Excerpts from latest analyst reports...
YUANTA: SIHUAN PHARMA initiated with ‘buy’ call
Yuanta Research said it is beginning coverage of Sihuan Pharma (HK: 460) with a ‘buy’ call.
“We suggest investors to look to the consolidators and those producing new drugs,” Yuanta said.
It added that one of the most common and potentially fatal diseases known to man is directly in the crosshairs of Sihuan’s R&D staff.
“Cardio-cerebral vascular related diseases/conditions are the No.1 cause of death in China, and Sihuan Pharma is the leading player in China’s CCV pharmaceuticals market,” Yuanta said.
The research house has assigned a 4.70 hkd target price on Sihuan.
“Driven by its newly-acquired product line, we forecast a 25% EPS CAGR in 2010-13,” Yuanta added.
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YUANTA: SINO BIOPHARM initiated with ‘buy’ call
Yuanta Research said it is beginning coverage of Sino Biopharm (HK: 1177) with a ‘buy’ call.
“We favor companies that boast strong R&D and manufacturing capabilities.
"We believe investors should focus on major cardio-cerebral vascular players, as medication needs for CCV treatment rise significantly with higher life expectancy,” Yuanta said in the broker call.
The research house assigned a 3.30 hkd target price on the pharmaceutical firm.
“Sino Biopharm is the leading innovative pharmaceutical company in China; we are positive on its strong R&D capability, high gross margin product mix and solid M&A track record.,” Yuanta said.
It is forecasting an earnings CAGR of 24.3% from 2011-13 on CAGR sales of 21.1%.
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