[ET Net News Agency, 3 April 2020] HSBC Qianhai Securities lowered its target price for
Sino Biopharmaceutical (SBP)(01177) to HK$13.2 from HK$13.96 and maintained its "buy"
rating.
The research house said SBP's FY2019 results with revenue and earnings up 16% and 10%
but were 7% and 9% below HSBC's estimates, due to the weak performance of group purchasing
organisation (GPO)-priced drugs.
HSBC maintained its FY2020-21 operating profit estimates largely unchanged, given the
GPO impact is already factored in. It believes the impact of the COVID-19 outbreak on the
company's FY2020 results should be short-lived and the overall impact looks manageable.
(KL)