Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research> Nomura Lowers China Resources Pharmaceutical (03320.HK) TP to HKD7.52, Maintains 'Buy' Rating
Recommend 1 Positive 2 Negative 2 |
||||
|
||||
|
Nomura released a research report stating that China Resources Pharmaceutical (03320.HK) is expected to achieve a full-year revenue growth of 4.6% year-on-year in 2025, reaching RMB269.6 billion, which is 8% below market expectations. The net profit attributable to shareholders is projected to grow by 21% year-on-year to RMB4.045 billion, exceeding market expectations by 2.3%. In the second half of the year alone, revenue is expected to grow by 6.7% year-on-year to RMB137.7 billion, and net profit is expected to increase by 164% year-on-year to RMB1.97 billion, primarily due to a low base effect. The firm noted that in the second half of last year, China Resources Pharmaceutical's pharmaceutical distribution business revenue grew by 3.5% year-on-year to RMB103.7 billion, partly benefiting from improvements in the medical device distribution business. The pharmaceutical business sales increased by 15.7% year-on-year to RMB20.4 billion, driven by accelerated growth of China Resources Sanjiu (000999.SZ) and sales contributions from the acquisition of Tasly (600535.SH). The pharmaceutical retail business revenue grew by 29.9% year-on-year to RMB6.7 billion, driven by rapid growth in direct-to-patient business. The faster profit growth was mainly due to revenue improvement and a 1.4 percentage point increase in gross margin to 16.7%, benefiting from a higher proportion of high-margin pharmaceutical business revenue and a 15% year-on-year reduction in tax expenses to RMB780 million in the second half. During the earnings conference, management stated that sales to public hospitals are still affected by policies such as volume-based procurement and the renewal of the national medical insurance drug list. They expect an annual compound growth rate of 1% to 3% in sales from 2026 to 2030. The medical device distribution business is expected to achieve a revenue of RMB35.1 billion in 2025, growing by 14% year-on-year, and is expected to maintain rapid growth in 2026. The contract sales organization business is expected to double its revenue to RMB6 billion in 2025, with management expecting a 50% year-on-year growth in 2026. Due to the lower-than-expected performance in 2025, Nomura has revised down its 2026 revenue and profit forecasts for China Resources Pharmaceutical by 22% and 26%, respectively, while maintaining a 'Buy' rating and lowering the target price from HKD8.8 to HKD7.52. (ec/j) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
