--- title: "SBP GROUP Gains 3.6% by Midday; BofAS Raises TP to HKD7.1 and Lifts Earnings Forecasts" type: "News" locale: "en" url: "https://longbridge.com/en/news/296568117.md" description: "SBP GROUPshares rose 3.6% to HKD5.585 by midday, extending gains for two days post-results. Bank of America Securities upgraded its target price from HKD6.2 to HKD7.1 and raised earnings forecasts for 2026-2028 significantly, citing strong growth in innovative drugs and licensing revenue. Despite lowering revenue forecasts slightly due to anti-corruption impacts on generics, the broker maintained a Buy rating, highlighting improved operating leverage and core profit growth." datetime: "2026-08-21T04:41:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296568117.md) - [en](https://longbridge.com/en/news/296568117.md) - [zh-HK](https://longbridge.com/zh-HK/news/296568117.md) generator: "portal-rs" --- # SBP GROUP Gains 3.6% by Midday; BofAS Raises TP to HKD7.1 and Lifts Earnings Forecasts SBP GROUP (01177.HK) +0.195 (+3.618%) Short selling $377.73M; Ratio 17.900% extended gains for two consecutive trading days after its results announcement. By midday close today (21st), the stock reported at HKD5.585, up 3.62%, with turnover of 64.6225 million shares involving HKD356 million. BofAS issued a report stating that SBP GROUP's revenue in 1H26 rose 10.6% YoY to RMB19.44 billion, driven by growth in innovative drugs and out-licensing. Revenue from innovative drugs and licensing combined increased 44.3% YoY to RMB8.79 billion, accounting for 45.2% of total revenue, up from 34.7% in 1H25. Gross profit rose 11.4% YoY to RMB16.15 billion, while gross margin expanded 0.6 ppts to 83%. Selling and distribution expenses fell 18.4% YoY to RMB5.26 billion, administrative expenses declined 11.3% to RMB969 million, and R&D expenses dropped 3.4% to RMB3.08 billion, reflecting improved operating leverage. Profit attributable to shareholders increased 1.4% YoY to RMB3.43 billion, while core profit rose 8.1% YoY to RMB3.34 billion. Excluding dividend income from Sinovac Life Sciences, core profit surged 92.3% YoY to RMB3.34 billion, indicating a significant enhancement in core earnings capability despite reduced dividend income and fair value gains. The broker lowered its 2026 and 2027 revenue forecasts by 1.4% and 3.1%, respectively, considering the impact of anti-corruption measures on the generic drug business. However, it adjusted marketing and administrative expense assumptions to reflect the improved ratios seen in the first half, and incorporated potential upfront payments from new licensing deals into its discounted cash flow model. The broker forecast 2026 profit attributable to shareholders at about RMB5.1 billion, compared with its previous estimate of RMB4 billion. It raised the TP from HKD6.2 to HKD7.1 and reiterated the Buy rating. The broker also raised its forecasts for net profit attributable to shareholders for 2026 to 2028 by 28.2%, 52.6% and 55.9%, respectively, to RMB5.13 billion, RMB6.092 billion and RMB6.853 billion. ### Related Stocks - [01177.HK](https://longbridge.com/en/quote/01177.HK.md) - [BAC.US](https://longbridge.com/en/quote/BAC.US.md) - [BAC-Q.US](https://longbridge.com/en/quote/BAC-Q.US.md) - [BML-L.US](https://longbridge.com/en/quote/BML-L.US.md) - [BAC-L.US](https://longbridge.com/en/quote/BAC-L.US.md) - [BAC-K.US](https://longbridge.com/en/quote/BAC-K.US.md) - [BML-H.US](https://longbridge.com/en/quote/BML-H.US.md) - [BAC-N.US](https://longbridge.com/en/quote/BAC-N.US.md) - [BAC-E.US](https://longbridge.com/en/quote/BAC-E.US.md) - [MER-K.US](https://longbridge.com/en/quote/MER-K.US.md) - [BAC-O.US](https://longbridge.com/en/quote/BAC-O.US.md) - [BML-G.US](https://longbridge.com/en/quote/BML-G.US.md) - [BAC-M.US](https://longbridge.com/en/quote/BAC-M.US.md) - [BAC-B.US](https://longbridge.com/en/quote/BAC-B.US.md) - [BML-J.US](https://longbridge.com/en/quote/BML-J.US.md) - [BAC-S.US](https://longbridge.com/en/quote/BAC-S.US.md) - [BAC-P.US](https://longbridge.com/en/quote/BAC-P.US.md) - [8648.JP](https://longbridge.com/en/quote/8648.JP.md) ## Related News & Research - [SBP GROUP Interim Net Profit Rises 1.4% YoY to RMB3.43B; Div 7 HK Cents](https://longbridge.com/en/news/296327356.md) - [Sino Biopharm declares 2026 interim dividend of HKD 0.07 a share](https://longbridge.com/en/news/296324109.md) - [Sino Biopharma rebrands as SBP Group, targets global expansion via direct commercial rollout and partnerships](https://longbridge.com/en/news/296447837.md) - [Sino Biopharma wins FDA clearance to start trial of CPX301 GLP-1 weight-loss microneedle patch](https://longbridge.com/en/news/296857285.md) - [Sino Biopharm says NMPA clears TQF6422 obesity drug candidate for clinical trial](https://longbridge.com/en/news/296603125.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**