According to a research report published by DBS, the profit of Weigao shares fell 27.6% year-on-year in 2023, in line with the profit announcement issued earlier, mainly due to falling prices of medical devices and consumables products in different businesses due to volume procurement policies, and no longer selling products related to the epidemic. Accordingly, DBS lowered Weigao's profit forecast for 2024 to 2025 by 32% and 35%, and the target price was lowered from HK$11.6 to HK$6.4.
However, the bank pointed out that Weigao's stock price has fallen 37% a few years ago. Negative factors are expected to be fully reflected in the stock price performance. It is optimistic that the company is a leading supplier of medical consumables and pharmaceutical packaging in China. It believes that the industry's trend of diet medicine will drive the company's demand for pharmaceutical packaging to grow and maintain a “buy” rating.