[ET Net News Agency, 31 March 2020] Credit Suisse lowered its target price for
Sinopharm Group (01099) to HK$25.2 from HK$26.08 and maintained its "outperform" rating.
The research house said Sinopharm's FY2019 revenue beat due to better-than-expected
revenue growth in distribution and device segments. But its net profit was just in line,
partially due to higher-than-expected finance costs.
Credit Suisse increased its FY2020/21 revenue estimates by 4.3%/3.7% due to
better-than-expected segment results. Management continues to see recovery in business
segments and expects the impact to be limited to 1H. (KL)