UBS has released a research report adjusting its forecasts for CHINARES PHARMA (03320). The firm raised its earnings per share projections for the company by 14% to 15% from this year through 2028, reflecting reduced tax expenses and lower minority interests. However, it also increased capital expenditure estimates to account for the company's business expansion strategy. The target price for CHINARES PHARMA was lowered from HK$7.5 to HK$6.9, while the "Buy" rating was maintained. This target implies a projected price-to-earnings ratio of 9.3 times for the current year.
The report noted that the company's revenue last year increased by 4.6% year-over-year to RMB 269.56 billion, while attributable net profit rose by 20.7% to RMB 4.05 billion. Management indicated that excluding one-time items such as impairment losses, net profit grew by 14% compared to the prior year. UBS highlighted that the annual revenue was in line with market expectations, while profit exceeded forecasts.
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