[ET Net News Agency, 16 November 2018] HSBC Global Research lowered its target price
for Sino Biopharmaceutical (01177) to HK$8.8 from HK$10.1 and maintained its "hold"
rating.
The research house thinks Sino Biopharm's exposure to GPO (group purchasing
organisation) risks is high in the short to medium term because most of the drugs that
make major contributions to revenue are facing intense competition in the bio-equivalence
(BE) test process. In addition, after Anlotinib was launched in 2Q 2018, the company lacks
another blockbuster in near term.
HSBC believes the proportion of its generic business will remain high in the next three
years, making the company more vulnerable to the GPO model. It raised its revenue
estimates to RMB20.4bn, RMB24.5bn and RMB29.2bn in 2018-20, up 0.2%, 1.2% and 3.2%,
respectively, mainly due to better-than-expected sales from Anlotinib in 2018 and the
potential launch of four biosimilars in 2020. (KL)
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01177 SINO BIOPHARM
Nominal 
2.740 +0.060 (+2.239%) Others
16/11/2018 14:43
[I-bank focus]HSBC cuts Sino Biopharm (01177) to HK$8.8
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