[ET Net News Agency, 6 April 2018] HSBC Global Research lifted its target price for
Shanghai Fosun Pharmaceutical (02196) to HK$58 from HK$48, and reiterated its "buy"
rating.
Despite robust top-line growth, the research house said Fosun's earnings grew 11.4% in
2017, in line with HSBC's estimate. Surging SG&A expenses and R&D costs caused the
declining margins. HSBC expects this trend to continue in 2018-19 due to the R&D in
antibodies and further consolidation of Gland Pharma.
HSBC said HLX-01 (CD20) entered the CFDA's fast track approval list in January 2018,
implying that Fosun may receive NDA approval as early as mid-2018. In addition to HLX-01,
Fosun has HLX02 (Her-2) and HLX03 in phase III clinical trials.
HSBC raised its 2018-19 revenue estimates by 21.3% and 24%, respectively, to reflect the
consolidation of Gland Pharma and the contribution of the antibody business. (KL)
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02196 FOSUN PHARMA
Nominal 
11.760 -0.060 (-0.508%) Others
06/04/2018 15:10
[I-bank focus]HSBC ups Fosun Pharmaceutical (02196) to HK$58
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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