Goldman Sachs: Lowered CSPC PHARMA (01093) target price to HK$7.84, maintains "buy" rating.

Goldman Sachs released a research report stating that CSPC PHARMA (01093) had weak fourth quarter performance as expected, with the deepening impact of destocking and ongoing centralized procurement being the main reasons. The bank adjusted the profit forecast for the company for the next two years by 5.2% and 5.8% due to increased research and development expenses. The target price was lowered from HK$8.52 to HK$7.84, with a "buy" rating maintained. The bank cited management as saying that the company is expected to resume growth this year, benefiting from a low base and incremental sales of approximately 1.5 billion RMB from new drugs launched after 2021. The bank noted that sales in the fourth quarter of last year were 6.32 billion RMB, a 16.6% year-on-year decrease, with finished pharmaceutical sales down 20% year-on-year, and oncology drug sales down 61% year-on-year, particularly weak due to the impact of docetaxel and Cinuclotide from centralized procurement.