Shanghai Pharmaceuticals Holding Co Ltd Class A
601607: XSHG (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥69.25 | Prvrt | Kdsnypvp |
Innovent’s Moat Upgraded to Narrow; FVE Raised; NRDL Results Reassuring for Drug Pipelines
We upgrade Innovent’s moat to narrow from none. We raise our fair value estimate to HKD 80.00, from HKD 33.00, which implies a 12-month forward price/sales ratio of 21. While our price remains below the market value, we believe this is primarily due to discount rate assumptions rather than a difference in view on earnings. The stock now has a 3-star rating, and we believe sentiment toward it will remain strong given positive pipeline developments expected over the next year.