CICC International: Raises SINO BIOPHARM (01177) target price to 6 Hong Kong dollars, maintains "outperform" rating.

CICC International released a research report stating that the target price of SINO BIOPHARM (01177) has been raised by 36.4%, from 4.4 Hong Kong dollars to 6 Hong Kong dollars, while maintaining an "Outperform" rating. The bank has increased its sales forecast for the company's fiscal year 2025 by 1.3% to reflect expected large-scale out-licensing deals, with the deal expected to include a prepayment of at least 100 million US dollars. Operating expenses for fiscal year 2025 have been lowered by 1.1% to reflect a decrease in research and development expenses, as the bank believes that research and development expenses as a proportion of sales have peaked and will gradually increase in the years to come. The bank has raised its earnings per share forecast for fiscal year 2025 by 3.9%. CICC International stated that SINO BIOPHARM is seeing more innovative candidates from its research pipeline receiving market approval, such as TQB3616 (CDK2/4/6) and QP001 (COX2). It is expected that 3-4 major products will be approved annually from 2025 to 2027, mainly for the treatment of tumors, liver diseases, and respiratory system disorders. Innovative drugs could contribute to growth. In addition, licensing deals will provide a stable source of income.