Core Viewpoint - The report from CICC indicates that CSPC Pharmaceutical Group's performance in the first three quarters of 2023 was poor, with revenue declining by 4.9% year-on-year, and net profit and core net profit decreasing by 15.9% and 15.2% respectively [1][2]. Group 1 - The decline in performance is attributed to the impact of centralized procurement and medical insurance cost control on the traditional Chinese medicine business, as well as a decrease in demand and prices for raw materials [2]. - The third quarter's performance fell short of expectations, prompting a downward revision of the core net profit forecast for CSPC for this year and next year, while maintaining an "outperforming the industry" rating [2]. - The target price has been reduced by 19% to HKD 6.8 [2].
中金:下调石药集团目标价至6.8港元