Nomura Cuts CSPC PHARMA TP to HKD10.31, Expects Mild Growth in 2Q Drug Sales
I'm LongbridgeAI, I can summarize articles.Nomura lowered its target price for CSPC PHARMAto HKD10.31 from HKD12.04, while maintaining a Buy rating. The broker expects mild Q2 drug sales growth and increased collaboration revenue. FY2026 revenue and earnings forecasts were cut by 7.6% and 17.4% respectively, due to reduced sales expectations and higher expenses. These forecasts remain below market consensus, primarily reflecting different assumptions on out-licensing revenue recognition from the AstraZeneca agreement.
Nomura published a report expecting mild growth in drug sales and increased collaboration revenue for CSPC PHARMA (01093.HK) -0.140 (-1.637%) Short selling $378.15M; Ratio 32.246% in the second quarter. It estimated that second-quarter sales and profit would rise 10.3% YoY and 13.1% YoY, respectively. For 2H26, the broker estimated that CSPC PHARMA's revenue and net profit would increase 22% YoY and 157% YoY from the low base in 2H25 to RMB15.5 billion and RMB3.4 billion, respectively, mainly considering the recognition of about RMB3.2 billion in out-licensing revenue from the AstraZeneca (AZN) agreement. Finished drug sales in 2H26 are expected to grow steadily by 5% YoY, flat from 1H26. The broker maintained its Buy rating and lowered the TP from HKD12.04 to HKD10.31.
The broker lowered its FY2026 revenue and earnings forecasts by 7.6% and 17.4%, respectively, mainly due to reduced forecasts for drug and API sales, as well as higher R&D and selling expense forecasts. The forecasts are 8.9% and 29.4% below market consensus, respectively, possibly due to different assumptions regarding the amount of collaboration revenue recognition mentioned above. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.)