[ET Net News Agency, 17 January 2020] Jefferies Research trimmed its target price for
Sino Biopharmaceutical (01177) to HK$10 from HK$13 and maintained its "buy" rating.
The research house has little doubt that Sino Biopharm has one of the best R&D platforms
and pipelines in China. The continuous launch of new products should be able to propel the
growth of the company.
However, in 2020 the nationwide implementation of centralized procurement may hurt the
growth of core products. Though management remains optimistic, Jefferies would rather err
on the side of caution and wait for clearer signals, especially given its high valuation.
Jefferies expects total revenue growth to drop to 5.1% in 2020, due mainly to the impact
of centralized procurement. Core net profit will only grow by 8.4% as a result. (KL)