CSPC Pharmaceutical's Full-Year Results In Line; mRNA COVID-19 Vaccine Approved

Narrow-moat CSPC’s full-year results were in line with our expectations. The company announced emergency approval from China’s National Medical Products Administration of its SYS6006 mRNA COVID-19 vaccine, which reinforces our long-standing view that the company’s expertise in lipid manufacturing offers a pathway to organic growth that doesn’t rely on innovative but risky drug targets or antibody designs. Finally, the company emphasized stable growth, although it did not give clear numerical guidance. We suspect this may be in part due to uncertainty on revenue from its COVID-19 vaccine.