Goldman Sachs: CHINARES PHARMA (03320) Rated "Neutral" with Target Price Lowered to HK$6.11

Goldman Sachs released a research report stating that the target price for CHINARES PHARMA (03320) has been lowered by 1.6%, from HK$6.21 to HK$6.11, with a rating of "neutral". Goldman Sachs slightly lowered profit forecasts for the company in 2024, 2025, and 2026 by 1.2%, 1.8%, and 2.3%, respectively, reflecting the pharmaceutical business performing below expectations and slow recovery in drug distribution. The report mentioned that CHINARES PHARMA's subsidiary data showed better performance for Yanjiao compared to VBPed, with prescription drugs continuing to be weak and the distribution of drugs recovering slowly. Due to the overall weak recovery in the pharmaceutical industry, the growth forecast for the distribution business in the second half of 2024 has been cut from a year-on-year increase of 7.6% to 5.5%, also reflecting management's guidance revision, indicating that the distribution business will likely not reach the previously set double-digit growth target.