GLONGHUI, September 4 | CICC released a report indicating that Fosun Pharmaceutical's revenue for the first half of the year was 21.4 billion yuan, a slight increase of 0.2% year-on-year; net profit of 1.78 billion yuan, an increase of 15.7% year-on-year. After deducting net profit of $1.37 billion from non-recurring items, the year-on-year decrease was 26.3%. According to the report, due to factors such as the decline in anti-epidemic products from year to year, increased competition in Gland Pharma and the suspension of some production lines, and an increase in financial expenses and exchange losses due to US dollar interest rate hikes and appreciation, net profit for the first half of the year and the second quarter of the drug is lower than the bank's expectations unless recurring projects are lower than the bank's expectations. Considering the year-on-year decline in anti-epidemic products and increased competition for generic drugs, etc., CICC lowered its 2023 and 2024 earnings estimates by 27% and 33%, respectively, to 3.3 billion and 3.5 billion yuan, maintaining the “outperforming industry” rating, and considering the smooth progress of the innovation pipeline, it only lowered the target price of H shares by 10% to HK$27.5.