SHTDF - Sinopharm Group: External Headwinds And Re-Rating Drivers Draw Attention

2024-06-03 05:49:03 ET

Summary

• Sinopharm Group faces near-term challenges like declining drug prices and lower sales from hospitals.
• But SHTDF's valuations could re-rate in the long term, if certain drivers such as industry consolidation, SOE reform, and sales mix optimization materialize.
• A Hold rating is awarded to Sinopharm Group stock, taking into consideration both the headwinds for the short term and the re-rating drivers for the long run.

Elevator Pitch

My rating for Sinopharm Group Co. Ltd. ( OTCPK:SHTDF ) ( OTCPK:SHTDY ) [1099:HK] is a Hold. Sinopharm Group calls itself the operator of China's "largest national pharmaceutical distribution network" on its LinkedIn page ....

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