Citigroup has lowered its earnings per share forecast for Shanghai Pharmaceuticals (02607) by 13.4% and 13.2% for the next two years.
According to the research report released by Citigroup, the earnings per share forecast for Shanghai Pharmaceuticals (02607) has been reduced by 13.4% and 13.2% for the next two years, reflecting the slowdown in industry growth in the second quarter of this year. The target price has been lowered from HKD 17.5 to HKD 16.2, while maintaining a 'buy' rating.
The report stated that the management of Shanghai Pharmaceuticals mentioned in a recent conference call that the company will continue to face pressure in its manufacturing business in the second quarter due to a price cut in polyene B. As for distribution business, the company remains above the industry average in the second quarter, benefiting from strong growth momentum in innovative drugs, medical equipment, and medical beauty sectors.