China's 3SBio H1 net profit falls on higher expenses
China's 3SBio H1 net profit falls on higher expenses
Overview
China biopharmaceutical firm's half-year revenue rose 3.9% yr/yr
Net profit attributable to shareholders fell 15.6% yr/yr
Gross profit increased 2.1% yr/yr, EBITDA declined 17.7% yr/yr
Outlook
SBio estimates RMB1,000 mln to RMB1,200 mln of capital expenditure over the next three years for facilities and production expansion
Group will advance Yisaituo psoriasis expert networks and NuPIAO dialysis treatment protocols in H2 2026
Result Drivers
HIGHER SALES - Co attributed revenue growth to increased sales compared to prior yr
RISING EXPENSES - Selling and distribution expenses increased yr/yr, contributing to lower net profit
LOWER OTHER INCOME - Other income and net (losses)/gains fell sharply yr/yr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| RMB 4.53 bln |
|
H1 Net Income Attributable |
| RMB 1.15 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for 3SBio Inc. is HK$32.60, about 97.6% above its August 20 closing price of HK$16.50
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago
Reuters Recommended Reads
Aug 20 - China's top drugmaker Hengrui sees profit growth squeezed by bulk-buying programs
Aug 19 - Sino Biopharmaceutical H1 revenue up 10.6% on innovative drug sales
Aug 18 - Giant Biogene's profit drops on higher distribution expenses
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)