Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01099 SINOPHARM
RTNominal down20.050 -0.350 (-1.716%)
Others

21/01/2020 17:00

{I-bank focus}Citi cuts Sinopharm Group (01099) to HK$33

[ET Net News Agency, 21 January 2020] Citi Research cut its target price for Sinopharm
Group (01099) to HK$33 from HK$38 and maintained its "buy" rating.
The research house said the sector's consolidation trend is becoming more explicit post
the implementation of centralized procurement (GPO), and the top four players delivered
+15% revenue growth (higher than the industry average of +11%) during 1Q-3Q 2019.
With the GPO of drugs rolling out to more Chinese cities/provinces, distributors could
be impacted temporarily by price cuts and lower GM on a revenue mix change (innovative
drugs give distributors lower GM than generics).
From Sinopharm's perspective, the 4+7 GPO drugs distributed by it delivered nearly +200%
sales growth with +800% volume expansion. In Shanghai particularly, Sinopharm secured 13
drugs' distribution rights (out of 25).
Citi believes Sinopharm is more defensive than other competitors because (1) its newly
acquired medical device distribution business is growing fast and with a higher GM, (2)
its proactive drug out-licensing business has a higher GM, and (3) it has M&A potential.
(KL)

Remark: Real time quote last updated: 28/03/2024 18:00
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.