BOCOM INTL: SINO BIOPHARM (01177) is expected to maintain double-digit performance in the next two years. We maintain a "buy" rating.

BOCOM INTL released a research report stating that based on the latest forecasts for SINO BIOPHARM (01177) product sales and revenue from licensing and cooperation agreements, and the profit margin improvement brought by cost reduction and revenue structure optimization, BOCOM INTL has adjusted the group's net profit forecast for 2025 to 2027 to a decrease of 6%, an increase of 9%, and a decrease of 2%, lowering the DCF target price to 8.5 Hong Kong dollars, corresponding to a 42 times P/E ratio in 2026 and a 1.3 times PEG ratio (based on core net profit forecast), maintaining a "buy" rating. BOCOM INTL pointed out that SINO BIOPHARM is expected to maintain double-digit growth in performance in 2026 to 2027, benefiting from existing blockbuster drugs and multiple new products contributing to incremental revenue, controllable procurement risk exposure, and the normalized potential of BD revenue. BOCOM INTL believes that with a forward-looking vision and ample financial reserves, China Biopharmaceutical is rapidly transitioning its growth path from pipeline expansion to the layout of next-generation technology platforms, from introduction to introduction + overseas expansion, and the embryonic form of global MNC pharmaceutical companies is beginning to emerge.