IPO Evaluation: Sunshine Pharma

Symbol: 06887.HK

Sunshine Pharma is raising funds to support R&D expansion and enhance manufacturing capacity, signaling a growth-driven strategy aligned with sector innovations and pipeline development.

The IPO is managed by China International Capital Corporation Hong Kong Securities Limited, adding institutional credibility and positioning the offer for strong investor demand upon listing.

Operating as a vertically integrated pharmaceutical company in China, the business focuses on anti-infective, chronic disease, and oncology fields. Anti-infective drugs composed 85% of revenue in 2022, growing to 90% in 2023, and adjusting to 69.6% in 2024, showing a broadening product portfolio.

The Chinese pharmaceutical market is expected to grow about 6–8% annually, driven by demographic and healthcare spending trends, while GDP growth remains around 5%, creating a supportive macro environment.

The listing date is set for 7 August 2025, coinciding with strong investor sentiment in healthcare. Over the past 10 trading days, comparable stocks have shown positive momentum: Hansoh Pharma (3692.HK) rose +3.7%, CSPC Pharma (1093.HK) +0.8%, and Hengrui Pharma (600276.SH) jumped +29.9%, indicating a healthy market backdrop.

Sunshine Pharma’s strategy emphasizes expanding R&D pipelines, upgrading production facilities, and entering new therapeutic areas. These initiatives are realistic given its integrated structure and market opportunities.

Major risks include regulatory approval dependencies, concentration in anti-infective drugs, and uncertainty in pipeline execution.

Sunshine Pharma is entering a supportive market with strong sector performance, respected sponsor backing, and a clear growth agenda. The IPO is positioned to trade above its reference price, with an expected 5–15% first-day gain, based on prevailing sector trends and investor appetite.

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