: Bank of America Securities: Initiate coverage of CHINARES PHARMA (03320) with a "buy" rating, target price of 5.9 Hong Kong dollars.

Bank of America Securities issued a research report stating that it has initiated coverage on CHINARES PHARMA (03320) with a "buy" rating and a target price of 5.9 Hong Kong dollars, which is based on valuation using cash flow discount rate, equivalent to a forecasted P/E ratio of 8.5 times for this year. The bank mentioned that it is optimistic about the performance of CHINARES PHARMA, mainly due to the company's leading position in the over-the counter (OTC) market in China; its leading market position and state-owned background benefiting from the integration of the pharmaceutical distribution industry in mainland China; a strong track record of mergers and acquisitions supporting its business expansion and long-term growth; and favorable factors such as state-owned enterprise reforms. Bank of America Securities forecasts that CHINARES PHARMA's adjusted net profits for the years 2024 to 2026 will be 4.062 billion, 4.397 billion, and 4.773 billion yuan respectively, with earnings per share forecasts for the years 2024 to 2026 at 0.646 yuan, 0.7 yuan, and 0.76 yuan respectively, representing year-on-year increases of 5.4%, 8.3%, and 8.5%.