[ET Net News Agency, 21 January 2021] Nomura lowered its target price for CSPC
Pharmaceutical (01093) to HK$12 from HK$19.83 and maintained its "buy" rating.
The research house forecast CSPC to record CNY25.7bn revenue and CNY21.3bn
pharmaceutical sales in FY2020, implying 21% group topline growth and 23% drug sales
growth in 4Q. It projected CSPC's net profit to increase by 19.7%.
Nomura anticipated oncology products could be CSPC's major growth driver in 2021-22,
especially when considering a 52% potential price cut of NBP in the 2020 NRDL (National
Reimbursement Drug List) negotiation and its patent expiry in 2022-23.
Nomura cut its 2020-22 sales by 6%/13%/21% to factor in the COVID-19 pandemic and NBP's
patent expiry, resulting in net profits cut by 2%/9%/15%. (KL)