Medical products distributor Sinopharm Group's prelim 9-month revenue slips

Overview

• China pharmaceutical distributor's preliminary 9-month revenue fell 0.11% yr/yr

• Preliminary 9-month net profit attributable to shareholders down 0.48% yr/yr

Outlook

• Company will focus on new growth drivers and improving operational quality and profitability

Result Drivers

• DISTRIBUTION SEGMENT - Co said narrowing revenue decline and profit growth in distribution segment reflected operational resilience

• RETAIL SEGMENT - Co attributed retail segment profit growth to product mix optimization, store network adjustments and expense control

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Sinopharm Group Co Ltd is HK$20.80, about 35.3% above its October 20 closing price of HK$15.37

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 20 - China Mobile's nine-month profit falls 7.9% on higher costs

• Oct 19 - China's economic growth picks up as exports boom, consumers balk

• Oct 19 - China's Hansoh Pharma strikes drug deal with Roche worth over $15 billion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)