司太立(603520):Upstream raw-material price hikes and COVID weighed on earnings

Equity Research Report

  Zhejiang Starry Pharmaceutical (603520 CH)

  Upstream raw-material price hikes

  and COVID weighed on earnings

  Huatai Research Interim Results Review Rating (Maintain): BUY

  28 August 2022 │ China (Mainland) Chemical Pharma Target price (RMB): 24.02

  Analyst DAI Wen

  1H22 GPM declined, earnings came under pressure

  Zhejiang Starry Pharmaceutical’s 1H22 revenue/attributable net profit/recurring

  SAC No. S0570516120002

  SFC No. BFI915

  daiwen@htsc.com

  +(86) 21 2897 2078

  attributable net profit were RMB940/60/50mn (+10.2/-58.8/-68.4% yoy). For 2Q22, Analyst LI Yiwei

  revenue/attributable net profit/recurring attributable net profit fell

  13.4/117.7/120.6% yoy). As prices of upstream raw material iodine remain high,

  we lower our 2022E/2023E/2024E attributable net profit forecasts to

  SAC No. S0570121070125

  SFC No. BSD964

  liyiwei@htsc.com

  +(86) 21 2897 2228

  RMB201/458/725mn (previous: RMB494/644/811mn). Given the company’s

  leading position in the contrast age