Citi has released a research report maintaining its "Buy" rating on Sinopharm (01099) and slightly raising its target price from HK$20.4 to HK$20.5.

The bank noted that the company's third-quarter revenue was broadly in line with expectations, while net profit slightly outperformed market consensus, mainly benefiting from effective expense control.

Strict expense control offset part of the impact from continued pressure on revenue and gross profit, reflecting the resilience of the company's performance.

Sinopharm's third-quarter revenue came in at RMB 144.8 billion, roughly flat year-on-year; the gross profit margin narrowed by 4 basis points year-on-year to 6.8%.

The selling expense ratio declined by 11 basis points year-on-year, driving the total operating expense ratio down by 10 basis points to 3.6%; the net profit margin expanded by 5 basis points year-on-year to 1.3%, supporting a 4% year-on-year increase in attributable net profit to RMB 1.91 billion.