Sino Biopharm 1177

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Aug 6, 2020

<Research Report>CICC Lifts SINO BIOPHARM (01177.HK) TP to $12; 1H20 Revenue May Deliver Single-Digit Growth

SINO BIOPHARM (01177.HK) is to unveil 1H20 results at end-August.

CICC expected the drugmaker to deliver a single-digit revenue growth, in line with street forecast.

CICC modeled SINO BIOPHARM's ex-right EPS at RMB0.17/ RMB0.2/ RMB0.23 for 2020-22.

The stock was kept at Outperform, with target raised by 31% to $12.

Source: AAStocks Financial News

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Sino Biopharmaceutical profit falls by 16pc to 1.2b yuan

Sino Biopharmaceutical (1177) recorded a net profit of 1.21 billion yuan (HK$1.37 billion) for the first half, down by 16 percent from a year ago.

The drugmaker declared a quarterly dividend of 2 HK cents for the second quarter this year, totaling 4 HK cents dividend for the first six months.

The basic earnings per share were 9.64 fen, down by 16 percent year-on-year.

Excluding the impact from the acquisition of 24 percent interest in Beijing Tide and other fair value changes, underlying profit grew by 5.2 percent, from a year ago to 1.76 billion yuan.

Total revenue increased by 1 percent to 12.65 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/breaking ... -1.2b-yuan

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Sino Biopharmaceutical Ltd (1177 HK) - Increasing oncology contribution

Headquartered in Hong Kong and Beijing, Sino Biopharmaceutical (中国生物制药有限公司, SBP) is a leading drug manufacturer in China with a competitive drug portfolio, strong sales force and promising pipeline.

FY19 revenue contributors by major disease areas were: hepatitis ~24%, oncology 22%, cardio-cerebral 13%, orthopaedic 8%, digestive 6%, respiratory 5% & anti-infectious 4%.

SBP is the industry leader for liver diseases drugs, a segment with annual sales revenue exceeding CNY 1bn and accounts for about a quarter of the overall sales of the liver disease market in China.

While ongoing healthcare reforms focusing on price and quality controls should weigh on margins and may continue to cause volatility in sector share prices, following Covid-19, there should be greater policy support for domestic drug innovation, which benefits pharmas (such as SBP) with strong R&D focus and growing pipelines. HOLD.

Source: OCBC

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SINO BIOPHARM (01177.HK) 1-3Q Net Profit RMB1.85B, Down 18%; QoQ Div HK2 Cents

SINO BIOPHARM (01177.HK) announced the result for the first three quarters ended September 2020.

The net profit amounted to RMB1.85 billion, down 18% yearly.

EPS was 9.81 fen.

A quarterly dividend of HK2 cents was declared.

Underlying profit was RMB2.294 billion for the period, down 11.7% annually.

Source; AAStocks Financial News

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<Research Report>M Stanley: SINO BIOPHARM (01177.HK) 3Q Recurring Profit Slumps 42% YoY, Misses

Morgan Stanley said in its report that SINO BIOPHARM (01177.HK) had posted 3Q20 sales and recurring profit down by 19% and 42% yearly, both missing its estimate, dented by volume-based procurement and lingering COVID-19 impact.

The broker kept Overweight on SINO BIOPHARM at the target price $9.87.

Source: AAStocks Financial News

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Brokers' Post-Results TPs, Views on SINO BIOPHARM (01177.HK)

Brokers│Ratings│TPs (HK$)
Citigroup│Buy│12.8
Daiwa│ Buy │11
CICC│Outperform│12->10
Morgan Stanley│Overweight│9.87
BofA Securities│ Overweight │10.09->9.79
Credit Suisse│ Outperform │10->9.4
JPMorgan│ Overweight │9.2
Macquarie│Neutral│9.52->8.39

Brokers│Views
Citigroup│QoQ results miss
Daiwa│QoQ results dampened by centralised drug procurement; at the worst time
Morgan Stanley│QoQ results miss; eyes drug price negotiation in national medical insurance drug catalog
BofA Securities│QoQ results take short-term headwinds
Credit Suisse│Bullish on the long-term commercial potential of products
JPMorgan│QoQ results remain smothered by centralised drug procurement, coronavirus pandemic
Macquarie│FY20 results likely disappointing; short-run industry incident indirectly dents valuation

