Goldman Sachs: Reduces target price of Hebei Construction Group (01066.HK) to 7.4 Hong Kong dollars, expects purchasing order pressure to continue.

According to the Wisdom Finance APP, Goldman Sachs released a research report stating that Weigao Group (01066.HK) had third-quarter revenue of 3.26 billion RMB, a year-on-year increase of 2.6%, which is consistent with the first half of the year. The pharmaceutical packaging and general medical consumables business continued to be under pressure, as sales growth was insufficient to offset the pricing pressure from Volume-based Purchasing (VBP), especially in the flushing syringe business, and the progress of products during surgery was slower than expected in the weak macro environment. On the contrary, revenue growth in the orthopedics, interventional therapy, and blood management businesses was relatively strong. Considering the continued pricing pressure, the bank has lowered its revenue and net profit forecasts for 2025 by 4.4% and 8.5% respectively. It is now expected that full-year revenue will increase by 1.9% year-on-year, while profits will decline by 7.8% year-on-year. The target price has been lowered from 7.8 Hong Kong dollars to 7.4 Hong Kong dollars, and the "buy" rating is maintained.