According to the optimistic hypothesis, Tongrentang Sinopharm (03613) sales growth is 20% or more per year.
The Zhitong Finance App learned that Morgan Stanley released a research report stating that it maintained the “gain” rating of Tong Ren Tang Sinopharm (03613) and lowered the 2024-2030 profit forecast by 8%-14% after publishing the 2023 results and management outlook. The main reason was the decline in sales in Hong Kong and the mainland, and the target price was lowered by 12% to HK$15 from HK$17.
Damo also pointed out that the optimistic assumption is that its sales growth is 20% or more per year; the basic assumption is that the compound annual sales growth rate (CAGR) of major products will stabilize at more than 10% in 2023-2025, while the pessimistic assumption is that sales will slow down.