CLSA has issued a research report reiterating its "Outperform" rating on China Resources Pharmaceutical (03320). Following the company's performance last year, CLSA has increased its revenue forecasts for 2026 and 2027 by 4.1% and 4.8%, respectively. Net profit projections for the same periods were raised by 22.6% and 15%. The target price has been lifted from HK$5.6 to HK$7.2.

China Resources Pharmaceutical's results for the previous year exceeded expectations. Revenue during the period grew by 4.6% year-on-year to RMB 269.574 billion, while net profit increased by 20.7% to RMB 4.05 billion, both surpassing market forecasts. This was primarily driven by strong performance in the pharmaceutical business, effective control of operating expenses, and reduced financing costs.

Full-year gross profit margin and net profit margin expanded by 0.7 and 0.2 percentage points, reaching 16.5% and 1.5%, respectively. The company declared total annual dividends of approximately RMB 1.2 billion, with the dividend payout ratio rising from 25% in 2024 to 30%. Management reaffirmed its commitment to a more proactive dividend policy over the next five years, while balancing medium-term funding needs.