Glonghui, March 13 | Yamato published a report, giving Sinopharm Holdings a “buy” rating for the first time. The target price is HK$25, corresponding to a target price-earnings ratio of 7.5 times, while the current price is equivalent to 6.6 times the predicted price-earnings ratio in 2024, which is 6.5 to 7.4 times that of the domestic industry. Yamato pointed out that Sinopharm has an unquestionable leading position in China's pharmaceutical distribution industry, with a market share of 25%. Based on a favorable policy environment and competitive pattern, it is expected that the time is ripe for further integration of the industry. It believes that investing in Sinopharm is a long-term investment option. It is expected that its supply chain service capabilities will have a synergy effect with its traditional distribution business and bring room for improvement in profit margins. The bank predicts that under the influence of anti-corruption in the industry last year, Sinopharm's profits will fall 3% year-on-year for the whole of last year. However, it is believed that regulatory factors have been eliminated, and it is predicted that profits will rebound this year, recording a year-on-year increase of about 13%. The bank believes that the company has gone through the worst period in the third quarter of last year. Sinopharm's revenue is expected to rise 7.4% year-on-year in the late quarter of last year, which is better than the year-on-year level in the third quarter of last year.