[ET Net News Agency, 28 March 2018] Citi Research lifted its target price for Shanghai
Pharmaceuticals (SPH)(02607) to HK$26.2 from HK$25.5, and reiterated its "buy" rating.
The research house said SPH reported in-line FY2017 results. Overall gross margin
improved by 86bps to 12.4% on sales ramp-up of high-margin key products and distribution
sales restructure under two-invoice policy.
Citi fine-turned its 2018/19 revenue and profit forecasts to reflect the consolidation
of Cardinal. It prefers SHP in distributor sector as key beneficiary of two-invoice policy
implementation and could deliver upside surprises from M&As. (KL)