Recently, since the financial 'combination policy' was released on September 24th, with the continuous stimulation of bullish policies and the first rate cut by the Federal Reserve since March 2020, the three major A-share indexes have risen for three consecutive days. On September 26th, the Shanghai Composite Index reclaimed 3000 points. In the pharmaceutical sector, leading domestic pharmaceutical company Fosun Pharma (600196.SH;02196.HK) both A and H shares have been rising for several consecutive days, leading the sector.

Since the beginning of this year, Fosun Pharma has frequently undertaken share buybacks, demonstrating confidence in the company's development. The announcement shows that as of the market close on September 25, 2024, the period for implementing the A-share buyback plan has expired, and the company has completed the implementation of the plan. During the A-share buyback process, the company actually repurchased 5.6777 million shares of A shares, with a total repurchase amount of approximately 1.27 billion yuan, and the repurchase price ranged from 23.52 yuan/share to 21.87 yuan/share. At the same time, the company repurchased 547.15 shares of H shares, accounting for 0.20% of the company's total share capital, with a total repurchase amount of approximately 66.8959 million Hong Kong dollars.

On September 26, 2024, the China Bank Research Institute released the 'Fourth Quarter 2024 Economic and Financial Outlook Report', believing that in the fourth quarter of 2024, with the intensive release of a series of recent policy measures and other bullish factors such as the expected improvement in the profit-making ability of listed companies, A-shares are expected to recover amid fluctuations. The biomedical, consumer electronics industries, and advantageous medium to high-end manufacturing industries may have relatively bright performances.

In the first half of 2024, Fosun Pharma achieved revenue of 20.463 billion yuan, with a year-on-year revenue growth of 5.31% excluding the impact of COVID-19-related product revenue. It achieved a net profit attributable to the parent company of 1.254 billion yuan, with a net profit attributable to the parent company of 0.646 billion yuan in the second quarter of 2024, an increase of 0.037 billion yuan from the previous quarter. The pharmaceutical business is Fosun Pharma's core sector, and in the first half of 2024, it achieved revenue of 14.677 billion yuan, accounting for 71.72% of total revenue. Among them, revenue from innovative drugs exceeded 3.7 billion yuan, maintaining steady growth.

According to the Zhitong Finance app, this year Fosun Pharma has been frequent in focusing on its core innovative businesses, announcing plans to privatize the innovative drug platform Henlius and fully acquire Fosun Kite, demonstrating further shareholding in core innovative assets for the company. By increasing revenue, better synergies can be generated. The proportion of revenue from innovative drugs will further increase, driving the company towards higher levels of revenue growth.

In the past six months, with the basic clearance of COVID-19 products and further focus on innovative drugs and high-value medical devices, Fosun Pharma has received positive assessments from many investment institutions. Among them, Morgan Stanley has raised its target price for Fosun Pharma's Hong Kong-listed stock to 17 Hong Kong dollars and maintained an 'increase holding' rating for Fosun Pharma. Another international bank, Citigroup, has a latest target price of 20 Hong Kong dollars for Fosun Pharma's H shares, maintaining an 'increase holding' rating. Citic Securities has given a target price of 32 yuan for Fosun Pharma's A shares and maintained a 'buy' rating.