Related NewsC Suisse Axes SINO BIOPHARM (01177.HK) TP to $9.4; Rated Outperform

Source: AAStocks Financial News

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Sino Biopharmaceutical Ltd (1177 HK) - Softer than expected 3Q

Headquartered in Hong Kong and Beijing, Sino Biopharmaceutical (中国生物制药有限公司, SBP) is a leading drug manufacturer in China with a competitive drug portfolio, strong sales force and promising pipeline.

FY19 revenue contributors by major disease areas were: hepatitis ~24%, oncology 22%, cardio-cerebral 13%, orthopaedic 8%, digestive 6%, respiratory 5% & anti-infectious 4%.

SBP is the industry leader for liver diseases drugs, a segment with annual sales revenue exceeding CNY 1bn and accounts for about a quarter of the overall sales of the liver disease market in China.

While ongoing healthcare reforms focusing on price and quality controls should weigh on margins and may continue to cause volatility in sector share prices, following Covid-19, there should be greater policy support for domestic drug innovation, which benefits pharmas (such as SBP) with strong R&D focus and growing pipelines. BUY.

Source: OCBC

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SINO BIOPHARM (01177.HK) Pumps US$515M Into COVID-19 Vaccine Manufacturer R&D

SINO BIOPHARM (01177.HK) announced that its subsidiary Talent Forward Limited had entered into an agreement in relation to the capital contribution into Sinovac LS in an amount of US$515 million.

Sinovac LS, which is principally engaged in the business of research and development of vaccines for human use, has made significant progress in the development of the COVID-19 vaccine CoronaVac, making it one of the few enterprises in China that has self-developed and produced COVID-19 vaccines.

Source: AAStocks Financial News

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Sino Biopharm – BUY

Anlotinib got two new indications included in the 2020 NRDL with a 37% price cut for all specifications. This round of price pressure is milder and offers Anlotinib great market expansion opportunities.

We believe the NRDL inclusion will significantly lower the cost for patients and continue to boost volume growth for Anlotinib.

Meanwhile, Sino Biopharm has just announced buying a 15.03% stake in Sinovac Life Sciences (Sinovac LS) for US$515m, which is one of the leading domestic COVID-19 vaccine developers in China. The investment aims to help Sinovac enhance its R&D and production capabilities of CoronaVac.

We believe it will allow Sino Biopharm to have access to the global market and accelerate its pace of globalisation. Moreover, the company has spent about 10.6% of its total revenue on R&D in the past few years and has nurtured an extensive innovative product pipeline.

Anlotinib is under 27 trial programmes, while anti-PD-1 and PD-L1 drugs are under 6 and 11 trials respectively.

Although the fourth round of GPO tender may bring pressure on revenue growth in 2021, we expect its innovative product approvals (such as Anlotinib’s new
indications and combo therapies, and Recombinant Coagulation Factor VIII for injection) to support a stronger revenue growth from 2022.

Maintain BUY and target price of HK$9.00.

Share Price Catalyst

Events:
a) Positive impact from NRDL price negotiation;
b) possible breakthrough in globalisation via the vaccine business of SinoVac; and
c) potential launch of new products.

• Timeline: 1H21

Source: UOBKH

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SINO BIOPHARM Proposes Listing on STAR Mkt

SINO BIOPHARM (01177.HK) announced that, on 3 February 2021, the Board has approved a preliminary proposal for the possible issue of RMB Shares and listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange (Sci-Tech Board).

The Proposed Domestic Issue shall be conditional upon and subject to market conditions, the approval of the Shareholders at the general meeting of the Company and the necessary Regulatory Approvals.

After deducting the issuance expenses, the proceeds of the Proposed Domestic Issue are preliminarily intended to be used for the development of the principal businesses of the Company, merger and acquisition in the industry, and general working capital.

Source: AAStocks Financial News