[ET Net News Agency, 4 September 2018] HSBC Global Research raised its target price for
China Resources Pharmaceutical (CRP)(03320) to HK$14.7 from HK$12.1, and maintained its
"buy" rating.
The research house said CRP beat on both top and bottom line. Gross margin improved by
2.9 points to 18% due to optimizing product mix and increasing share of direct drug
distribution.
Given most major provinces have executed the two-invoice system by August and the rest
of provinces are near to execute by the end of 2018, HSBC expects CRP's financial
indicators to gradually stabilize in 2H 2018-2019. (KL)