Sinopharm Group Shares Fall as Higher Costs Cut Into Quarterly Profit
By Amanda Lee
Sinopharm Group's shares fell by their most in more than six months in early trade after the Chinese state-owned pharmaceutical giant's quarterly profit fell amid higher operating costs and impairments.
Shares were down 6.4% at 20.45 Hong Kong dollars ($2.61) early Monday, taking them into the red for the year.
Sinopharm said ahead of trading that first-quarter profit dropped 11% from a year earlier to 1.42 billion yuan ($196 million). A 1.2% rise in total operating revenue was offset by a 1.5% rise in total operating cost, while credit impairment losses expanded 15% on year.
The company separately said its board had approved a plan to raise CNY30.0 billion via the issuance of corporate debt to repay loans and matured debt, replenish working capital and fund project construction, saying the moves would help trim financing costs and improve debt structure.
The issuance, which is subject to approval by shareholders and regulators, will comprise CNY25.0 billion in short-term debt with a one-year term and CNY5.0 billion in debt with a term of up to 10 years.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
April 28, 2024 23:46 ET (03:46 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations