Citigroup Lowers Shanghai Pharma (02607) Target Price to HK$13.50, Citing Margin Pressure; Reiterates "Buy" Rating

Stock News04-14

Citigroup has adjusted its revenue forecasts for Shanghai Pharmaceuticals (02607) for the current and next fiscal years based on recent sales trends. The bank also revised its net profit projections downward, reflecting margin pressures, while introducing forecasts for 2028. Potential downside risks identified include execution challenges from management, slower-than-expected integration progress, and delays in the relaxation of policies governing online prescription drug sales. Citigroup reduced its target price for Shanghai Pharma from HK$14.20 to HK$13.50 but reaffirmed its "Buy" rating. Updated forecasts project revenues for 2026 to 2028 at RMB 298.58 billion, RMB 319.018 billion, and RMB 340.901 billion, respectively, with net profits estimated at RMB 4.956 billion, RMB 5.394 billion, and RMB 5.768 billion for the same periods.

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