Morgan Stanley: "Overweight" rating on CSPC PHARMA (01093), raises target price to 6.8 Hong Kong dollars.

Morgan Stanley released a research report stating that it has given CSPC PHARMA (01093) a "hold" rating, with a target price slightly raised from 6.6 Hong Kong dollars to 6.8 Hong Kong dollars. The bank has lowered its capital expenditure forecast for Stone Pharmaceutical in the coming years to 7% per year (from 9% originally), with profit forecasts adjusted by -14%, +10%, and -4.3% for the fiscal years 2024 to 2026. Morgan Stanley pointed out that due to the persistent sales pressure on traditional drugs, it has decided to further lower its sales forecast for Stone Pharmaceutical in 2024 by 2.1%; increase its 2025 sales forecast by 3.5%; and increase its 2026 sales forecast by 2.7%. Additionally, due to Stone Pharmaceutical's emphasis on research and development, the bank has raised its forecast for R&D expenses, which is partially offset by lower sales expenses.