External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Strong double-digit growth in 1Q24. CSPC reported 1Q24 revenue of RMB8.98bn (+11.5% YoY, +18.4% QoQ) and attributable net profit of RMB1.61bn (+12.9% YoY, +17.0% QoQ), regaining double-digit growth, and representing 26% and 20% of our previous full-year estimates, respectively.</li><li>The GP margin in 1Q24 increased to 72.3% (vs 68.5% in 1Q23), mainly due to a higher proportion of revenue from finished drugs (84.2% in 1Q24 vs 79.7% in 1Q23).</li><li>Selling expense ratio increased to 33.0% in 1Q24 (vs 30.9% in 1Q23), due to the higher proportion of revenue from finished drugs, in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong double-digit growth in 1Q24. CSPC reported 1Q24 revenue of RMB8.98bn (+11.5% YoY, +18.4% QoQ) and attributable net profit of RMB1.61bn (+12.9% YoY, +17.0% QoQ), regaining double-digit growth, and representing 26% and 20% of our previous full-year estimates, respectively.The GP margin in 1Q24 increased to 72.3% (vs 68.5% in 1Q23), mainly due to a higher proportion of revenue from finished drugs (84.2% in 1Q24 vs 79.7% in 1Q23).Selling expense ratio increased to 33.0% in 1Q24 (vs 30.9% in 1Q23), due to the higher proportion of revenue from finished drugs, in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Accelerating Growth in Finished Drug Sales

<ul><li>FY23 results in line with expectation. CSPC reported FY23 revenue of RMB31.45bn (+1.7% YoY) and attributable net profit of RMB5.87bn (-3.6% YoY), in line with our previous estimates.</li><li>The adjusted attributable net profit (excl. impact from financial assets, share-based compensation and disposal of JV &amp; associates) in FY23 increased 2.8% YoY to RMB6.28bn.</li><li>The turnover days of receivables increased to 63 days in FY23 from 44 days in FY22 due to slower customer settlement, but were still within a normal range.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FY23 results in line with expectation. CSPC reported FY23 revenue of RMB31.45bn (+1.7% YoY) and attributable net profit of RMB5.87bn (-3.6% YoY), in line with our previous estimates.The adjusted attributable net profit (excl. impact from financial assets, share-based compensation and disposal of JV &amp; associates) in FY23 increased 2.8% YoY to RMB6.28bn.The turnover days of receivables increased to 63 days in FY23 from 44 days in FY22 due to slower customer settlement, but were still within a normal range.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - New Products to Contribute Meaningful Revenue in 2024

<ul><li>9M23 results in line with expectation. CSPC reported 9M23 revenue of RMB23.87bn (+1.6% YoY) and attributable net profit of RMB4.49bn (+0.6% YoY), representing 75% and 74% of our previous FY estimates, respectively.</li><li>The adjusted attributable net profit (excl. impact from fair value change of financial assets and share-based compensation) in 9M23 increased 2.0% YoY to RMB4.72bn.</li><li>Due to the price erosion of Keaili and vitamin C, the GP margin in 9M23 decreased to 70.4% (vs 72.7% in 9M22), while in 3Q23, the GP margin was consistent as 2Q23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

9M23 results in line with expectation. CSPC reported 9M23 revenue of RMB23.87bn (+1.6% YoY) and attributable net profit of RMB4.49bn (+0.6% YoY), representing 75% and 74% of our previous FY estimates, respectively.The adjusted attributable net profit (excl. impact from fair value change of financial assets and share-based compensation) in 9M23 increased 2.0% YoY to RMB4.72bn.Due to the price erosion of Keaili and vitamin C, the GP margin in 9M23 decreased to 70.4% (vs 72.7% in 9M22), while in 3Q23, the GP margin was consistent as 2Q23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) – New Products to Drive Sales Recovery

<ul><li>Sales of legacy products to remain stable. CSPC has nurtured marketleading products in nervous system, oncology, anti-infective and cardiovascular disease, etc. NBP, Duomeisu, Jinyouli, Keaili, and Xuanning contribute to most of the Company’s product sales.</li><li>NBP recorded sales growth of 10.8% YoY in 1Q23, while pressures remain on the future sales of NBP upon the launch of generics and NBP’s inclusion in centralized procurement, which we think will take time.</li><li>We expect the sales of NBP to remain stable over the next two years. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sales of legacy products to remain stable. CSPC has nurtured marketleading products in nervous system, oncology, anti-infective and cardiovascular disease, etc. NBP, Duomeisu, Jinyouli, Keaili, and Xuanning contribute to most of the Company’s product sales.NBP recorded sales growth of 10.8% YoY in 1Q23, while pressures remain on the future sales of NBP upon the launch of generics and NBP’s inclusion in centralized procurement, which we think will take time.We expect the sales of NBP to remain stable over the next two years. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) – Innovative Platforms to Drive Future Growth

<ul><li>CSPC reported 1H23 revenue of RMB16.08bn (+3.0% YoY) and attributable net profit of RMB2.97bn (flattish YoY).</li><li>The adjusted attributable net profit (excl. impact from fair value change of financial assets and share-based compensation) in 1H23 increased 3.0% YoY to RMB3.16bn.</li><li>The 1H23 sales of finished drugs increased 5.2% YoY to RMB12.93bn, with the nervous system disease products recording +17.5% YoY sales growth to RMB4.55bn, mainly driven by the strong sales growth of NBP. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC reported 1H23 revenue of RMB16.08bn (+3.0% YoY) and attributable net profit of RMB2.97bn (flattish YoY).The adjusted attributable net profit (excl. impact from fair value change of financial assets and share-based compensation) in 1H23 increased 3.0% YoY to RMB3.16bn.The 1H23 sales of finished drugs increased 5.2% YoY to RMB12.93bn, with the nervous system disease products recording +17.5% YoY sales growth to RMB4.55bn, mainly driven by the strong sales growth of NBP. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) – Steady Finished Drug Sales

China

CSPC Pharmaceutical Group Limited is a prominent Chinese pharmaceutical company engaged in the research, development, manufacturing, and sale of pharmaceutical products, including innovative drugs and bulk drugs. Its key products include innovative drugs for nervous system diseases, oncology, anti-infectives, and cardiovascular diseases, as well as bulk products like vitamin C, antibiotics, and caffeine. The company was formally established in 1997 and is headquartered in Shijiazhuang, Hebei Province, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CSPC Pharmaceutical (1093 HK)