[ET Net News Agency, 29 March 2021] CLSA lifted its target price for Cansino Biologics
(06185) to HK$310 from HK$53.45 and lowered its rating to "outperform" from "buy" after a
367.5% share price surge since January 2020.
The research house said CanSino Bio's FY2020 net loss widened to Rmb397m driven by R&D
spending on its Ad5-nCoV vaccines (Convidencia), authorised by China and three other
countries with more countries to follow.
CLSA forecast Convidencia to deliver a "bolus injection" to 2021/22/23 revenue of
Rmb17bn/Rmb23.8bn/Rmb21.1bn before declining, leading to profit in 2021. The research
house warned that profit-taking is a possibility given supply chain risk, and it noted
that technical analysis suggests near-term range-bound trading. (KL)