The Zhitong Finance App learned that Shenwei Pharmaceutical (02877) continued yesterday's gains, rising more than 7% in early trading. As of press release, it had risen 7.16% to HK$7.78, with a turnover of HK$2,763,900.

According to the news, Shenwei Pharmaceutical recently announced that profit returned to the mother in 2022 is expected to increase by about 25% to 35% over the same period last year. The estimated increase in profit to the mother is mainly due to an increase of about 23% in the Group's overall sales revenue. Sales of all dosage forms increased during the period. Among them, sales of traditional Chinese medicine formula granules increased by about 59%.

Damo released a research report saying that after announcing that last year's initial profit growth rate increased 25% to 35%, Shenwei Pharmaceutical raised its profit forecast for last year by 6% and will raise its 2023-25 profit forecast by 1% to reflect higher sales expectations. Maintaining the “in sync with the market” rating, the target price was raised from HK$7.6 to HK$7.8.