Bottom-fishing on weak 1H21 results
■ SSY had 1H21 weak results in 1H21, as we expected.
■ We see four key growth drivers in the future: 1) plastic ampoules; 2) bio-processing films; 3) bulk medicine; and 4) increasing operating leverage.
■ We cut our 2021/22/23F EPS by 17.8%/4.6%/0.9%, respectively, mainly to factor in the weak 1H21 results. Our TP of HK$7.19 is based on 10x 2022F P/E for existing business + bioprocessing films of Rmb6.7bn. We think the stock is worth revisiting at the current price.