Current State of the Chinese Pharmaceutical Industry: HSBC Global Research reports that the Chinese pharmaceutical industry lacks short-term catalysts for growth, with a weakening recovery in the domestic market and ongoing policy uncertainties.
Impact on Earnings Growth: Companies are struggling to offset slowing earnings growth, relying on operational efficiency improvements, while facing challenges from delayed domestic consumption recovery and volume-based procurement policies.
Stock Ratings and Price Adjustments: HSBC maintains a Hold rating for SH PHARMA and SINOPHARM, with SH PHARMA's target price reduced from HKD12.1 to HKD11.8, and SINOPHARM's increased from HKD18 to HKD19.5.
Short Selling Trends: The report highlights significant short selling activity in both companies, indicating market skepticism about their short-term performance, with SH PHARMA and SINOPHARM experiencing short selling ratios of 6.344% and 14.540%, respectively.
Wall Street analysts forecast 01099 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01099 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 01099 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01099 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 20.560
Low
Averages
High
Current: 20.560
Low
Averages
High
HSBC Global Research
HSBC Global Research
Hold
maintain
Al Analysis
2025-11-11
Reason
HSBC Global Research
HSBC Global Research
Price Target
Al Analysis
2025-11-11
maintain
Hold
Reason
The analyst rating from HSBC Global Research is a Hold for both SH PHARMA and SINOPHARM due to several factors:
1. Lack of Short-Term Catalysts: The commercialization of the Chinese pharmaceutical industry is currently lacking immediate drivers for growth.
2. Weakening Recovery Pace: The recovery of the domestic market is slowing down, which raises concerns about future performance.
3. Policy Uncertainties: Ongoing uncertainties in policies are hindering industry growth, creating an unstable environment for companies.
4. Earnings Growth Pressure: Companies are facing pressure from slowing earnings growth, which they can only partially mitigate through improved operational efficiency.
5. Sector Challenges: Anticipated delays in domestic consumption recovery, the impact of volume-based procurement policies, and tightened medical insurance payments are expected to suppress the sector's short-term upside potential.
These factors led to a cautious outlook, resulting in the Hold rating for both companies.
Morgan Stanley
Morgan Stanley
initiated
$22.5
2025-10-22
Reason
Morgan Stanley
Morgan Stanley
Price Target
$22.5
2025-10-22
initiated
Reason
Morgan Stanley's analyst rating for SINOPHARM (01099.HK) is based on the positive performance of its subsidiaries, particularly the announcement of their 3Q25 results, which showed a quarter-over-quarter turnaround. The report noted that CHINA NATIONAL MEDICINE, a key distributor for SINOPHARM, experienced a 4% increase in revenue and a 13% increase in profit year-over-year, indicating a positive trend that is expected to benefit the overall group. This positive outlook led to an Overweight rating and a target price of HKD22.5, with a 70-80% chance of the stock rising in the next 30 days.
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BofA Securities
BofA Securities
Buy
maintain
$23
2025-08-26
Reason
BofA Securities
BofA Securities
Price Target
$23
2025-08-26
maintain
Buy
Reason
The analyst rating for SINOPHARM (01099.HK) is maintained as "Buy" by BofA Securities, despite a decline in total revenue and net profit. The rationale behind this rating includes the adjustment of revenue forecasts due to the impact of volume-based procurement (VBP) expansion on the pharmaceutical and medical devices business. Although revenue forecasts for 2025-2027 were lowered by 1.6-1.7% and profit forecasts by 3.1%/2.9%/2.8%, BofA Securities increased its target price from $22.2 to $23, indicating a positive outlook for the stock.
Citi Research
Buy
downgrade
2025-08-26
Reason
Citi Research
Price Target
2025-08-26
downgrade
Buy
Reason
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
