China Biologic Receives a Buy from Jefferies

By Jason Carr

Jefferies analyst Johnny Kin Man Wong reiterated a Buy rating on China Biologic (NASDAQ: CBPO) yesterday and set a price target of $155. The company’s shares closed yesterday at $117.05.

Kin Man Wong observed:

“We expect the market to be positive on CBPO’s 3Q16 numbers and upgrade to its FY16 full year guidance. The strong results were led by a pricing increase in IVIG, tempered by delays in some key provinces’ tenders. The CFDA’s approval to start clinical trials of two key products should provide growth in the medium term.”

According to, Wong is a 4-star analyst with an average return of 22.5% and a 83.3% success rate. Wong covers the Services sector, focusing on stocks such as New Oriental Education Tech, Tarena International, and Tal Education.

China Biologic has an analyst consensus of Moderate Buy, with a price target consensus of $155.

Based on China Biologic’s latest earnings report from June 30, the company posted quarterly revenue of $91.42M and quarterly net profit of $30.75M. In comparison, last year the company earned revenue of $78.75M and had a net profit of $22.88M.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2016, Wenfang Liu, a Director at CBPO sold 2,900 shares for a total of $360,528.

China Biologic Products, Inc. is the non-state-owned plasma-based biopharmaceutical company approved by the Chinese government. Through its indirect majority-owned subsidiaries, Shandong Taibang Biological Products and Guiyang Dalin Biologic Technologies, and its equity investment in Xi’an Huitian Blood Products, the firm is a fully integrated provider of plasma-based biopharmaceuticals, with capabilities spanning from plasma collection to and research and development, to product manufacturing and commercialization. The firm’s key products, human albumin and immunoglobin, are often used to treat life-threatening conditions, such as low albumin, hemophilia and other blood diseases. The firm has marketed plasma-based products and a pipeline of new products to drive future growth in the large Chinese plasma market. The company was founded on December 20, 1989 and is headquartered in Shandong Province, China.