GlorySow Nov 12th | Citigroup's research report stated that Shanghai Pharma's third-quarter revenue increased by 8% year-on-year to 70 billion yuan, affected by a decrease in gross margin, net profit dropped by 6% year-on-year to 1.1 billion yuan, with a gross margin decline to 10% during the period, compared to 10.6% in the same period last fiscal year. The company's management expects to obtain approval for one innovative drug next year. It is expected that the sales of the traditional Chinese medicine Wei Fu Chun will reach 1 billion yuan next year, and the other four traditional Chinese medicine products will each generate 0.1 billion yuan in revenue. The bank lowered its earnings forecast per share by 6%, 5%, and 5% for the years 2024 to 2026, respectively, to reflect challenges faced by the pharmaceutical sector, as well as narrowing profit margins in distribution business. The target price of H shares has been revised down from 16.2 Hong Kong dollars to 15.3 Hong Kong dollars, maintaining a "buy" rating.