Credit Suisse cuts Fosun Pharma target to HK$29

Credit Suisse lowered its target price for Shanghai Fosun Pharmaceutical (Group)(02196) to HK$29 from HK$42.7, and maintained its “outperform” rating.

The research house said Fosun’s 3Q net profit missed market and Credit Suisse’s full year forecast by 20%. Management guided R&D expense will stay at this level due to more products entering into late stage clinical trials. It expects Rituximab biosimilar to be approved in 4Q 2018/1Q 2019.

Credit Suisse cut its 2018/19/20 net profit forecasts by 17%/17%/22% to factor in the higher expenses.

https://www.marketscreener.com/SHANGHAI-FOSUN-PHARMACEUT-6548924/news/Shanghai-Fosun-Pharmaceutical-CS-cuts-Fosun-Pharmaceutical-to-HK-29-27533798/