Lates News

Goldman Sachs released a research report stating that Fosun Pharma's first-quarter sales were below the bank's expectations and further declined compared to the same quarter last year, mainly due to price reductions in contract renewals for centralized procurement and expansion of regional centralized procurement, leading to a year-on-year drop in pharmaceutical sales of about 10%. Although the growth in sales of new drugs partially mitigated the impact. The medical device business was driven by a 23% increase in sales of ventilators, but faced pressure in the weak consumption environment for medical beauty equipment and diagnostic reagents. The service business decreased by 2% year-on-year due to the termination of some online businesses, but achieved growth in offline businesses as the rehabilitation business expanded. The bank's outlook for the company's revenue this year is relatively conservative, expecting a 4% annual decline. Considering the lack of product cycle highlights, lack of significant growth drivers, and potential pressure from centralized procurement of biosimilars, profitability may depend on divestment of assets. The bank lowered its profit forecast for the company this year by 8.9%, and by 0.4% and 0.9% for next year and the following year. The target price was lowered from HK$17.27 to HK$16.38, maintaining a "neutral" rating.