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<Research>CLSA Sees CN Biopharma Stock Pullback as Compelling Buy Opportunity, Favors CSPC PHARMA/ SINOPHARM
Recommend 24 Positive 39 Negative 21 |
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China's biotechnology and innovative drug industry has experienced volatility triggered by overvaluation caused by previous price hikes, uncertainty over national medical insurance drug pricing, delayed business expansion expectations, and year-end fund sales, according to a report from CLSA. From CLSA's perspective, market liquidity remains robust, valuations of quality companies are becoming attractive, business expansion activities are ongoing, large transactions are still possible, and further downside price risk seems limited. With the rising proportion of innovative drugs and accelerated earnings growth, CLSA sees the current pullback as a healthy consolidation, providing attractive opportunities for deployment next year. Considering that delays in CSPC PHARMA (01093.HK)'s business expansion execution have weakened investor confidence, CLSA believes this will create more attractive buying opportunities. Regarding SINOPHARM (01099.HK), CLSA expects improvement in accounts receivable days and the initiation of China's 15th Five-Year Plan to support the recovery of the company's earnings momentum. Stock│Investment Rating│Target Price CSPC PHARMA (01093.HK)│High-Conviction Outperform│HKD17.4 SINOPHARM (01099.HK)│Outperform│HKD24.5 AAStocks Financial News |
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