GF Securities: Initiates "Buy" Rating on Sihuan Pharmaceutical (00460.HK), Fair Value HK$1.11 per Share

Zhito Finance APP has learned that GF Securities issued a research report, initiating coverage on Sihuan Pharmaceutical (00460.HK) with a "Buy" rating. The bank expects the company to achieve revenue of RMB 2.95/3.91/4.91 billion in 2026-2028, and net profit attributable to parent of RMB 600/860/1.12 billion. With reference to comparable peers, it assigns the company a 2026 PE valuation of 15x, corresponding to a fair value of HKD 1.11 per share, with a reference exchange rate of HKD 1 to RMB 0.86. The company is accelerating the divestiture of non-core assets, and the reduction of losses from innovative drugs and the realization of profits from medical aesthetics further improve the quality of its financial statements. It currently has a rich pipeline reserve and strong medium- to long-term growth potential.