On September 21, SBP GROUP rose 3.11% in regular trading, trading at HK$5.665/share, with turnover of approximately HK$40.70 million. The gain came amid a broadly positive Pharmaceuticals sector, with peers including CSPC PHARMA up 3.02%, LUYE PHARMA up 4.0%, and HANSOH PHARMA up 2.16%.
On the news front, Daiwa published a research note citing management's reaffirmation that full-year revenue growth will maintain double-digit year-on-year momentum, driven by both licensing income and innovative drug sales growth. Management expects innovative drug sales plus licensing revenue to contribute half of total annual revenue, with newly approved innovative drugs serving as key drivers for sustained volume growth. Generic drug business is anticipated to bottom out this year, with a potential recovery next year on a lower base. Daiwa maintained a Buy rating on the stock.
The latest catalyst builds on a string of recent positive developments, including Goldman Sachs raising its target price to HK$9.07, the completion of a RMB 4.48 billion acquisition of an additional 5% stake in subsidiary CT Tianqing — expected to boost adjusted net profit by approximately RMB 350 million — and dual NDA acceptances for TQH2722 and TQB2102 by the CDE.
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