CSPC Pharma 1093

Re: CSPC Pharma 1093

Postby winston » Tue Apr 11, 2017 11:25 am

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CSPC: Best Chinese Pharmaceutical Stock?

By Isabella Zhong

Shares of CSPC Pharmaceutical Group (1093.HK) have rallied 35% over the past year but there could room for further upside.

Jefferies analyst Eugene Huang initiated coverage of the Hong Kong-based drug maker today with a buy rating and a HKD13 a share target price, which implies 31% upside.

CSPC is one of the first Chinese pharma leaders to transform from an API producer to a new drug innovator, and is well placed to reap the benefits.

Our Buy rating is based on strong EPS growth visibility led by NBP, oncology drugs, Vitamin C, and potential blockbusters like rE4 from 18/19.

We find CSPC well positioned with multiple policy benefits and an R&D pipeline to support long-term growth. We estimate 29% CAGR EPS growth in 16-19E with HK$13 target price.

Huang is the most bullish among analysts who cover CSPC although the stock is well-loved with an average buy rating.

Sales of CSPC’s oncology – or cancer – drugs grew 22% last year.

Huang expects the pace to pick up to an average 57% annually between 2017 and 2019 after drugs Jinyouli (PEG-rHG-CSF) and Nuolining (imatinib) were added to China’s national reimbursement drug list (NDRL) – a list of government-subsidized medications – earlier this year.

CSPC’s innovative NBP (butylphthalide) drug, which is used for treating acute ischemic strokes, is expected to continue to grow strongly.

Vitamin C has been a drag in CSPC’s earnings in recent years but the market is poised to recover on easing competition, tougher environmental restrictions in Hebei and improving exports.

CSPC is also set to deliver strong long-term growth given its impressive R&D pipeline, argues Huang.

CSPC has an extensive R&D pipeline with over 170 candidates, including 15 Class 1 drugs. Moreover, CSPC is also tapping into mAb research in the US.

We expect potential blockbuster drugs like albumin-bound paclitaxel and rE4 (GLP-1) to be launched in 18/19. We estimate new drugs to contribute HK$150m/300m sales in 18/19E.

CSPC shares are up 0.5% this morning against a 0.85% fall by the Hang Seng Index. The stock trades at 21 times forward earnings, which is in line with its five-year average.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... cal-stock/
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Re: CSPC Pharma 1093

Postby winston » Mon May 29, 2017 6:00 pm

CSPC Pharmaceutical: A Buying Opportunity

By Adam Routh

A recent pullback in the shares of Hong Kong listed CSPC Pharmaceutical (1093.HK) could be a good buying opportunity, according to Jefferies.

The broker believes the weakness in the drug maker's share price since the end of last week is due to some profit taking. CSPC's share price has surged 19% since April 10 compared to the 6% gain by the Hang Seng Index.

In a note to clients analyst Eugene Huang addressed several analyst concerns and reiterated the broker's Top Buy rating on CSPC with a price target of HKD13 a share, implying 16% upside.

Here's what Jefferies had to say about key Street concerns:

(1) Rise of R&D cost: Priced in. Mgmt guides HK$500-530m R&D cost in FY17 (HK$530m in JEFest.). This should be well compensated by API's cash flow.

(2) Tendering price cut: Opposite view. We see CSPC as one of the few "tendering hedges", with limited price cut but substantial volume upside due to its defensive drug portfolio (which has been proved by strong oncology sales in 1Q17). We expect CSPC to benefit from
tendering acceleration from this year.

(3) "Rich" valuation: CSPC trades at 19x 18 PE, 20%/12% discount to SBP/3SBio respectively. And we expect earnings upside surprise from its ANDA pipeline as well as its caffeine and common generics segment (details see below).

(4) Filing of NBP's competing drugs: Not worth worrying till 2023 when patent expires.

(5) "Slowing down" of finished drug sales: 1Q17 finished drug sales recorded 21% YoY or 9% QoQ growth, both the best in the past two years. We expect this momentum to continue in the next three years with tendering acceleration and NRDL (national reimbursement drug list) benefit.

Despite rallying since April, Jefferies believes there are several catalysts not yet priced in including its R&D pipeline and its caffeine and generic drug segments:

R&D pipeline:

a) The faster-than-expected launch of ANDA drugs (7 approved, 6 pending approval, 16 under pre-cli/cli trials): Especially, Clopidogrel: Rmb8.7bn market with only three peer drugs in 2016. This drug should contribute roughly HK$150m/500m/1bn sales in the 1st/2nd/3rd year after launch, Mgmt guides Clopidogrel to be approved by end-17;

b) high-value generics: albumin-bound paclitaxel to be launched in 2H17 and bortezomib in 1H18 – Both a) and b) have not been included in our/street forecasts. Mgmt has not provided guidance but this should provide upside surprise. (In contrast, Anlotinib from SBP and YSP from 3SBio have mostly been priced in current valuation.)

Caffeine and common generics: In our view, these segments should start with substantially higher growth, as CSPC has announced the proposal of A-share listing in late April this year for caffeine and VC-related products under common generics.This should give mgmt strong incentive to deliver better performance.

