[ET Net News Agency, 27 November 2019] Goldman Sachs lifted its target price for Sino
Biopharmaceutical (SBP)(01177) to HK$10 from HK$9.2 and maintained its "neutral" rating.
The research house said SBP's 3Q sales of Rmb6.8bn were above Goldman's estimate of
Rmb6.3bn, driven by the continued momentum of oncology drugs. Gross margin of 80.6%
slightly increased on a quarterly basis, while earnings of Rmb811mn were below Goldman's
estimates.
It sees mixed trend in SBP's topline as driven by the strong ramp-up of oncology and
launch of potential pipeline drugs, while further impacted by GPO and Rx control. Goldman
remains cautious about SBP's generic sales in 2020 as nationwide GPO could impact
Runzhong, tenofovir among other generics.
Goldman fine-tuned its 2019-2021 EPS forecasts, while revised up 2021 EPS estimates by
6.9% to account for strong sales ramp-up of anlotinib and other new drugs. (KL)