[ET Net News Agency, 12 January 2018] Credit Suisse lifted its target price for China
Medical System (CMS)(00867) to HK$22.2 from HK$18.8, and maintained its "outperform"
rating.
The research house said CMS continues to deliver solid growth, driven by its clinical
efficacy drug portfolio, strong sales and marketing team, and new NDRL inclusion of
XinHuoSu. Now the direct network covers about 44,000 healthcare institutions and agency
network covers around 7,900.
Credit Suisse said CMS's solid sales and net profit growth in 1H 2017 have shown that
the company is immune to the "two-invoice" policy, refuting some market noises. It sees
solid growth for all direct-promotion drugs, with Plendil delivering 11% sales growth in
2018, and Deanxit/Ursofalk/Xinhuosu/Bioflor delivering 10%/15%/25%/30%. (KL)