Jinwu Financial News | Sinopharm Holdings (01099) bucked the market. As of press release, it reported HK$20.55, up 2.96%, with a turnover of HK$32.870,400.
According to a research report published by Yamato, Sinopharm's profit performance in the last quarter was mainly driven by higher gross margin than expected, as well as non-operating income and lower financial expenses. Revenue for the last quarter increased by 3.4% year-on-year, which was the same year over year in the third quarter of last year, reflecting the return of the company's revenue to a growth trajectory. According to the bank, the Group's gross margin pressure for the fourth quarter of last year seems to have decreased compared to the first three quarters of last year. It is expected that gross margin will continue to improve between 2023 and 2026, and the profit forecast per share will be raised by 3% to 6%. It believes that apart from the impact of volume procurement, industry anti-corruption regulations have not had a significant adverse impact, raising the target price slightly to HK$26 and maintaining a “buy” rating.
According to the Citigroup report, Sinopharm's revenue and net profit increased by 8% and 6.2% year-on-year respectively last year, which is generally in line with the bank's and market expectations. The bank adjusted Sinopharm's earnings forecast of 1% to 2% per share for this year and next two years, raising the company's target price from HK$26 to HK$30, doubling the projected price-earnings growth (PEG) rate this year, and maintaining a “buy” investment rating.