Golonghui November 5th | Goldman Sachs released research reports indicating that sh pharma's third-quarter sales this year increased by 8.2% year-on-year, higher than expected, mainly due to the stronger performance of its distribution business. The bank believes that sh pharma may have a better recovery performance in the Eastern region, surpassing industry peers in distribution growth due to a lower base set by the company; the performance of new businesses is driven by the VBPed brand drug partner relationship. Goldman Sachs mentioned that sh pharma's third-quarter profit performance deteriorated mainly due to a decrease in gross margin, a shift in income structure towards lower-profit distribution, as well as high financial costs and seasonal fluctuations. In addition, Goldman Sachs lowered sh pharma's net income forecast for the fiscal years 2024 to 2026 by 5.9%, 4.4%, and 3.9% respectively, with the target price lowered from HK$13.56 to HK$12.87, maintaining a "sell" rating.