Citi lifts 3SBio stock rating, doubles price target to HK$13.00

Published 26/03/2025, 12:08
Citi lifts 3SBio stock rating, doubles price target to HK$13.00

On Wednesday, Citi analyst Wanngbin Zhou upgraded 3SBio stock from Neutral to Buy and significantly raised the price target to HK$13.00, a substantial increase from the previous HK$6.30. According to InvestingPro data, the company maintains a "GREAT" Financial Health score of 3.15 out of 5, with 5 analysts recently revising their earnings estimates upward. This upgrade followed the announcement of the company’s financial results for the fiscal year 2024, which showed a 17% year-over-year increase in revenue to Rmb9.1 billion and a 35% increase in net profit to Rmb2.1 billion. When adjusted for net profit, the growth rate was reported at 19%. The company’s strong liquidity position is evident in its current ratio of 2.72, with liquid assets comfortably exceeding short-term obligations. Want deeper insights? InvestingPro offers comprehensive financial analysis and over 10 additional key insights for this stock.

The strong performance of 3SBio was attributed to several factors, including the growth of TPO, which saw a 20% year-over-year increase to Rmb5.1 billion. This growth was supported by its inclusion in the China Society of Clinical Oncology (CSCO) guidance. Another product, Mandi, also contributed to the company’s success with a 19% year-over-year growth to Rmb1.3 billion, with an even higher growth rate of 26% in the second half of the fiscal year 2024.

Looking ahead, 3SBio’s management has provided guidance for continued double-digit revenue growth for the fiscal year 2025. Additionally, the company’s pipeline product 707, which targets PD-1/VEGF, has shown promising efficacy data and potential for global market reach. Zhou believes that the clinical progress of this product could lead to a re-rating of the stock. The company’s growth potential is reflected in InvestingPro’s analysis, which shows a robust revenue CAGR of 24% over the past five years and forecasts 25% revenue growth for FY2025.

The upgrade to a Buy rating and the revised price target of HK$13.00 reflect Citi’s positive outlook on 3SBio’s financial growth and potential for future gains based on their current pipeline and market performance. Zhou’s statement highlighted the company’s strong annual results and the expectation that the clinical advancement of its key products will continue to drive the company’s value.

In other recent news, ANI Pharmaceuticals (NASDAQ:ANIP) has made significant strides in various areas of its business. The company recently launched generic Nitazoxanide Tablets, adding to its portfolio of generic pharmaceuticals. According to IQVIA data, annual U.S. sales for this drug are estimated at approximately $36.1 million. Additionally, ANI Pharmaceuticals completed a $17.25 million buyout of its perpetual royalty obligation to SWK Funding LLC, a move that is expected to increase the company’s financial flexibility and support its growth strategy.

The U.S. Food and Drug Administration (FDA) has approved an updated label for ILUVIEN, expanding its use to treat chronic non-infectious uveitis affecting the posterior segment of the eye. This approval adds to its existing indication for diabetic macular edema. Analyst firms have also shown confidence in ANI Pharmaceuticals, with Jefferies initiating coverage with a Buy rating and a price target of $80, citing the company’s momentum with Cortrophin Gel and generic offerings. Similarly, JPMorgan has set an Overweight rating with an $85 price target, highlighting ANI’s strong portfolio of branded and generic products.

These developments reflect ANI Pharmaceuticals’ ongoing efforts to strengthen its market position and enhance its product offerings. The company’s recent strategic moves, including the launch of new products and financial maneuvers, indicate a focus on growth and operational efficiency. Investors and analysts are closely monitoring these changes as ANI Pharmaceuticals continues to navigate the competitive biopharmaceutical landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.