Ge Long Hui A P P·2025-10-22 05:29Core Viewpoint - Morgan Stanley reports a 70% to 80% probability that the stock price of China National Pharmaceutical Group (Sinopharm) will rise in the next 30 days, assigning an "Overweight" rating and a target price of HKD 22.5 [1] Financial Performance - Sinopharm's subsidiary, Sinopharm Holdings, reported a year-on-year revenue and profit increase of 4% and 13% respectively for Q3, indicating a positive turnaround [1] - Another subsidiary, Sinopharm United, experienced a year-on-year decline in revenue and net profit of 2% and 10% respectively for Q3, but noted that its distribution business has stabilized and is recovering [1] Market Outlook - Morgan Stanley indicates that pharmaceutical distributors will remain under market scrutiny until 2025 due to weak domestic demand and the impact of technology licensing activities in China [1] - The current entry point for Sinopharm is considered favorable, with a projected price-to-earnings ratio of 6.5 times for 2026 [1]