[ET Net News Agency, 2 February 2021] Daiwa Research lifted its target price for CSPC
Pharmaceutical (01093) to HK$7.5 from HK$6.8 and upgraded its rating to "hold" from
"sell", reflecting the potential benefits from its A-share dual-listing.
CSPC yesterday said it would pursue a STAR board A-share dual-listing. The research
house believes the company's shares will be traded at higher valuation multiples on the
A-share, and the dual-listing will open up new financing channels to support its long-term
development.
Daiwa expects NBP revenue to peak early in 2020 at CNY7.3bn, up 30%, and decline in
2021. Despite CSPC's efforts to penetrate lower-tier markets and expand to new
indications, Daiwa does not see NBP's sales volume growth doubling from the high base in
2020 to be enough to offset the 50% price cut. (KL)