UBS released a research report indicating that SINOPHARM (01099) reported total revenue of CNY 575.1 billion for 2025, a decrease of 1.6% year-on-year. Profit attributable to shareholders was CNY 7.16 billion, an increase of 1.5% year-on-year, both figures largely meeting expectations. Ongoing industry policy headwinds continue to pressure distribution revenue, but the bank believes the company's cost control and business optimization have reduced its operating expense ratio. UBS raised its earnings per share forecast for 2026 to 2028 by 1% to 2%, maintaining a "Buy" rating, and increased the target price from HK$24.2 to HK$25.7. The bank expects the company's revenue growth this year to outpace the industry, primarily driven by market share gains, innovative drug distribution business, and retail operations, with a slight expansion anticipated in the net profit margin.