Goldman Sachs raises Shanghai Pharmaceuticals Holding's target price to HKD 10.63 and maintains a "sell" rating.

Goldman Sachs released a research report stating that the net profit forecast of Shanghai Pharmaceuticals Holding (02607) for the years 2026 to 2028 was revised upward by 5%, 3%, and 3.6% respectively. The rating is maintained as "sell", with a target price raised from 10.3 Hong Kong dollars to 10.63 Hong Kong dollars. The bank believes that under the normalization of generic drugs and the volume-based procurement (VBP) policy, the company's profit margin will face greater pressure. In the first quarter, Shanghai Pharmaceuticals Holding's revenue increased by 6.4% year-on-year to 75.3 billion yuan, which is in line with the expectations of the bank and the market. Profit increased by 6.4% year-on-year to 1.4 billion yuan, in line with the bank's expectations; gross margin slightly expanded from 10% to 10.4% compared to the same period last year.