CSPC Pharmaceutical: Buy Rating Reaffirmed as Earnings Visibility Improves and DCF-Based Target Price Raised to HK$13.44
I'm LongbridgeAI, I can summarize articles.CMB International Securities analyst Jill Wu reaffirmed a Buy rating on CSPC Pharmaceutical, raising the DCF-based target price to HK$13.44. The upgrade reflects improved earnings visibility, recovering core product sales, and strong out-licensing potential. Morgan Stanley also maintained a Buy rating with an HK$11.00 target.
CMB International Securities analyst Jill Wu maintained a Buy rating on CSPC Pharmaceutical Group today and set a price target of HK$13.44.
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Jill Wu has given his Buy rating due to a combination of factors that underscore both earnings visibility and long-term growth potential. She sees the domestic business having turned a corner, with core product sales recovering for several consecutive quarters, improving margins, and CNS drugs such as NBP gaining further traction through enhanced reimbursement and primary-care penetration.
In addition, Wu highlights a robust and scalable out-licensing engine that is already generating sizable upfront payments and should provide recurring, high-margin BD income as more assets are partnered globally. She also emphasizes CSPC’s rich late-stage pipeline, including multiple ADCs, bispecifics, and mRNA vaccines with numerous upcoming readouts, which together support her decision to maintain a Buy rating and to lift the DCF-based target price to HK$13.44.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a HK$11.00 price target.