Meanwhile sales of NBP drugs (butylphthalide soft capsules and injections) grew 39% year-on-year in the first quarter. Huang says NBP injection is in the early stage of its product cycle and can benefit from new NRDL inclusion, tendering acceleration and market share gain. Huang also expects the sales of CSPC’s oncology – or cancer – drugs to pick up.

Shares in CSPC are up 58% over the past 12 months.

Source: Barron's Asia

http://www.barrons.com/articles/cspc-ph ... 1496035113
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Re: CSPC Pharma 1093

Postby winston » Mon May 29, 2017 6:00 pm

CSPC Pharmaceutical: A Buying Opportunity

By Adam Routh

A recent pullback in the shares of Hong Kong listed CSPC Pharmaceutical (1093.HK) could be a good buying opportunity, according to Jefferies.

The broker believes the weakness in the drug maker's share price since the end of last week is due to some profit taking. CSPC's share price has surged 19% since April 10 compared to the 6% gain by the Hang Seng Index.

In a note to clients analyst Eugene Huang addressed several analyst concerns and reiterated the broker's Top Buy rating on CSPC with a price target of HKD13 a share, implying 16% upside.

Here's what Jefferies had to say about key Street concerns:

(1) Rise of R&D cost: Priced in. Mgmt guides HK$500-530m R&D cost in FY17 (HK$530m in JEFest.). This should be well compensated by API's cash flow.

(2) Tendering price cut: Opposite view. We see CSPC as one of the few "tendering hedges", with limited price cut but substantial volume upside due to its defensive drug portfolio (which has been proved by strong oncology sales in 1Q17). We expect CSPC to benefit from
tendering acceleration from this year.

(3) "Rich" valuation: CSPC trades at 19x 18 PE, 20%/12% discount to SBP/3SBio respectively. And we expect earnings upside surprise from its ANDA pipeline as well as its caffeine and common generics segment (details see below).

(4) Filing of NBP's competing drugs: Not worth worrying till 2023 when patent expires.

(5) "Slowing down" of finished drug sales: 1Q17 finished drug sales recorded 21% YoY or 9% QoQ growth, both the best in the past two years. We expect this momentum to continue in the next three years with tendering acceleration and NRDL (national reimbursement drug list) benefit.

Despite rallying since April, Jefferies believes there are several catalysts not yet priced in including its R&D pipeline and its caffeine and generic drug segments:

R&D pipeline:

a) The faster-than-expected launch of ANDA drugs (7 approved, 6 pending approval, 16 under pre-cli/cli trials): Especially, Clopidogrel: Rmb8.7bn market with only three peer drugs in 2016. This drug should contribute roughly HK$150m/500m/1bn sales in the 1st/2nd/3rd year after launch, Mgmt guides Clopidogrel to be approved by end-17;

b) high-value generics: albumin-bound paclitaxel to be launched in 2H17 and bortezomib in 1H18 – Both a) and b) have not been included in our/street forecasts. Mgmt has not provided guidance but this should provide upside surprise. (In contrast, Anlotinib from SBP and YSP from 3SBio have mostly been priced in current valuation.)

Caffeine and common generics: In our view, these segments should start with substantially higher growth, as CSPC has announced the proposal of A-share listing in late April this year for caffeine and VC-related products under common generics.This should give mgmt strong incentive to deliver better performance.

Meanwhile sales of NBP drugs (butylphthalide soft capsules and injections) grew 39% year-on-year in the first quarter. Huang says NBP injection is in the early stage of its product cycle and can benefit from new NRDL inclusion, tendering acceleration and market share gain. Huang also expects the sales of CSPC’s oncology – or cancer – drugs to pick up.

Shares in CSPC are up 58% over the past 12 months.

Source: Barron's Asia

http://www.barrons.com/articles/cspc-ph ... 1496035113
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Re: CSPC Pharma 1093

Postby winston » Thu Jul 20, 2017 10:48 am

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CSPC Pharmaceutical 石药集团 (1093 HK)

CSPC has transformed to an innovative drugs manufacturer since 2012, which is the company’s largest revenue source.

In 1Q17, the innovative drugs sales had increased by 29.6% yoy, pushing the gross margin to 57%, up from 53.5% in 4Q16.

Its innovative drugs, NBP injection, Jinyouli and Nuolinling were included in the 2017 National Reimbursement Drug List, which helps to accelerate the sales growth.

CSPC’s Vitamin C segment started to contribute profit in the last year and the price of Vitamin C is expected to rise as small manufactures failed to meet government environmental requirement.

We suggest a BUY rating with a target price of HK$13.66.

http://www.cspc.com.hk/en/global/home.php

Source: UOBKH
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Re: CSPC Pharma 1093

Postby winston » Wed Feb 21, 2018 10:41 pm

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CSPC Pharmaceutical Group 石药集团 (1093 HK)

Driven by an enhanced sales network and launch of the new NRDL, NBP injections and Jinyouli maintained resilient sales growth in 3Q17 and we expect the strong growth momentum to continue in 4Q17 and 2018.

The company will launch two blockbuster drugs in 1Q18, Albumin-bound paclitaxel and Clopidogrel.

