UBS: China's pharmaceutical stocks had mixed results in the first half of the year, preferred Xiansheng Pharmaceutical (02096)

The Zhitong Finance App learned that UBS released a research report saying that the performance of China's pharmaceutical stocks in the first half of the year was mixed. Among the nine rated pharmaceutical companies, five performed better than market expectations, namely Hanson Pharmaceuticals (03692), Xiansheng Pharmaceutical (02096), China Biopharmaceuticals (01177), Shiyaku Group (01093), and Colon Pharmaceuticals (002422.SZ). Federal Pharmaceuticals (03933) performed more or less in line with expectations, while Sansheng Pharmaceuticals (01530) and Huadong Pharmaceuticals (002422.SZ) performed more or less in line with expectations, while Sansheng Pharmaceuticals (01530) and Huadong Pharmaceutical (000) 963.SZ) Performance fell short of expectations, and all gave “buy” reviews grade. Corporate Authorized Partnership (BD) revenue during the period was pleasantly surprising and generally higher than UBS expectations. The median revenue and net profit growth of the industry in the first half of the year was 4% and 3%, respectively. UBS currently predicts that growth will accelerate to 7% and 9% for the whole year.

UBS listed Xiansheng Pharmaceuticals as the preferred stock in the industry, pointing out that Xiansheng Pharmaceutical was the only company to raise the 2026 guidelines. The adjusted net profit growth target was raised from 30% to 45%, and revenue growth was maintained at 30%, and the target price was HK$16.6. Management said that Sanbexin (Sanbexin), Quviviq (Quviviq) and the new oncology drug portfolio continued to drive product sales growth, and the recent collaboration with Roche on pre-clinical TCE brought in an additional $75 million in down payment revenue.

The bank said it raised the target price of Hanson Pharmaceuticals from HK$48.8 to HK$50.8 based on the gross margin for the first half of the year being better than expected. For Zhongsheng Pharmaceutical, CSPC Pharmaceutical, Federation Pharmaceuticals and Sansheng Pharmaceutical, the target prices are HK$7.7, HK$11.8, HK$12.8 and HK$26.4, respectively.