Citigroup has lowered the earnings forecast per share for Sh Pharma for each year from 2024 to 2026 by 6%, 5%, and 5% respectively.
According to the latest report from CITIC Securities, Citigroup maintained a "buy" rating for Sh Pharma (02607), with a downgrade of the earnings forecast per share for each year from 2024 to 2026 by 6%, 5%, and 5%, reflecting challenges facing the pharmacy sector and narrowing profit margins in distribution business. The target price of the listed in hong kong shares has been reduced from HK$16.2 to HK$15.3.
The report stated that the company's third-quarter revenue increased by 8% year-on-year to 70 billion RMB (same below), but was affected by a decrease in gross margin, with net profit dropping by 6% year-on-year to 1.1 billion RMB. The gross margin for the period decreased to 10%, compared to 10.6% in the same period of the previous fiscal year. The company's management anticipates obtaining approval for 1 innovative drug next year, expecting sales of the traditional chinese medicine "Weifu Chun" to reach 1 billion RMB next year, with the other four traditional chinese medicine products generating revenue of 100 million RMB each.