[ET Net News Agency, 19 July 2019] Credit Suisse lifted its target price for Sinopharm
Group Co (01099) to HK$35.39 from HK$33.44 and upgraded its rating to "outperform" from
"neutral" noting the stock is oversold with attractive valuation.
The research house expects very limited GPO (group purchasing organisation) impact of
the 25 drugs in 4+7 regions in 2019. Credit Suisse estimated GPO's nationwide expansion
and its second round could drag down distribution revenue by 2.4% and 2.7%, leading to
slower growth rates in 2020/21. It thinks the market has overestimated the GPO impact.
Credit Suisse expects solid incoming interim results from Sinopharm. The top-line growth
rate could reach 15%. It assumed distribution/retail pharmacy/medical device to grow at
10%/30%/40% in FY2019, above the industry average. (KL)
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01099 SINOPHARM
Nominal 
19.540 -0.180 (-0.913%) Research Report
19/07/2019 17:07
[I-bank focus]CS lifts Sinopharm (01099) to HK$35.39
| Remark: | Real time quote last updated: 16/04/2024 17:59 |
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