The Zhitong Finance App learned that Morgan Stanley released a research report stating that it will maintain Sinopharm Holdings (01099)'s “increase” rating and a target price of HK$22.5. The bank pointed out that the company's results for the third quarter of 2026 reflect that the domestic pharmaceutical industry is still under pressure, and that hospital reimbursement controls and price cuts continue to drag down revenue and profit margins.

Sinopharm Holdings' revenue, operating profit and net profit for the third quarter were 144.8 billion yuan, 3.635 billion yuan and 1.91 billion yuan respectively, down 0.4%, up 6.2%, and 3.7% year-on-year respectively. In the first nine months of this year, revenue, operating profit and net profit decreased by 0.9%, decreased by 0.8%, and increased by 0.1%, respectively.

The bank indicated that prescription channels are still under pressure. Revenue from the pharmaceutical distribution, medical device and retail segments declined slightly in the third quarter, remained flat, and grew by low double digits year-on-year, respectively.

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