Morgan Stanley raises CSPC PHARMA's (01093) target price to HKD 11 and maintains an "overweight" rating.

Morgan Stanley released a research report stating that after CSPC PHARMA(01093) announced its first quarter results, they maintained a positive view. The report indicated that domestic product sales seem to have finally returned to positive growth, and past business development (BD) transaction collaborations and potential new BD transactions are expected to release continuous licensing fee income. The rating was maintained as "neutral" with the target price raised from HK$10.4 to HK$11. Morgan Stanley raised Stone Pharmaceutical's 2026 earnings per share forecast by 123% to reflect the prepayments associated with the agreement with AstraZeneca, as well as prepayments that were not accounted for until 2026. However, they also pointed out that, regardless of the actual timing of cash receipts, there remains inherent uncertainty in the timing of BD revenue recognition.