[ET Net News Agency, 27 August 2019] Citi Research lowered its target price for
Sinopharm Group (01099) to HK$38 from HK$47 and maintained its "buy" rating.
The research house said Sinopharm's GM slightly dropped 18bps to 8.7% mainly impacted by
fast-growing proprietary pharmacies with lower margin. Operating cash flow (OCF) recorded
Rmb11bn outflow due to extended hospital payment collection. Management was confident in
achieving positive full-year OCF in 2019.
Citi adjusted the revenue, financial cost and MI (minority interest) percentage upward
in 2019/20/21 to reflect the latest business trend. (KL)