CSPC Pharmaceutical Group (P Chip)

CSPC Pharmaceutical is an investment holding company. Through its subsidiaries, Co. is principally engaged in the manufacture and sale of pharmaceutical products. Co.'s operating segments include: Finished drugs; Antibiotics (intermediates and bulk drugs; Vitamin C (bulk drugs); and Caffeine and others (bulk drugs). As of Dec 31 2014, Co. had over 170 products under research and development, with focus on the therapeutic areas of cardio-cerebrovascular, diabetes, oncology, neurology and anti-infective.
  • Ticker1093
  • ISINHK1093012172
  • ExchangeHong Kong Stock Exchange
  • SectorPharmaceuticals & Biotechnology
  • CountryHong Kong

Analysts

UOB
Carol Dou Xiao Qin ...
  • Ivy Xu Da
  • Jason Wong Chun Sang
  • Julia Pan Mengyao
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Robin Yuen

Greater China Daily: Monday, November 4, 2019

KEY HIGHLIGHTS Initiate Coverage Weimob (2013 HK/BUY/HK$3.53/Target: HK$6.20) Top SaaS performer in decentralised e-commerce, aided by strong targeted marketing growth. Results Alibaba Group (BABA US/BUY/US$176.67/Target: US$220.00) 2QFY20: Solid beat on strong top-line growth and disciplined cost control. Midea (000333 CH/BUY/Rmb58.89/Target: Rmb61.00) 3Q19: Earnings beat on margin expansion. Update CSPC Pharmaceutical Group (1093 HK/BUY/HK$19.82/Target: HK$24.70) Transforming into an innovative company. Small/Mid Cap Highlights JNBY Design (3306 HK/BUY/HK$11.20/Target: HK$16....

UOB
Carol Dou Xiao Qin ...
  • Chong Lee Len
  • Ivy Xu Da
  • Jacquelyn Yow Hui Li
  • Jason Wong Chun Sang
  • Jie Ying Chloe Tan
  • Jonathan Koh
  • Julia Pan Mengyao
  • Kong Ho Meng
  • Leow Huey Chuen
  • Loke Pei Hao
  • Malaysia Research Team
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Robin Yuen
  • Singapore Research Team
  • Stevanus Juanda
  • Thailand Research Team
  • Thananchai Jittanoon
  • Vincent Khoo Boo Aik

Regional Morning Notes - Monday, November 4, 2019

REGIONAL Sector Plantation: CPO price is trending up and likely to sustain as supply in 2020 could be lower due to more severe-than-expected dryness and fertiliser reduction. Upgrade to OVERWEIGHT. GREATER CHINA Initiate Coverage Weimob (2013 HK/BUY/HK$3.53/Target: HK$6.20): Top SaaS performer in decentralised e-commerce, aided by strong targeted marketing growth. Results Alibaba Group (BABA US/BUY/US$176.67/Target: US$220.00): 2QFY20: Solid beat on strong top-line growth and disciplined cost control. Midea (000333 SZ/BUY/Rmb58.89/Target: Rmb61.00): 3Q19: Earnings beat on margin expa...

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

CSPC Pharmaceutical Group - Transforming into an innovative company.

CSPC has built a strong pipeline and is transforming into an innovative company. It targets to launch 12 innovative blockbusters in 2020-22. As the company continues to expand sales force and penetrate into lower-tier markets, we believe the earnings growth would remain steady and strong at over a 20% CAGR in 2019-21. Maintain BUY with a higher target price of HK$24.70 to reflect its stronger-than-expected pipeline.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

CSPC Pharmaceutical Group - Zhejiang Monitoring List poses limited impact on NBP capsule, BUY on weakness.

