[ET Net News Agency, 9 October 2020] J.P. Morgan lowered its target price for China
Resources Pharmaceutical Group (03320) to HK$4.5 from HK$5 and maintained its "neutral"
rating.
The research house sees CR Pharma's recently announced RMB5.36bn acquisition of a
controlling stake in Boya Bio-Pharmaceutical Group allow it to penetrate the blood product
industry - characterized by rapid growth, strong profitability, and high barriers to
entry.
But JPM added that ongoing headwinds from the centralized procurement (CP), extended
disruptions from COVID-19, and ongoing channel destocking of Dong-E-E-Jiao (DEEJ) could
cap upside to the stock.
It said the target price reduction reflects the uncertainties related to (1) integration
of Boya, (2) ongoing price cuts, (3) DEEJ destocking, (4) extended impact from COVID-19,
and (5) worsening of working capital. (KL)
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03320 CHINARES PHARMA
Nominal 
5.040 +0.080 (+1.613%) Research Report
09/10/2020 11:16
{I-bank focus}JP Morgan lowers CR Pharma (03320) to HK$4.5
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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