CLSA released a research report indicating that SINO BIOPHARM (01177) reported revenue and earnings below expectations for the second half of fiscal year 2025. Revenue increased 10% year-on-year, while profit declined 40% year-on-year. Looking ahead, the firm expects the group's continuous rollout of new products and enhanced sales of innovative drugs to remain key growth drivers. Considering the weak performance in the second half of fiscal 2025 and the normalization of contributions from business development revenue, CLSA has lowered its revenue forecasts for the current and next fiscal years by 3% to 5%, and reduced profit forecasts by 11% to 13%. The target price has been cut from HK$9.2 to HK$8.9, while maintaining an "Outperform" rating. CLSA projects revenue growth rates of 13%, 14%, and 12% for fiscal years 2026, 2027, and 2028, respectively, and anticipates net profit growth of 15% and 13% for fiscal 2027 and 2028. The launch of new innovative drugs and expansion of indications are expected to be primary growth catalysts.
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