The Zhejiang Drug Monitoring List will have little impact on CSPC as its market penetration effort will continue to support the robust revenue growth of NBP. Moreover, CSPC sees future GPOs offering great market expansion opportunities, and expects Clopidogrel to bring in sales revenue of Rmb500m in 2020. Its focus on innovation and R&D is gradually bearing fruit. We forecast revenue and earnings to grow at a 20.0% and 17.5% CAGR in 2019-21 respectively. BUY on weakness. Target: HK$18.80.

UOB
Carol Dou Xiao Qin ...
  • Julia Pan Mengyao
  • Michael Cheung Ho Bun
  • Oscar Jiang

Greater China Daily: Monday, October 14, 2019

KEY HIGHLIGHTS Update CSPC Pharmaceutical Group (1093 HK/BUY/HK$16.02/Target: HK$18.80) Zhejiang Monitoring List poses limited impact on NBP capsule, BUY on weakness. NetEase (NTES US/HOLD/US$258.96/Target: US$269.52) Kaola spin-off and Youdao IPO; attention back on game and cloud music. Downgrade to HOLD.

UOB
Carol Dou Xiao Qin ...
  • Ivy Xu Da
  • Jason Wong Chun Sang
  • Julia Pan Mengyao
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Robin Yuen

Greater China Daily: Monday, November 4, 2019

KEY HIGHLIGHTS Initiate Coverage Weimob (2013 HK/BUY/HK$3.53/Target: HK$6.20) Top SaaS performer in decentralised e-commerce, aided by strong targeted marketing growth. Results Alibaba Group (BABA US/BUY/US$176.67/Target: US$220.00) 2QFY20: Solid beat on strong top-line growth and disciplined cost control. Midea (000333 CH/BUY/Rmb58.89/Target: Rmb61.00) 3Q19: Earnings beat on margin expansion. Update CSPC Pharmaceutical Group (1093 HK/BUY/HK$19.82/Target: HK$24.70) Transforming into an innovative company. Small/Mid Cap Highlights JNBY Design (3306 HK/BUY/HK$11.20/Target: HK$16....

UOB
Carol Dou Xiao Qin ...
  • Chong Lee Len
  • Ivy Xu Da
  • Jacquelyn Yow Hui Li
  • Jason Wong Chun Sang
  • Jie Ying Chloe Tan
  • Jonathan Koh
  • Julia Pan Mengyao
  • Kong Ho Meng
  • Leow Huey Chuen
  • Loke Pei Hao
  • Malaysia Research Team
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Robin Yuen
  • Singapore Research Team
  • Stevanus Juanda
  • Thailand Research Team
  • Thananchai Jittanoon
  • Vincent Khoo Boo Aik

Regional Morning Notes - Monday, November 4, 2019

REGIONAL Sector Plantation: CPO price is trending up and likely to sustain as supply in 2020 could be lower due to more severe-than-expected dryness and fertiliser reduction. Upgrade to OVERWEIGHT. GREATER CHINA Initiate Coverage Weimob (2013 HK/BUY/HK$3.53/Target: HK$6.20): Top SaaS performer in decentralised e-commerce, aided by strong targeted marketing growth. Results Alibaba Group (BABA US/BUY/US$176.67/Target: US$220.00): 2QFY20: Solid beat on strong top-line growth and disciplined cost control. Midea (000333 SZ/BUY/Rmb58.89/Target: Rmb61.00): 3Q19: Earnings beat on margin expa...

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

CSPC Pharmaceutical Group - Transforming into an innovative company.

CSPC has built a strong pipeline and is transforming into an innovative company. It targets to launch 12 innovative blockbusters in 2020-22. As the company continues to expand sales force and penetrate into lower-tier markets, we believe the earnings growth would remain steady and strong at over a 20% CAGR in 2019-21. Maintain BUY with a higher target price of HK$24.70 to reflect its stronger-than-expected pipeline.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

CSPC Pharmaceutical Group - Zhejiang Monitoring List poses limited impact on NBP capsule, BUY on weakness.

