BOC International released a research report stating that maintaining the “buy” rating of China Biopharmaceuticals (01177), the results of cost reduction and efficiency were remarkable last year. Revenue growth of 0.7% to RMB 26.2 billion was in line with expectations. It believes that the accelerated implementation of the company's R&D results is expected to drive growth recovery, and the target price rose from HK$4.55 to HK$4.8 billion.
BOC International said it lowered Zhongsheng Pharmaceutical's 2024-2025 net profit forecast by 18% and 14% to 2.75 billion yuan and 3.3 billion yuan, respectively, to reflect the company's continued divestment of non-core businesses after focusing on the four major treatment areas. Since last year's profit margins and cost reduction and efficiency results were better than expected, the outlook for the company's long-term profit margin is more optimistic.