UBS lowers the target price for SINO BIOPHARM to 11 yuan, rating it as "Buy"

UBS published a research report indicating that SINO BIOPHARM (01177.HK) had a revenue of RMB 31.8 billion last year, an increase of 10.3% year-on-year, which was below expectations; net profit reached RMB 2.3 billion, a year-on-year increase of 22%, also below expectations; gross profit margin increased by 0.6 percentage points year-on-year to 82.1%. Management expects that driven by the continuous growth of innovative products, revenue and profit will achieve double-digit growth this year.

The bank raised its earnings per share forecast for SINO BIOPHARM this year by 9.4%, but lowered its earnings per share forecasts for 2027 and 2028 due to lower expectations for revenue and profitability from generic drugs. Additionally, it lowered the company's target price from HKD 12.2 to HKD 11 and reiterated its "Buy" rating