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The analyst rating for CSPC PHARMA was updated to "Overweight" by Morgan Stanley due to a revision in the company's sales forecasts for 2025-26, which were cut by 1% and 2%, respectively. Despite these reductions, the 2027 sales forecast remained unchanged. Additionally, estimates for recurring net profit were lowered by 4% for 2025-26, while the 2027 estimate stayed the same. The target price was also decreased from HKD11 to HKD10.4, reflecting the adjustments made based on the company's 3Q25 results and management guidance.

The analyst rating from CLSA reflects a cautious yet optimistic outlook on China's biotechnology and innovative drug industry. The reasons for the ratings include: 1. Market Volatility and Overvaluation: The industry has faced volatility due to overvaluation from previous price hikes and uncertainty regarding national medical insurance drug pricing. 2. Attractive Valuations: Despite the volatility, CLSA notes that valuations of quality companies are becoming attractive, suggesting potential for investment. 3. Ongoing Business Expansion: There are ongoing business expansion activities, which could lead to future growth opportunities. 4. Limited Downside Risk: CLSA believes that further downside price risk seems limited, indicating a more stable outlook moving forward. 5. Healthy Consolidation: The current pullback in stock prices is viewed as a healthy consolidation phase, providing attractive opportunities for investment in the coming year. 6. Specific Company Insights: For CSPC PHARMA, despite delays in business expansion affecting investor confidence, CLSA sees this as creating more attractive buying opportunities. For SINOPHARM, improvements in accounts receivable and the initiation of China's 15th Five-Year Plan are expected to support recovery in earnings momentum. Overall, the ratings reflect a belief in the potential for recovery and growth in the sector, despite current challenges.

The analyst rating for CSPC PHARMA was downgraded from Hold to Sell by Daiwa due to the stock price already reflecting the company's business development. Additionally, the analyst estimates that finished drug sales will slow down and has consequently reduced its revenue forecasts for 2025-2027.

The analyst rating from UBS reflects a cautious optimism about the long-term potential of China's healthcare market, despite the recent surge in the pharmaceutical sector driven by out-licensing agreements. The downgrade of CSPC PHARMA and KELUN PHARM to Neutral is attributed to weak fundamentals, while the shift in top picks from 3SBIO to HANSOH PHARMA is based on HANSOH's stable traditional business and innovative pipeline reserves. UBS believes that HENGRUI PHARMA and HANSOH PHARMA are well-positioned for long-term pipeline potential, indicating a focus on organic revenue and profit growth amidst concerns over rich valuations and potential US executive orders.

The analyst rating for CSPC PHARMA from BOCOMI is Neutral, primarily because the company's valuation is considered reasonable. Additionally, the expectations and risks associated with its potential positive catalysts have already been largely reflected in the stock price. Despite facing pressures from collective procurement and cost control measures, there is optimism about the company's performance recovery in the latter half of 2025 through 2027, supported by factors such as upfront payments from major business development deals and a rebound in its active pharmaceutical ingredients and functional food business.