HK Stock Market Move | CSPC PHARMA (01093) fell by over 4%, with an expected decrease of about 26% in net profit compared to last year. Several major banks have lowered their target price for the company.

CSPC PHARMA (01093) fell more than 4%, at the time of publication, down 4.21% to HK$4.78, with a turnover of HK$319 million. On the news front, CSPC PHARMA recently issued a profit warning, expecting the group's attributable profit for the year ending December 31, 2024 to decrease by about 26% compared to the previous year. This is mainly due to a decrease in revenue from the pharmaceutical business by about 7% year-on-year. Bank of America Securities pointed out that the company's decline in revenue and net profit was mainly due to a decrease in prices of Tianyuanli and Duomeisu in the "3+N" alliance drug centralized procurement in the Beijing-Tianjin-Hebei region, as well as Xuning not being selected in the eighth batch of national centralized procurement, resulting in a year-on-year decrease in revenue for cancer treatment and cardiovascular treatment by 28% and 15%, respectively. Nomura said, maintaining a "buy" rating for CSPC PHARMA, with the target price lowered from HK$7.02 to HK$6.48. Bank of America Securities released a research report stating that they maintain a "underperform the market" rating for CSPC PHARMA, with the target price lowered from HK$4.1 to HK$4, based on the impact of price reductions on key products. The bank adjusted its revenue forecasts for CSPC PHARMA for 2024 to 2026, ranging from a 1% decrease to a 3% increase. At the same time, they raised the net profit forecast for last year and this year by 19% and 1%, but lowered next year's net profit forecast by 12%.