UBS released a research report indicating that SH PHARMA (02607) reported a 3% year-on-year increase in total revenue last year, reaching RMB 284 billion. Net profit rose by 25.7% year-on-year to RMB 5.72 billion, while recurring net profit fell by 26.7% year-on-year to RMB 2.98 billion, largely in line with expectations. The firm adjusted its profit forecasts for SH PHARMA for the years 2026 to 2028, ranging from a 1% decrease to a 3% increase. The target price was raised from HK$15 to HK$15.2, with a "Buy" rating maintained. UBS highlighted that, considering SH PHARMA's strategic positioning, diversified business operations, and competitive advantages in rapidly growing sectors, it anticipates the company's growth during the "15th Five-Year Plan" period will outpace its pharmaceutical distribution peers.
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