Health Care Roundup: Market Talk

Dow Jones
21 hours ago

The latest Market Talks covering the Health Care sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0208 ET - CSPC Pharmaceutical's coming clinical data presentations over the next two months could serve as near-term share-price catalysts, say DBS Group Research's Mark Kong and Nico Chen in a note. The Chinese pharmaceutical group is scheduled to present on several key products, including Phase 3 clinical data for its GLP-1 fusion protein to treat obesity and diabetes, the analysts say. The company's voluntary participation is seen as a sign of confidence in the data, the analysts say. CSPC trades around 18X its 2027 price-to-earnings ratio, which is a roughly 28% discount to the peer average and offers an attractive entry point, they say. DBS reinstates its coverage of CSPC with a buy rating and 13.70 Hong Kong dollar target price. Shares fall 4.2% to HK$8.72. (megan.cheah@wsj.com)

2253 ET - Raffles Medical shares' risk-reward profile appears attractive, says RHB Research's Shekhar Jaiswal in a note, citing its widening discount, compared with its Southeast Asian peers, and net-cash balance sheet. The Singaporean hospital operator's shares have fallen to a 52-week low following its soft 1H results, he says. Yet, the right-sizing of its transitional care facility, reflected in the results, suggests normalization rather than a deterioration of its core healthcare franchise, he says. The analyst views the company's China segment as a medium-term growth driver, with the potential break-even of its Shanghai facility likely to be a catalyst. RHB retains its buy rating and its target price of 1.15 Singapore dollars. Shares are down 0.6% at S$0.83.(megan.cheah@wsj.com)

2240 ET - Manipal Health Enterprises' earnings are expected to grow thanks to its expansion through a mix of brownfield and greenfield projects, Jefferies equity analysts Alok Dalal and Dhawal Khut say in a note. The investment bank has initiated coverage of the Indian hospital operator with a buy rating on the stock and a target price of 870 rupees. Jefferies forecasts Manipal's revenue to grow 17% annually and its Ebitda to increase 19% annually over FY 2026-FY 2029. Shares closed 1.5% higher at 729.80 rupees on Wednesday.(venkat.pr@wsj.com)

2058 ET - Earnings momentum for the Malaysian rubber products sector appears to be stabilizing, while steep share-price corrections in recent years have made valuations more attractive, Affin Hwang IB analyst Andrew Lim says in a note. Pricing competition is also less aggressive than anticipated, with the gap between Malaysian and China manufacturers narrowing to about $0.50 per 1,000 pieces from nearly $4 previously, he says. More rational pricing and cost pass-through should help sustain recent margin improvements, despite higher natural-gas costs, he adds. Affin Hwang upgrades the country's rubber products sector's rating to overweight from underweight and pegs Hartalega as its top pick.

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