Chinese drugmakers rose to the highest in a month after traditional medicine maker Shandong Dong-E E-Jiao Co. said first-quarter profit may have more than doubled, bolstering the earnings outlook for its rivals.
The health-care index in the CSI 300 gained 0.5 percent at 1:20 p.m., the most among the 10 industry groups and the highest since March 3. Shandong Dong-E jumped 4.2 percent to 30.85 yuan in Shenzhen, the highest in two years. The CSI index fell 0.7 percent.
“The market is turning a bit defensive so some investors are seeking stocks with definite earnings growth, such as pharmaceutical companies,” said Yan Ji, who helps oversee about $1.2 billion at HSBC Jintrust Fund Management Co. in Shanghai.
Shandong Dong-E said in an exchange filing today first-quarter net income may have risen as much as 150 percent from a year earlier to about 193 million yuan ($28 million). The company had its 2010 earnings per share forecast raised by 13 percent to 0.95 yuan and its 2011 profit estimate by 17 percent to 1.24 yuan at Shenyin & Wanguo Securities Co.
PKU International Healthcare Group Southwest Pharmaceutical Co. rose 3.2 percent to 20.60 yuan in Shenzhen, the highest since June 1997. The company said late yesterday first-quarter net income may have surged as much as 726 percent to about 21 million yuan.
Guangzhou Pharmaceutical Co. climbed 5.1 percent to 13.09 yuan in Shanghai. Yunnan Baiyao Group Co. gained 2.4 percent to 56.48 yuan in Shenzhen.