CMBC International: Maintains the "buy" rating for China Resources Pharmaceutical Group (01177), lowers the target price to 8.7 Hong Kong dollars.

China Merchants Securities International released a research report stating that it maintains a "buy" rating on China Resources Pharmaceutical (01177). Based on DCF, the target price of the group has been lowered from 9.4 Hong Kong dollars to 8.7 Hong Kong dollars to reflect the expected decline in non-BD revenue. China Resources Pharmaceutical announced its performance for 2025, with revenue increasing by 10.3% to 31.83 billion yuan. Among them, revenue from innovative products increased by 26.2% to 1.52 billion yuan, accounting for 47.8% of total revenue. Adjusted net profit attributable to shareholders increased by 31.4% to 4.54 billion yuan, and even excluding the dividend from Sino Biopharm, adjusted net profit increased by 15% year-on-year. With steady growth in revenue from generic drugs and continued strong sales of innovative drugs, the bank believes that the company's performance will continue to grow steadily this year. The bank expects the company's revenue to increase by 13.5%, 7.1%, and 9.2% respectively from 2026 to 2028 (non-BD revenue: 10.5%, 10%, 9.2%), and adjusted net profit attributable to shareholders to increase by 5.4%, 8.3%, and 10.5% year-on-year.