CICC lowered its 2024/25 earnings forecast for Sinopharm Holdings (01099) per share by 10.9% and 12.6%.
The Zhitong Finance App learned that CICC released a research report stating that it maintained the “outperforming industry” rating of Sinopharm Holdings (01099) and lowered its 2024/25 earnings forecast by 10.9% and 12.6%, considering the impact of the decline in prescriptions in some departments on the hospital side affecting high-margin business. However, considering the long-term stability of the company's business, the target price was maintained at HK$24.7.
According to the report, Sinopharm's revenue for the 1st to 3rd quarter was 442.423 billion yuan, down 0.8% year on year; net profit to mother was 5.279 billion yuan, corresponding profit per share of 1.69 yuan, down 13.4% year on year, in line with this forecast. The revenue for the third quarter alone was 147.696 billion yuan, up 1.9% year on year and 0.2% quarter on quarter; net profit to mother was 1.575 billion yuan, down 20.9% year on year and 31% quarterly, mainly affected by the decline in the number of prescriptions on the hospital side of the industry. However, the bank expects the company's business to maintain a steady development trend in the long run.