DAHUAXIJIAN: Lowered target price of CSPC PHARMA (01093) to 6 Hong Kong dollars, rating downgraded to "Sell"

Dahua Jixian released a research report stating that CSPC PHARMA (01093) significantly underperformed the bank's and market's expectations in the first quarter, and has reduced the target price from 8.8 Hong Kong dollars to 6 Hong Kong dollars, downgrading the rating to "Sell" to reflect significant policy risks. The bank stated that CSPC is committed to achieving positive growth in product sales and expects licensing fee income to drive profit margin increases starting in 2026. However, the bank is concerned about stricter anti-corruption regulations and new sales and marketing rules, which may make the outlook for drug sales growth unclear.