Bank of America Securities: Reiterates "Buy" rating on CHINARES PHARMA (03320) and raises target price to 5.9 Hong Kong dollars.

Bank of America Securities issued a research report stating that it has raised its net profit forecast for CHINARES PHARMA (03320) for the years 2026 to 2028 by 22%, 25%, and 25%, respectively. The target price has been raised from HK$5.7 to HK$5.9 with a reiterated "buy" rating. Due to the company's sales performance last year meeting expectations, the revenue forecast for the years 2026 to 2028 has been raised by 0.3% each, and the gross profit margin forecast for 2026 has been raised by 0.2 percentage points. However, due to long-term price pressure, the gross profit margin forecast for 2028 has been lowered by 0.2 percentage points. CHINARES PHARMA's total revenue last year increased by 4.6% year-on-year to RMB 26.96 billion, roughly in line with expectations. During the period, the gross profit was RMB 44.5 billion, a year-on-year increase of 9.4%, and the gross profit margin increased from 15.8% in 2024 to 16.5%. Net profit was RMB 4 billion, a year-on-year increase of 20.7%, exceeding the bank's forecast of RMB 3.4 billion.