Company Coverage
Sinopharm Group (1099 HK): 1H26: Results In Line; Striving For Growth Amid Policy Headwinds
HOLD (Maintained)
Current price:
Target price:
Upside:
HK$16.33
HK$17.00
+4.1%
Analyst
Analyst
Highlights
Sinopharm’s 1H26 results were largely in line, with revenue down 1.1% yoy and net profit attributable to shareholders down 1.8% yoy to Rmb3.4b. Gross margin narrowed 0.37ppt yoy to 6.74% on the expanded scale of VBP, but effective expense control and savings in finance costs cushioned the bottom line.
Amid policy headwinds, Sinopharm strives for growth by focusing on product and service optimisation.
Maintain HOLD with an unchanged target price of HK$17.00.
Analysis
1H26 results in line. Sinopharm Group’s (Sinopharm) 1H26 revenue decreased 1.1% yoy to Rmb282.8b. Net profit attributable to shareholders dropped 1.8% yoy to Rmb3.40b in 1H26. The results are lower than market expectations, but generally in line with our full-year growth estimates for 2026.
Highlights
Sinopharm’s 1H26 results were largely in line, with revenue down 1.1% yoy and net profit attributable to shareholders down 1.8% yoy to Rmb3.4b. Gross margin narrowed 0.37ppt yoy to 6.74% on the expanded scale of VBP, but effective expense control and savings in finance costs cushioned the bottom line.
Amid policy headwinds, Sinopharm strives for growth by focusing on product and service optimisation.
Maintain HOLD with an unchanged target price of HK$17.00.
Analysis
1H26 results in line. Sinopharm Group’s (Sinopharm) 1H26 revenue decreased 1.1% yoy to Rmb282.8b. Net profit attributable to shareholders dropped 1.8% yoy to Rmb3.40b in 1H26. The results are lower than market expectations, but generally in line with our full-year growth estimates for 2026.
HOLD (Maintained)
Current price:
Target price:
Upside:
HK$16.33
HK$17.00
+4.1%
Analyst
Analyst
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