CICC: Lower target price of Shiyao to HK$11 while maintaining "outperform" rating.

CICC published a research report stating that the revenue of Stone Pharmaceutical Group in the first three quarters was 19.891 billion yuan, a year-on-year decrease of 12.3%; net profit attributable to shareholders was 3.511 billion yuan, a year-on-year decrease of 7.1%; adjusted net profit was 3.079 billion yuan, a year-on-year decrease of 23%, in line with expectations. The revenue in the third quarter was 6.618 billion yuan, an increase of 3.4% year-on-year and 5.7% quarter-on-quarter, achieving a slight positive growth and stable performance. Considering the increased investment in research and development, CICC respectively lowered the group's net profit for the next two years by 12% and 15% to 4.76 billion yuan and 5.353 billion yuan; maintained an "outperform industry" rating, and lowered the target price by 15% to 11 Hong Kong dollars, corresponding to 24.4 times and 21.4 times of the P/E ratio for the next two years.