Morgan Stanley raises Stone Pharmaceutical target price to 6.8 Hong Kong dollars, adjusting earnings forecast

Jinsdata, on February 25, Morgan Stanley published a research report pointing out that due to the continued sales pressure of traditional drugs, the sales forecast of CSPC Pharmaceutical Group Limited (01093.HK) in 2024 was further reduced by 2.1%; the sales forecast in 2025 was increased by 3.5%; and the sales forecast in 2026 was increased by 2.7%. Morgan Stanley mentioned that due to CSPC's emphasis on research and development, the forecast for its research and development expenses was increased, which was partially offset by lower sales expenses. The bank adjusted the profit forecast for the fiscal years 2024 to 2026 by -14%, +10%, and -4.3% respectively. In addition, the bank lowered the capital expenditure forecast for CSPC in the coming years to 7% per year (originally 9%), and slightly raised its target price from HK$6.6 to HK$6.8, giving it an overweight rating.