Goldman Sachs: lowers WEIGAO GROUP (01066) target price to 7.4 Hong Kong dollars, expecting continued pricing pressure due to the volume procurement order.

Goldman Sachs released a research report stating that WEIGAO GROUP (01066) had a third-quarter revenue of 3.26 billion RMB, a year-on-year increase of 2.6%, which was the same as the first half of the year. The pharmaceutical packaging and general medical consumables business continued to be under pressure, as sales growth was not enough to offset the pricing pressure brought by volume-based procurement (VBP), especially in the syringe rinsing business, and the progress of products during surgery was slower than expected in a weak macro environment. On the other hand, revenue growth in the orthopedics, interventional therapy, and blood management businesses was relatively strong. Considering the continued pricing pressure, the bank has lowered its revenue and net profit forecast for 2025 by 4.4% and 8.5%, respectively. It is now predicted that annual revenue will increase by 1.9% year-on-year, while profit will decrease by 7.8% year-on-year. The target price has been reduced from 7.8 Hong Kong dollars to 7.4 Hong Kong dollars, and the "buy" rating is maintained.