Meanwhile, due to stringent environment regulations, the high prices of Vitamin C are likely to be maintained in 2018. We maintain a BUY with a target price of HK$20.10.

http://www.cspc.com.hk/en/global/home.php

Source: UOBKH
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Re: CSPC Pharma 1093

Postby winston » Tue Jul 31, 2018 12:37 pm

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CSPC PHARMA(1093)

Analysis:

The company reported 18Q1 topline growth of 55% and lower operating income growth of 41%, which is due to rising selling expenses and increasing R&D investment. While net profit maintains proportionated growth of 42%.

We expect the company to achieve good results in first half.

Finished drugs beat our expectations, given notable YoY growth of 58.5%.

Innovative drugs (60% in segment income) recorded 66% growth while common generic drugs reported 49% growth.

In future, the company will continue to enlarge sales team of innovative drugs, explore blank markets and strengthen academic promotion.

On generic drugs, the company targets continuously stable growth through introducing TCM products and pediatric drugs, to build branded generic drugs.

Bulk drugs. VC continues to benefit from relatively high price since last year, given Q 1 sales was up by 112% which simultaneously contributed to profitability.

Antibiotics reported moderate growth of 24% resulting from recovering price. However caffeine generated less profit attributable to rising costs.

Strategy:
Buy-in Price: $20.80, Target Price: $24.80, Cut Loss Price: $19.00

Source: Phillips
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Re: CSPC Pharma 1093

Postby winston » Tue Aug 21, 2018 7:39 am

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Generics, hypertension drugs maker CSPC Pharma posts HK$1.8b profit

CSPC Pharmaceutical Group (1093), which makes generics, chemotherapy drugs and drugs for strokes and hypertension, said today interim net profit increased by 41.1 percent year-on-year to HK$1.85 billion.

Earnings per share were 29.68 HK cents, up by 36.8 percent.

The company did not declare a payment of an interim dividend for the six months ended June 30.

Revenue was HK$10.78 billion, up [b]49.79 percent[/b] from the same period of last year.

The bulk of the company's sales are in mainland China.

Finished drugs continued to be a major growth driver, the company said.

Sales increased by 55.2 percent to HK$8.18 billion. Sales of innovative drugs, grew by 65.3 percent to HK$4.87 billion, in the first half.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 0820&sid=2
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Re: CSPC Pharma 1093

Postby winston » Tue Aug 21, 2018 9:19 am

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CSPC Pharmaceutical: Delivering on its promises; strong 2Q

CSPC Pharmaceutical Group [1093 HK] posted 2Q18 net earnings of HK$936m, 5% above consensus estimate.

The strong momentum from 1Q has continued into 2Q.

Gross profit margin showed a strong improvement from 57.3% in 1H17 to 63.9% in 1H18.

Revenue from innovative drugs now accounted for 45.2% of total group revenue versus 40.9% in 1H17.

Management is expanding its sales force and the market for its products.

The group is maintaining its R&D focus, and there are currently more than 200 new products in the pipeline.

Management is also keen to explore acquisitions.

Management also guided that earnings will likely exceed its guidance at the beginning of the year.

Recently, the China Healthcare sector was affected by negative developments which led to selling pressure for related stocks, and CSPC was similarly affected.

We are maintaining our earnings estimates, but with the massive sector de-rating, we have lowered the valuation peg to its 3-year average of 30x, and this lowers our fair value estimate from HK$28.24 to HK$21.88.

Current PEG is reasonable at 0.85.

Source: OCBC
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Re: CSPC Pharma 1093

Postby winston » Tue Nov 20, 2018 12:00 pm

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CSPC PHARMA Plummets 5.5%; 3Q Profit, Turnover Growth Eases

CSPC PHARMA (01093.HK) extended the five-day decline this morning in wake of mounted selling pressure.

It last posted at trough $16.16 on immediate market, down 5.5%, on volume of 23.67 million shares and turnover of $387 million.

Goldman Sachs, Credit Suisse and UBS, slashed their target prices on the drug maker to $27.33, $20.8 and $26.3. The 3Q net profit and turnover growth slowed amid market price plunge.

The company announced the first three quarters result ended September 2018.

The turnover rose 41.4% year on year to about $15.85 billion.

The net profit amounted to $2.734 billion, up nearly 34% yearly.

Source: AAStocks Financial News
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Re: CSPC Pharma 1093

Postby winston » Tue Nov 20, 2018 12:00 pm

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CSPC PHARMA Plummets 5.5%; 3Q Profit, Turnover Growth Eases

CSPC PHARMA (01093.HK) extended the five-day decline this morning in wake of mounted selling pressure.

It last posted at trough $16.16 on immediate market, down 5.5%, on volume of 23.67 million shares and turnover of $387 million.

Goldman Sachs, Credit Suisse and UBS, slashed their target prices on the drug maker to $27.33, $20.8 and $26.3. The 3Q net profit and turnover growth slowed amid market price plunge.

The company announced the first three quarters result ended September 2018.

The turnover rose 41.4% year on year to about $15.85 billion.

The net profit amounted to $2.734 billion, up nearly 34% yearly.

Source: AAStocks Financial News
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