To The Moon

Goldman SachsPublish a report, willCSPC Pharmaceutical GroupThe net profit forecast for each year from 2021 to 2023 was raised by 7.6%, 4.2% and 5.9%, respectively, and the target price was raised from RMB12.5 to RMB13.5 based on the classified and aggregated valuation method, with a "Buy" rating, including the lowering of the valuation of innovative drugs from RMB111 billion to RMB85.9 billion to reflect the impact of the price reduction of new drugs, but the valuation of generic drugs was raised from RMB24 billion to RMB52 billion, as more new generic drugs gain market share through volume procurement, which will improve the growth prospects of related businesses. Considering the price increase during the epidemic, the valuation of APIs was raised from 14 billion yuan to 23 billion yuan. Goldman Sachs pointed out that CSP's sales in the first quarter were 6.7 billion yuan, a year-on-year increase of 9.9%, slightly higher than expected, mainly due to the rapid sales growth of new products after price cuts and the strong oncology product portfolio. Even with the product price reduction, the profit margin in the first quarter expanded significantly, with the gross profit margin expanding by 3.1 percentage points year-on-year to 77%. It is estimated that the R&D expenses for the whole year will reach 3.4 billion yuan to support the acceleration of clinical progress. (ha/da) ~ ASTACK Financial News Website: www.aastocks.com