We believe CSPC’s 1Q21results were higher than market expectations. We expect its existing portfolio (primarily NBP and oncology drugs) to maintain decent growth and pipeline product launches to support a re-rating in the next 1–2 years. We lifted our 2021/22/23F EPS forecast by 6.4%/5.9%/3.8% to reflect good SGA control. We lift our TP from HK$11.23 (19x 2022F P/E) to HK$13.6 (22x 2022F P/E, in line with its historical average, Figure 3) for good execution of its RD pipeline.
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