Core Viewpoint - Citi has reiterated its "highly confident outperform" rating for CSPC Pharmaceutical Group (01093), raising the target price from HKD 17.4 to HKD 19, anticipating that the business development (BD) transactions completed by CSPC will convert into recurring revenue starting this year [1] Group 1: Business Development Transactions - CSPC has completed four significant BD transactions with AstraZeneca (AZN.US) and Madrigal Pharmaceuticals (MDGL.US), expected to generate approximately USD 10.2 billion in upfront and milestone payments, which will significantly boost profits from 2025 to 2027 [1] - The projected profits for CSPC are expected to rise to RMB 6.3 billion, RMB 10.2 billion, and RMB 10.9 billion for the years 2025, 2026, and 2027 respectively [1] Group 2: Financial Forecast Adjustments - The financial forecasts for CSPC have been adjusted, with profit estimates for 2025, 2026, and 2027 being decreased by 2.4%, increased by 8.2%, and increased by 53.7% respectively, reflecting the financial impact of the BD transactions after risk adjustments [1] - CSPC is currently trading at a forecasted price-to-earnings ratio of 9.2 times for 2026, significantly lower than the industry median of 16.4 times [1]
里昂：料石药集团(01093)BD交易将转化为经常性收入 升目标价至19港元