King's Wealth Newsletter | Nomura Research predicts that CSPC Pharma (01093) will experience a 4.3% year-on-year decline in profits in the third quarter of 2024. It is expected that the revenue will increase by 0.3% to 7.8 billion yuan, which is 3% lower than market expectations, reflecting improvements in finished products and active pharmaceutical ingredients, as well as the lower base in the third quarter of 2023.

The bank has raised the company's revenue and profit forecasts for the 2024 fiscal year by 0.9% and 1.8%, mainly due to $0.1 billion in revenue from external licensing agreements, offsetting the bank's downward sales expectations for the company's pharmaceuticals. At the same time, the revenue and profit forecasts for the 2025 fiscal year have been reduced by 3.3% and 4%. The company's target price has been lowered by 8.9% to 8.46 Hong Kong dollars from 9.29 Hong Kong dollars. The "buy" rating is maintained.