China's Livzon Pharmaceutical Q3 operating income falls 18%

Overview

• China pharma maker's Q3 operating income fell 18% yr/yr, net profit dropped 25%

• Company's nine-month operating income declined nearly 20%, net profit down over 26%

Outlook

• Company did not provide specific guidance or outlook for future quarters in its press release

Result Drivers

• Selling expenses and R&D expenses fell to RMB1.69 bln and RMB564.0 mln, partly offsetting the revenue decline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Livzon Pharmaceutical Group Inc is CNY32.40, about 20.1% above its October 23 closing price of CNY26.97

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 20 - Medical products distributor Sinopharm Group's prelim 9-month revenue slips

• Oct 22 - China's Asymchem Q3 revenue, net profit rise on macromolecules strength

• Oct 22 - France's Sartorius Stedim Biotech 9-month revenue up 6.5%

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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.)