Analyst Jill Wu from CMB International Securities maintained a Buy rating on CSPC Pharmaceutical Group (CHJTF – Research Report) and decreased the price target to HK$5.71 from HK$5.97.
Jill Wu’s rating is based on several strategic factors that highlight CSPC Pharmaceutical Group’s potential for growth despite current challenges. The company is experiencing a decline in revenue from its oncology and cardiovascular segments, primarily due to price cuts and inventory destocking. However, CSPC is expected to partially offset these declines with the introduction of new products, which are projected to generate significant sales in the coming fiscal year.
Moreover, CSPC’s robust business development strategy is a key factor in Wu’s Buy rating. The company has been actively out-licensing innovative assets, which is expected to become a sustainable revenue stream. CSPC’s strong R&D capabilities have resulted in a promising pipeline of assets with significant out-licensing potential. Additionally, the clinical progress of key products like EGFR ADC further supports the company’s growth prospects. These factors, combined with a forecasted increase in revenue and net profit, underpin Wu’s positive outlook on CSPC Pharmaceutical Group.
In another report released on March 31, Nomura also maintained a Buy rating on the stock with a HK$6.55 price target.
CHJTF’s price has also changed moderately for the past six months – from $0.785 to $0.561, which is a -28.54% drop .