[ET Net News Agency, 17 January 2020] Jefferies Research lowered its target price for
3SBio Inc (01530) to HK$14.5 from HK$18.5 and maintained its "buy" rating.
The research house noted two major concerns on the company: (1) challenges to Yisaipu
from competitive products, and (2) delay in launching inetetamab. While the expectation on
Yisaipu has been lowered throughout 2019, Jefferies believes the recent correction on the
concern has been overdone. On the other hand, the company has provided a positive progress
update on inetetamab and is maintaining the launch target in 1H 2020.
Jefferies believes revenue growth started to slow down in 2019 but will pick up slowly
through 2020 and 2021 with the launch of new products. On the other hand, it expects core
net profit to grow 22% in 2020 due mainly to finance cost-saving and 14.5% in 2021. (KL)