Morgan Stanley: Maintains "overweight" rating on SINO BIOPHARM (01177), raises target price to HK$4.6

Morgan Stanley released a research report stating that it maintains a "hold" rating on SINO BIOPHARM (01177) with a target price raised from 4.5 Hong Kong dollars to 4.6 Hong Kong dollars. The bank raised its net profit forecast for the company by 11%, mainly due to the dividend income from Sinovac Biotech of approximately 700 million RMB. Due to a slight increase in sales cost forecast, net profit for 2025-2026 is expected to increase by 0.5% each year. Morgan Stanley's forecast for the company's revenue in 2024 has decreased by 1.2%, mainly due to weak sales of the drug Ganmei under stricter medical insurance restrictions. Taking into account the sales of Pertuzumab biosimilar drug (approved in December 2024) and a higher assumption for CDK2/4/6 (expected to be approved in 2025), the revenue for 2024-2025 is expected to increase by 2.2% and 3.7% respectively.