Nomura expects Sinopharm Holdings (01099)'s results for the second fiscal quarter of 2024 to remain flat, and profits may decrease 5.3% year over year.
The Zhitong Finance App learned that Nomura released a research report stating that the target price of Sinopharm Holdings (01099) was lowered by 6.4% from HK$32.39 to HK$30.33 to maintain a “buy” investment rating. In a high base and pessimistic environment for the second quarter of 2023, the bank expects Sinopharm's results for the second fiscal quarter of 2024 to remain flat, and profits may decrease by 5.3% year-on-year.
According to the report, adjusting the target price of Sinopharm means that there is room for an increase of about 63%. The bank lowered Sinopharm's sales forecast for 2024 and FY25 by 1.6% and 2.9%, and fine-tuned the profit forecast by 0.1% and 0.2% to take into account the slowdown in the macro environment compared to expectations. The bank's revenue and profit forecasts for Sinopharm 2024 and FY25 were 1.8%, 4.1%, 2.7%, and 3% lower than the institutional consensus, respectively.