Chinese pharmacy Fall 2% Investment Bank to judge the stock price trend differentiation

The Chinese pharmacy, which Q1 net profit of 72% to HK $262 million over a year earlier, fell 1.72% to 4.01 Hong Kong dollars and sold 32.22 million shares in a half-day after a long low.　　Goldman Sachs issued a report saying it lowered its rating from buying to neutral, but raised its target price from HK $4.1 to HK $4.63 as it extended earnings forecasts to fiscal year 10 and adjusted the P/E ratio to 8 times times the original 6 times-fold, at a premium of 15%.　　Goldman Sachs, China's pharmaceutical industry has gained 23.3% per cent in the past 12 months, the current level of equity is reasonable, the potential for rising is limited, and vitamin C and penicillin prices continue to face downward pressure due to overcapacity and weak global demand. But DBS is still bullish on Chinese pharma's share price performance, maintaining the stock's buying rating, with a target price of HK $5.8, the equivalent of 1.6 times times the city's net rate, and a hefty 45% premium over market prices. While China's pharmaceutical earnings growth has failed to meet higher market expectations, the stock's share price has been reversed because of its solid fundamentals and strong balance sheets for VC and finished drugs. But in view of its competitive profitability and the impact of excess market capacity, DBS slashed China's earnings forecasts for 09 and 10 for the fiscal year by 4% and 2% respectively.