Morgan Stanley raises the target price of Zhongsheng Pharmaceutical to 8.3 yuan, rating it as "Overweight."

Morgan Stanley published a research report, updating the risk-return assessment for China National Pharmaceutical Group (01177.HK). It forecasts a decline in the group's sales of 1%, 3%, and 3% for the years 2026 to 2028, respectively. It expects the company's revenue to grow by 11% this year, benefiting from advance payments from Sanofi, as well as innovative drugs and biosimilars recording over 20% year-on-year growth, which is sufficient to offset the decline in generic drug unit numbers. Morgan Stanley raised the group's target price from HKD 8 to HKD 8.3, with a rating of "Overweight."