[ET Net News Agency, 1 December 2020] Nomura lowered its target price for Sino
Biopharmaceutical (01177) to HK$8.97 from HK$11.6 and maintained its "buy" rating.
The research house said Sino Biopharm reported weak 3Q results, due to the lingering
impact of the pandemic, implementation of GPO (group purchasing organization) on old
blockbuster products and expenses on revamping the sales system.
Continued sales ramp-up of new generics and recovery of hospital market are likely to
lead to a rebound of sales in 1H 2021, Nomura said. Assuming the sales restructuring is
completed in 2021, it expects Sino Biopharm's revenue to record a 27% CAGR over 2021-23.
It expects underlying profit to grow at 23% annually over the period, slightly lower than
topline growth, considering rising R&D input. (KL)