[ET Net News Agency, 6 April 2018] Morgan Stanley lifted its target price for 3SBio Inc
(01530) to HK$21 from HK$17, and reiterated its "overweight" rating.
The research house said 3SBio sales growth of 36% in 2H 2017 lagged Morgan's estimate
due to the two-invoice policy, but normalized net income was in line, thanks to lower
SG&A.
Morgan expects strong momentum of organic business, especially TPO (thrombopoietin) and
Yisaipu, to continue in 2018, and sees further contributions from Bydureon and CDMO
(contract development and manufacturing) business.
Management guided that it will launch five new biological products in the next five
years and 15 biological products in the next 10 years. (KL)