Jumpcan Pharma (600566.SH): Notable Growth in Third Quarter October 30, 2017 712

Investment Summary

Jumpcan Pharma published its third quarterly results with revenue/net profit increasing by 21.75%/38% YoY. We forecast the future drivers come from: 1) core products’ inclusion in more provincial drug reimbursement lists (PDRL); 2) enhanced sales network with expanding OTC market share; 3) sustainable and enriched product lines.

We predict the topline growth rate in 2017 and 2018 to be 22% and 18%, and increase our target price to RMB45.7 with `Accumulate` recommendation. (Closing price as at 26 Oct 2017)

About the author

Profile photo of Eurus Zhou

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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