On August 22, Gelonghui reported that cspc pharma (1093.HK) experienced a significant post-results drop, with the stock plunging nearly 15% to 4.83 Hong Kong dollars at one point, marking a new low since January 2019. It finally closed down 14.44% at 4.86 Hong Kong dollars, with a transaction volume of 1.852 billion Hong Kong dollars. Citigroup issued a report indicating that cspc pharma's interim performance fell short of expectations, with a 1.3% year-on-year increase in first-half revenue to 16.3 billion yuan, 7% lower than the bank's and market forecasts. Interim finished pharmaceuticals grew by only 4.8% year-on-year, falling short of the company's double-digit growth guidance. Due to the drag from oncology drug sales, second-quarter finished pharmaceutical revenue fell by 8% year-on-year to 6 billion yuan. Citigroup has adjusted downward its revenue forecasts for the years 2024 to 2026 by 9%, 17%, and 22%, to reflect the decline in oncology drug sales and slower-than-expected sales of innovative products. Earnings per share forecasts for the same years have also been reduced by 10%, 18%, and 23%. The target price has accordingly been lowered from 13 Hong Kong dollars to 10 Hong Kong dollars, maintaining a "buy" rating. Goldman Sachs issued a research report stating that cspc pharma's second-quarter performance fell short of expectations, with a 9% sales decline compared to the previous year, significantly lower than the bank's own conservative expectations. This was mainly due to the impact of volume-based procurement (VBP) on several oncology and cardiovascular drugs, as well as lower marketing effectiveness under the new industry guidance. In view of cspc pharma's new VBP dynamics and continued impact in 2025, the bank has revised its sales growth forecasts for finished pharmaceuticals for the 2024 and 2025 fiscal years to 4% and 6.5%, respectively. In addition, Goldman Sachs has lowered the sales forecasts for the years 2024 to 2026 by 10.7%, 13.5%, and 12.4%, and the profit forecasts have been reduced by 6.1%, 13.2%, and 10.6%, taking into consideration the sustained impact of VBP on major oncology drugs and the slower-than-expected sales of new drugs. The bank has lowered cspc pharma's target price from 10.26 Hong Kong dollars to 10.03 Hong Kong dollars, maintaining a "buy" rating.