The Zhitong Finance App learned that UBS released a research report stating that it reaffirmed the “buy” rating of CSPC Group (01093) and raised the target price to HK$10.1.

According to the report, the Group's revenue for the first quarter was RMB 8.983 billion, up 11.5% year on year, exceeding the market and expectations of 12% and 34%. This was mainly driven by strong growth in the finished drug sector. Profit increased by 12.9% year-on-year to RMB 1,613 billion, which is also 10% and 44% higher than the market and the bank's expectations.

The bank stated that the goal of CSPC Group is to achieve double-digit growth in finished drug revenue by 2024, and reiterated the guideline that the total sales volume of the 10 drugs to be launched will be 3 billion yuan. The bank expects the Group's gross margin and sales expenses ratio to be higher from 2024 to 2028. The bank raised the Group's 2024-2026 earnings per share forecast by 6%, 7% and 8%, respectively.