Nomura: Maintains "Buy" Rating on CSPC PHARMA (01093) and Lowers Target Price to HKD 6.48

Nomura released a research report stating that it maintains a "buy" rating for CSPC PHARMA (01093) and has lowered its target price from HK$7.02 to HK$6.48. The bank has lowered its revenue and profit forecasts for CSPC Pharma for the 2024 fiscal year by 1.2% and 6.4% respectively, mainly due to weak drug sales in the first nine months of last year and $100 million in scheduled licensing revenue. In addition, the bank has raised revenue and profit forecasts for the 2025 fiscal year by 2.1% and 0.8% respectively. Nomura stated that its revenue and profit forecasts for CSPC Pharma for the 2024 fiscal year are 0.9% and 0.8% lower than the market's general expectations, and for the 2025 fiscal year, they are higher by 0.1% and 0.9%. The bank also mentioned that it understands the pressure CSPC Pharma faces in its mature business areas, but believes that the recent external licensing of early-stage assets by the company has alleviated some of that pressure.