[ET Net News Agency, 1 November 2017] Credit Suisse assumed coverage on Luye Pharma
Group (02186) with a "neutral" rating from "outperform", and a lower target price of
HK$5.87 (from HK$6.3 perviously).
The research house sees that the company lacks short-term catalysts, after Lipusu
dropped out from the NDRL negotiation and Risperidone's approval expected to be achieved
in late 2019.
The company is currently trading at 15x 2018 P/E, 20% discounted to other HK-listed
names, which Credit Suisse believes has already factored in the pressures. The research
house adjusted down its sales forecast by 3%/5%/6% and EPS by 19%/18%/16% in 2017-19,
respectively. (KL)