The Zhejiang Drug Monitoring List will have little impact on CSPC as its market penetration effort will continue to support the robust revenue growth of NBP. Moreover, CSPC sees future GPOs offering great market expansion opportunities, and expects Clopidogrel to bring in sales revenue of Rmb500m in 2020. Its focus on innovation and R&D is gradually bearing fruit. We forecast revenue and earnings to grow at a 20.0% and 17.5% CAGR in 2019-21 respectively. BUY on weakness. Target: HK$18.80.

UOB
Carol Dou Xiao Qin ...
  • Julia Pan Mengyao
  • Michael Cheung Ho Bun
  • Oscar Jiang

Greater China Daily: Monday, October 14, 2019

KEY HIGHLIGHTS Update CSPC Pharmaceutical Group (1093 HK/BUY/HK$16.02/Target: HK$18.80) Zhejiang Monitoring List poses limited impact on NBP capsule, BUY on weakness. NetEase (NTES US/HOLD/US$258.96/Target: US$269.52) Kaola spin-off and Youdao IPO; attention back on game and cloud music. Downgrade to HOLD.

1 director bought

A director at Cspc Pharmaceutical Group bought 2,000,000 shares at 15.600HKD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. Th...

UOB
Greater China Research Team

Strategy - Alpha Picks: Greater China October Conviction List

As we continue to expect market volatility, we maintain exposure to names that have resilient earnings or are expected to enjoy an earnings growth recovery, such as Ausnutria Dairy (1717 HK), CSPC (1093 HK) and Dongfeng Motor (489 HK), and add PICC P&C (2328 HK) to our BUY list.

UOB
Carol Dou Xiao Qin ...
  • Charles Wong Kok Min
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Julia Pan Mengyao
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Oscar Jiang
  • Robin Yuen

Greater China Daily: Tuesday, August 20, 2019

KEY HIGHLIGHTS CHINA Results CSPC Pharmaceutical Group (1093HK/BUY/HK$12.96/Target: HK$17.00) 1H19: Earnings grew strongly by 24.8% yoy; easing policy pressure. Inspur International (596 HK/BUY/HK$3.77/Target: HK$5.25) 1H19: Core profit in line; resilient growth from cloud service business. Minsheng Education (1569 HK/BUY/HK$1.35/Target: HK$2.00) 1H19: Results in line with expectations; one school consolidated, three more to go. Tongcheng-eLong (780 HK/BUY/HK$12.32/Target: HK$20.00) 2Q19: Strong GMV growth, bottom line beat on better operating efficiency. HONG KONG Update Ausnutria D...

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Katrina Chen Chucan
  • Michael Cheung Ho Bun
  • Zhifeng Shen

Greater China Daily: Thursday, July 25, 2019

KEY HIGHLIGHTS CHINA Sector Gas Sector reform underway. Update CSPC Pharmaceutical Group (1093 HK/BUY/HK$13.34/Target: HK$16.00) Steady earnings growth and easing policy pressure; upgrade to BUY. TRADERS’ CORNER China Literature (772 HK): Trading Buy Range Cathay Pacific (293 HK): Trading Sell Range

UOB
Carol Dou Xiao Qin ...
  • Charles Wong Kok Min
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • K Ajith
  • Neo Chen Wentao
  • Sandra Huang Jieqiong

Greater China Daily: Wednesday, May, 22, 2019

KEY HIGHLIGHTS CHINA Sector Steel A challenging year; downgrade to UNDERWEIGHT. Results CSPC Pharmaceutical Group (1093 HK/HOLD/HK$13.84/Target: HK$15.00) 1Q19: Earnings up 28.8% yoy, enhances strengths amid policy uncertainties. Sino Biopharmaceutical (1177 HK/BUY/HK$7.66/Target: HK$9.50) 1Q19: Core earnings up 24.7% yoy; constantly rolling out new products to fuel growth. HONG KONG Update Cathay Pacific (293 HK/HOLD/HK$11.96/Target: HK$12.70) Dim outlook for cargo traffic drags valuation; downgrade to HOLD. TRADERS’ CORNER Sunlight REIT (435 HK): Trading Buy Range 3SBIO (1530 H...

