HK Stock Market Move | UNITED LAB (03933) rises over 6%, approaching previous high, the outlook for the prosperity of raw material drug prices is expected to continue to improve, Goldman Sachs has raised sales and profit forecasts.

UNITED LAB (03933) rose by more than 6%, reaching a high of 12.5 Hong Kong dollars in intraday trading, approaching its historical high of 12.62 Hong Kong dollars. As of the time of writing, it has increased by 4.94% to 12.32 Hong Kong dollars, with a trading volume of 74.6786 million Hong Kong dollars. Pacific Securities pointed out that the construction scale of the Chinese raw material pharmaceutical sector has declined for the first time in four years, the construction period of Indian raw material pharmaceutical parks has been delayed, the expansion of supply-side capacity in the industry has slowed down, and the new cycle of stock replenishment combined with the patent cliff is expected to drive demand growth, with product prices expected to continue to rise. Goldman Sachs released a research report stating that, according to Wind data, UNITED LAB's pricing for penicillin G and 6-APA has remained favorable and is at historical highs, although there has been some slight fluctuation in 6-APA prices in November. The bank expects the company's pricing trend to remain resilient in the coming seasons, as the expansion of production capacity by a major Indian pharmaceutical company is slower than expected. The bank has a more positive outlook on the price trend of UNITED LAB next year, and has raised sales and profit forecasts.