Shanghai Pharma (2607.HK): Comment on 18H1 Results: Strong Momentum of Manufacturing and Coming Rebound of Distribution September 12, 2018

Investment Summary

The company publishes interim results that the manufacturing business and retail part have maintained rapid growth, and the distribution segment has maintained double-digit growth under the influence of the two-invoice system (TIS). Profitability continued to improve with rising margins. It is expected that distribution business will recover in 18H2. We maintain EPS forecasts and adjust the target price to HK$24.0 to factor into further devaluation of RMB. (Closing price at 10 Sep 2018)

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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