Nomura predicts that Sinopharm (01099) will have flat performance in Q2 2024, with a possible 5.3% year-on-year decline in profit.
Zhongtong Finance app learned that Nomura released a research report stating that it lowered Sinopharm (01099)'s target price from HKD 32.39 to HKD 30.33, a 6.4% decrease, while maintaining a 'buy' investment rating. In the second quarter of 2023, with a high base and a pessimistic environment, the bank predicts that Sinopharm's performance in Q2 2024 will be flat, with a possible 5.3% YoY decline in profit.
The report states that adjusting Sinopharm's target price means about 63% upside potential. The bank lowered its sales forecasts for Sinopharm in fiscal years 2024 and 2025 by 1.6% and 2.9%, respectively, and adjusted profit forecasts up 0.1% and down 0.2%, respectively, to consider a macro environment slower than expected. The bank's forecasts for Sinopharm's revenue and profit for fiscal years 2024 and 2025 are 1.8% and 4.1% lower than market consensus, respectively, and 2.7% and 3% lower, respectively.
