[ET Net News Agency, 29 December 2020] Daiwa Research lowered its target price for CSPC
Pharmaceutical (01093) to HK$6.8 from HK$7 and maintained its "sell" rating.
CSPC yesterday announced that its key product, NBP, received price cuts of 55.6% and
51.3% for capsule and injection, respectively, in the 2020 NRDL (National Reimbursement
Drug List) renegotiation. The price will be effective from 1 March 2021 and CSPC expects
short-term downward pressure on product revenue.
Given the worse-than-expected price cut, the research house now sees it reaching an
earlier peak in 2020 with revenue of CNY7.3bn. Despite CSPC's efforts to penetrate
lower-tier markets and expand to new indications, Daiwa does not see NBP's sales volume
growth doubling from the high base in 2020 to be enough to offset the 50% price cut.
It cut its 2021-22 EPS forecasts by 9-12% to reflect the lower revenue forecasts for
NBP. (KL)
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01093 CSPC PHARMA
Nominal 
5.770 -0.090 (-1.536%) Research Report
29/12/2020 09:44
{I-bank focus}Daiwa lowers CSPC Pharma (01093) to HK$6.8
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