[ET Net News Agency, 17 August 2018] Morgan Stanley raised its target price for China
Traditional Chinese Medicine (CTCM)(00570) to HK$7 from HK$6.9, and maintained its
"equal-weight" rating on policy uncertainties.
The research house said both of CTCM's 1H revenue and net profit growth of 40.1% and
25.9% were ahead of its estimates. Morgan lifted its capex projection to account for
expansion of the formula granule and decoction piece businesses.
It also raised its 2018-20 net profit estimates by 6.1%, 9.5%, and 13.1%.
Morgan is cautious about: (1) whether the goal to reach Rmb20bn in sales in five years
is achievable; and (2) whether favorable policies that exclude sales of formula granules
from zero-markup policy and drug sales/total hospital revenue calculation (<30%) are
sustainable. (KL)
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00570 TRAD CHI MED
Nominal 
4.300 -0.020 (-0.463%) Others
17/08/2018 17:50
[I-bank focus]Morgan raises Trad Chinese Med (00570) to HK$7
| Remark: | Real time quote last updated: 26/04/2024 13:59 |
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