Damo lowered Zhongsheng Pharmaceuticals' 2024-2026 earnings forecast per share by 8%-13%.
The Zhitong Finance App learned that Morgan Stanley released a research report stating that the target price for China Biopharmaceuticals (01177) was lowered by 4% from HK$5 to HK$4.8. The bank also lowered the target price of Zhongsheng Pharmaceuticals from HK$9.5 by 4.2% to HK$9.1, and the “bear” (most pessimistic) target price by 4.2% to HK$2.3 from HK$2.4, maintaining the “bullish” rating.
The bank said it will lower Zhongsheng Pharmaceuticals' 2024-2026 earnings forecast by 8%-13%, reflecting a decline in profits due to the sale of shares in a small number of subsidiaries in 2023 and an increase in F-Star R&D expenses. Damo's basic assumption about Zhongsheng Pharmaceuticals is that business growth is on the right track. Among them, oncology drugs will become the main contributors. Existing best-selling drugs will increase by more than 10% in the next few years, and pricing pressure is moderate.