[ET Net News Agency, 10 September 2019] Morgan Stanley lowered its target price for
Shanghai Pharmaceutical (SPH)(02607) to HK$17.1 from HK$21.5 and maintained its
"equal-weight" rating.
The research house said SPH's distribution and manufacturing segments are showing stable
growth, driven by innovative products and effective hospital promotion. Morgan is more
bullish on the top line but cut earnings estimates slightly to reflect higher expenses.
It raised overall revenue forecasts by 2.5% for 2019, 4.2% for 2020, and 3.3% for 2021.
The increases came from both distribution and manufacturing. Spending on sales and
marketing, however, rose in 1H, and Morgan raised costs a bit to reflect more product
launches ahead.
Overall, it trimmed its earnings estimates by 3.9% for 2019, 3.4% for 2020, and 0.9% for
2021. Morgan's earnings CAGR is 8.7% (2018-2021). (KL)
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02607 SH PHARMA
Nominal 
10.960 +0.180 (+1.670%) Research Report
10/09/2019 15:48
{I-bank focus}Morgan cuts Shanghai Pharma (02607) to HK$17.1
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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