According to a Goldman Sachs research report, Weigao Holdings (01066.HK) reported third-quarter revenue of RMB 3.26 billion, representing a year-on-year increase of 2.6%, compared to flat growth in the first half of the year. The pharmaceutical packaging and general medical consumables businesses remain under pressure as volume growth has been insufficient to offset pricing pressures brought by Volume-Based Procurement (VBP), especially for the flush syringes segment. Additionally, the rollout of products used during surgeries has been slower than expected amid a weak macroeconomic environment. In contrast, revenue growth in orthopedics, interventional therapy, and blood management segments was relatively stronger.
Given the ongoing pricing pressures, the firm lowered its 2025 revenue and net profit forecasts by 4.4% and 8.5%, respectively. It now expects full-year revenue to rise 1.9% year-on-year, while profitability is forecasted to decline 7.8%. The target price was reduced from HKD 7.8 to HKD 7.4, with the 'Buy' rating maintained.
