The Zhitong Finance App learned that Morgan Stanley released a research report stating that it gave Kangzhe Pharmaceutical (00867) an “increase” rating and lowered earnings estimates per share by 12%, 10%, and 8.3% for each year from 2023 to 2025, respectively. It is believed that with a low revenue base, the operating expenses ratio increased slightly, and the target price was slightly raised from HK$17.6 to HK$17.8.

According to the report, the bank lowered the company's revenue forecast for each year from 2023 to 2025 by 6.6%, 7.9% and 7.7% due to ongoing anti-corruption actions by mainland pharmaceuticals. Also, revenue forecasts for the company's core products, such as Deanxit, Plendil, and Ursofalk, were lowered due to clear resistance to drug sales based on volume procurement plans.