UOB
Carol Dou Xiao Qin ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Neo Chen Wentao
  • Nick Liu Sunliang
  • Sandra Huang Jieqiong

Greater China Daily: Tuesday, March, 19, 2019

KEY HIGHLIGHTS CHINA Sector Property Weekly: Turnover continues to go up in tier-1 and tier-2 cities. Results China Coal Energy (1898 HK/HOLD/HK$3.40/Target: HK$3.20) 2018: Results below expectations; coal production ramps up while prices under pressure in 2019. China Traditional Chinese Medicine Holdings (570 HK/HOLD/HK$4.93/Target: HK$5.50) 2018: Results in line, improvement of operating efficiency remains a key task. CSPC Pharmaceutical Group (1093 HK/HOLD/HK$13.96/Target: HK$13.81) 2018: Net profit rises 31.9% yoy, in line; taking action to ensure success of major products. Upgrade...

An increasingly favourable environment allows CSPC PHARMACEUTICAL GLD. to improve to Neutral

The independent financial analyst theScreener just upgraded the general evaluation of CSPC PHARMACEUTICAL GLD. (HK), a company active in the Pharmaceuticals industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date July 19, 2019, the closing price was HKD 13.28 and its expected value was estimated at HKD 12.99.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

UOB
Carol Dou Xiao Qin ...
  • Julia Cheung Pui Man

Healthcare - 25-province GPO results positive for CSPC, but negative for Sino Biopharm.

With the completion of the 25-province GPO, we revised our model accordingly and conducted a more detailed wrap-up of the affected drug sales of CSPC and Sino Biopharm. The findings are mixed  positive for CSPC but negative for Sino Biopharm. Moving forward, we still see considerable price pressure on other generics. Innovation is the way to sustainable earnings growth in the long term. Maintain MARKET WEIGHT.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - 25-province GPO lowers tender prices further; pressure remains on other generics.

The 25-province GPO cut tender prices of related drugs further by an average of 29%. The tender results are largely in line with our estimates. Given intense price competition, winners are obtaining market share but are seeing thinner profit margins. We expect to see substantial price pressure on other generics in future GPOs. In the midst of a rapidly-evolving pharmaceutical industry, innovation is the way to sustainable growth. Maintain MARKET WEIGHT.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - 25-province GPO will push relevant drug prices lower, mixed effect on companies.

competition for drugs with three or more BE qualifiers, but more reasonable competition for drugs with two or less BEs. Also, an Indian firm may join GPO biddings for the first time and this could introduce a new price floor and brings a long-term threat to domestic generic drugs. Thus, we prefer companies with strong innovation capacity and pipelines. Maintain MARKET WEIGHT.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - 11-city GPO expands nationwide, mixed impact on companies.

The newly-announced 25-province GPO policy extends the 11-city GPO procurement nationwide, with significant expansion in procurement volume but bringing a mixed impact for companies. Companies reported satisfactory 1H19 results. Easing price pressure and a clearer policy direction will support steady earnings growth in the years ahead. Maintain MARKET WEIGHT.

UOB
Carol Dou Xiao Qin ...
  • Michael Cheung Ho Bun

Healthcare - Clearer regulatory directions benefit innovative drug development.

The NHSA has released the 2019 NRDL with 148 additions and 150 removals. 128 exclusive drugs will undergo negotiations in the coming months for entering the NRDL. The new NRDL policy is largely in line with our estimate with an expected impact. Given the clearer regulatory direction, we believe most of the policy shocks have been factored in. With the changing policy environment, companies are focusing on innovation, which may bring about a stronger healthcare sector in the next few years. Upgrade the healthcare sector to MARKET WEIGHT.

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