Zhi Tong Cai Jing·2025-09-04 07:52Core Viewpoint - Goldman Sachs reports that Shanghai Pharmaceuticals (601607)(02607) experienced a second-quarter sales revenue of 70.8 billion RMB, a year-on-year increase of 2.3%, which is below expectations, indicating continued weakness across various market segments [1] Financial Performance - The second-quarter recurring net profit was consistent with well-controlled expenditures, but was partially offset by a decline in gross margin [1] - The decline in gross margin is primarily attributed to the ongoing decrease in manufacturing profit margins [1] Earnings Forecast - The company’s earnings forecasts for this year, next year, and 2027 have been adjusted to an increase of 33.5%, a decrease of 0.3%, and a decrease of 6.4%, respectively [1] - The target price has been lowered from 10.29 HKD to 10.08 HKD, while maintaining a "Sell" rating [1]