Shanghai Pharmaceuticals Holding Co Ltd Class A

601607: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥68.45	Xysclxt	Rnvrtgw

Innovent’s Moat Upgraded to Narrow; FVE Raised; NRDL Results Reassuring for Drug Pipelines

Jay Lee

Jan 28, 2021

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.

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