CSPC Pharma 1093

[winston]

not vested

CSPC Pharmaceutical Group (1093 HK) - 9M20 results above expectations

CSPC is a vertically integrated pharmaceutical company in China with a diversified portfolio focusing on cardiovascular diseases and oncology, and a strong research & development (R&D) pipeline to support a future stream of new drug additions.

Major product brands include NBP, Duomeisu, Jinyouli and Keaili.

For bulk drugs, key products include Vitamin C, caffeine and antibiotics.

Over the medium term, we expect organic earnings growth to be supported by the company’s focus on R&D and positive shifts in sales mix.

Following deals done in 2018 involving mostly early stage drug candidates, management is open to licensing deals to enhance its portfolio and aims to license new late-stage drugs near to commercial stage.

Balance sheet is solid, in net cash position.

Potential share price volatility may result from policy uncertainties due to ongoing sector reforms (one of its key products NBP, ~24% of 1Q20’s revenues, may face pricing pressure in the next round of reimbursement negotiations). BUY.

Source: OCBC

[winston]

not vested

CSPC Pharmaceutical (1093 HK) - Overhang eased

CSPC is a vertically integrated pharmaceutical company in China, with a diversified portfolio focusing on cardiovascular diseases and oncology, and a strong research & development (R&D) pipeline to support a future stream of new drug additions.

Major product brands include NBP, Duomeisu, Jinyouli and Keaili.

For bulk drugs, key products include Vitamin C, caffeine and antibiotics.

Over the medium term, we expect organic earnings growth to be supported by the company’s focus on R&D and positive shifts in sales mix.

Following deals done in 2018 involving mostly early stage drug candidates, management is open to licensing deals to enhance its portfolio and aims to license new late-stage drugs near to commercial stage.

Balance sheet is in net cash position. Potential share price volatility may result from concerns over pricing pressure due to ongoing sector reforms. BUY.

Source: OCBC

[winston]

not vested

CSPC Pharmaceutical Group (1093 HK) - 1Q beat

CSPC is a vertically integrated pharmaceutical company in China with a diversified portfolio focusing on cardiovascular diseases and oncology, strong sales team of ~10k sales people in China and a solid research & development (R&D) pipeline to support a future stream of new drug additions.

Major product brands include NBP, Duomeisu, Jinyouli and Keaili.

For bulk drugs, key products include Vitamin C, caffeine and antibiotics.

Over the medium term, we expect organic earnings growth to be supported by the company’s focus on R&D and positive shifts in sales mix as it builds up its innovative drugs pipeline.

Following deals done in 2018 involving mostly early stage drug candidates, management is open to licensing deals to enhance its portfolio and aims to license new late-stage drugs near to commercial stage.

Balance sheet is in net cash position. Potential share price volatility may result from concerns over pricing pressure due to ongoing sector reforms. BUY.

Source: OCBC