CSPC Pharmaceutical (1093.HK): Several drugs attained approvals May 16, 2018 372

Investment Summary

Since April, the company has acquired two clinical trail approvals, one drug registration approval and passed consistency evaluation of Azithromycin tablets. We expect further progresses of pipeline and continuously rapid growth of innovative drugs. We maintain target price of HKD24.8, implying 18E PE 42x, with EPS estimation of HKD0.59/0.77 in 18E/19E. (Closing price at 14 May 2018)

Business Overview

Two products gained clinical trail permissions. 1) Q101-Pegylated Recombinant Human Interferon-2a for Injection: it is used alone or in combination with other drugs for the treatment of adults with chronic hepatitis B, and used in combination with ribavirin for the treatment of adults with chronic hepatitis C with no previous treatment. 2) Vinorelbine Tartrate Liposome Injection: Vinorelbine features high anti-cancer activity. It can be used alone or in combination with other drugs clinically for the treatment of non-small cell lung cancer, breast cancer, ovarian cancer and malignant lymphoma. The product can significantly suppress the growth of various solid tumours in a dosedependent manner, with efficacy increased by at least four times.

About the author

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Eurus Zhou
Phillip Securities (HK)

Graduated from Hong Kong Polytechnic University, Master of Finance (Investment Management). Possess bachelor degree majoring in Financial Management from Southwestern University of Finance and Economics. Focus on industry prospect and corporate fundamentals to explore investment value and cover pharmaceutical and consumer industry.

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