SINOPHARM Shares Drop Nearly 5% Following Annual Results; Citi Trims Target Price

Stock News
Mar 24

SINOPHARM (01099) fell nearly 5%, declining 4.8% to HK$19.44 at the time of writing, with a turnover of HK$56.2142 million. The company released its annual results for 2025, reporting revenue of RMB 575.168 billion, a decrease of 1.6% year-on-year. Profit attributable to owners of the parent was RMB 7.155 billion, an increase of 1.5% compared to the previous year. Earnings per share were RMB 2.29, and a final dividend of RMB 0.69 per share was proposed. During the reporting period, the three main business segments continued their differentiated development trends. The pharmaceutical distribution segment accounted for 72.79% of revenue, down 0.37 percentage points year-on-year. The medical device distribution segment contributed 19.32% of revenue, slightly down 0.09 percentage points. The pharmaceutical retail segment accounted for 6.42% of revenue, up 0.50 percentage points compared to the prior year. Citi issued a research note stating that SINOPHARM's management expects sales in the pharmaceutical distribution business to be flat this year, while the medical device distribution and retail businesses are projected to recover further and achieve positive growth. Citi lowered its revenue forecasts for SINOPHARM for the current and next year by 3% and 4%, respectively, reflecting the latest guidance from management. It also reduced its earnings per share forecasts by 5% for both years and lowered the target price from HK$23 to HK$22.8, maintaining a "Buy" rating.

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