On August 21, SBP GROUP rose 3.15% in regular trading, trading at HK$5.555/share with turnover of HK$226 million, extending gains following its blockbuster H1 results released on August 19.
The continued upward momentum follows multiple analyst endorsements. BOCOM International maintained a Buy rating with a target price of HK$10 based on a DCF model, citing H1 revenue growth of 10.6% year-over-year to RMB 19.4 billion and adjusted net profit surging 92.3% to RMB 3.3 billion, which significantly exceeded market expectations. Citi also raised its target price to HK$10.8, highlighting innovative drug sales growth of 44.3% to RMB 8.79 billion. Gross margin improved to 83.0% while SG&A and R&D expense ratios declined materially to 32.0% and 17.0% respectively. Management guided that innovative drug revenue contribution would reach approximately 50% for the full year, with over 30 new innovative drugs expected to launch between now and 2030 with domestic peak sales potential of RMB 50 billion.
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