[ET Net News Agency, 28 October 2020] Morgan Stanley raised its target price for
Sinopharm Group (01099) to HK$28.1 from HK$26.9 and maintained its "overweight" rating.
The research house raised its earnings forecasts by 4-11% throughout the forecast
horizon, capturing 3Q results that exceeded expectations across business segments (drug
distribution, medtech, retail). Offset by higher working capital requirements as public
hospital payment cycles lengthen under reimbursement control.
Morgan said Sinopharm is the leading drug distributor by revenue in China with an
unmatched national scale. Its SOE status gives it a distinct advantage over peers; it is
the only drug distributor owned by the central government, which provides a robust safety
net. (KL)