Lyon: Reiterates CSPC Group's (01093) “Outperforms the Market with High Confidence” Rating Target Price of HK$19

The Zhitong Finance App learned that Lyon released a research report saying that the sharp drop in the stock price of Shiyao Group (01093) brought attractive market entry opportunities and reaffirmed the company's “high confidence to outperform the market” rating, with a target price of HK$19.

According to the report, Novartis (NVS.US) CEO's latest review of the Lp (a) HORIZON study may attribute the study failure to an advanced reduction in Lp (a) compared to lifelong genetic Lp (a) exposure, which brought limited cardiovascular benefits, which would put pressure on mainland Lp (a) participants, including CSPC Group (01093). CSPC Group cooperated with AstraZeneca (AZN.US) to develop the oral Lp (a) project YS2302018, which is currently in the first phase of clinical phase.

According to the bank, news is also circulating in the market about the negative results of the renewal of the national health insurance catalogue of Enbipu, a subsidiary of the CSPC Group. In this regard, the bank has confirmed to the company that the price adjustment is manageable. As for YS2302018, the first phase of the overseas project is still progressing according to plan, and the second phase of proof-of-concept research is ongoing. Lyon believes that Horizon's failure as the first LP (a) outcome study will not immediately overturn Lp (a) predictions.