysts rate the stock as a Buy with a target price of HK$22.50, despite concerns over cash flow."
datetime: "2026-04-22T12:45:28.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/283669573.md)
  - [en](https://longbridge.com/en/news/283669573.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/283669573.md)
---

# Sinopharm subsidiary posts steady Q1 profit growth but cash flow weakens

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The latest update is out from Sinopharm Group Co ( (HK:1099) ).

Sinopharm Group has disclosed key unaudited first-quarter figures for its Shanghai-listed subsidiary China National Medicines Corporation, showing steady year-on-year revenue growth and modest improvement in profitability. Revenue for the three months to 31 March 2026 rose 6.63% to RMB 13.56 billion, while net profit attributable to shareholders increased 3.32% to RMB 474 million and earnings per share inched up to RMB 0.6286.

Underlying performance excluding non-recurring items also improved, yet net cash flow from operating activities deepened into a negative RMB 3.59 billion, highlighting working-capital or collection pressures despite profit growth. Total assets slipped 1.39% from year-end to RMB 36.18 billion, while equity attributable to shareholders rose 2.70%, indicating a strengthening capital base even as returns on equity edged down slightly, a mix that investors will weigh against cash flow weakness in assessing the subsidiary’s operational quality.

The most recent analyst rating on (HK:1099) stock is a Buy with a HK$22.50 price target. To see the full list of analyst forecasts on Sinopharm Group Co stock, see the HK:1099 Stock Forecast page.

**More about Sinopharm Group Co**

Sinopharm Group Co. Ltd. is a major Chinese pharmaceutical conglomerate with listed subsidiaries engaged in the manufacture, distribution and sale of medicines and related healthcare products. Through China National Medicines Corporation Ltd. (SINOPHARM CNCM), whose A shares trade in Shanghai, the group targets the domestic pharmaceutical market across hospital, retail and institutional channels.

**Average Trading Volume:** 5,621,000

**Technical Sentiment Signal:** Strong Buy

**Current Market Cap:** HK$63.79B

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