HK Stock Market Move | Sinopharm (01099) fell nearly 5%. Last year, net profit increased by 1.5% year-on-year. Citigroup slightly lowered the company's target price.

Sinopharm (01099) fell nearly 5%, dropping 4.8% to HK$19.44 as of the time of drafting, with a turnover of HK$56.2142 million. On the news front, Sinopharm released its 2025 annual performance. The group achieved revenue of RMB 575.168 billion, a decrease of 1.6% year-on-year. Net profit attributable to owners of the parent company increased by 1.5% to RMB 7.155 billion, with earnings per share of RMB 2.29. It is proposed to distribute a final dividend of RMB 0.69 per share. During the reporting period, the three major business segments continued to show differentiated development trends. The revenue contribution of the pharmaceutical distribution segment reached 72.79%, a decrease of 0.37 percentage points year-on-year; the revenue contribution of the medical device distribution segment reached 19.32%, a slight decrease of 0.09 percentage points year-on-year; the revenue contribution of the pharmaceutical retail segment reached 6.42%, an increase of 0.50 percentage points year-on-year. Citi released a research report stating that Sinopharm's management expected sales of pharmaceutical distribution business to remain flat year-on-year, while medical device distribution and retail business are expected to further recover and record positive growth. Citi lowered its revenue forecast for Sinopharm for the next two years by 3% and 4% to reflect the latest guidance from management, and accordingly lowered the earnings per share forecast by 5% and 5%. The target price was revised down from HK$23 to HK$22.8, with a maintained "Buy" rating.