Citigroup raises the target price of Shanghai Pharma to 14.2 yuan, maintaining a "Buy" rating

Citi has lowered its revenue forecast for Shanghai Pharma (02607.HK) for 2025 to 2027 by 3% to 6% to reflect the ongoing pressure on core business, and has reduced its earnings per share forecast for the same period by 12% to 14%.

However, the bank raised its target price for Shanghai Pharma from HKD 13.1 to HKD 14.2, as the market may underestimate the long-term value created by the company's manufacturing platform strategic restructuring, the huge potential of the commercial insurance market, and the clear progress in cost optimization; maintaining a "Buy" rating