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    New NMPA Drug Approvals Might Change The Case For Investing In SSY Group (SEHK:2005)

    Simply Wall St·12/21/2025 05:15:53
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    • Earlier in December 2025, SSY Group announced that it had received NMPA approval in China to produce and register Levofloxacin Eye Drops and Compound Sodium Picosulfate Granules, both classified as having passed consistency evaluation.
    • These approvals deepen SSY Group’s ophthalmic and gastrointestinal product lineup, potentially strengthening its position in specialist hospital and pre-procedure medication markets.
    • We’ll now examine how the NMPA approvals, particularly the Levofloxacin Eye Drops, could influence SSY Group’s broader investment narrative.

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    What Is SSY Group's Investment Narrative?

    For SSY Group, the big picture you need to believe in is a recovery story for a profitable but recently pressured injectable and specialty pharma manufacturer, trading well below some HK$6.44 fair value estimates and with a share price that has lagged both the Hong Kong market and pharma peers. The December NMPA approvals for Levofloxacin Eye Drops and Compound Sodium Picosulfate Granules fit neatly into the existing catalyst of pipeline execution, but they do not by themselves offset the sharp revenue and earnings drop seen in 2025 or the recent dividend trim. In the short term, the news helps confidence around product breadth in ophthalmology and pre‑procedure care, yet the bigger swing factors still look to be margin recovery, capital allocation discipline, and governance concerns such as low board independence and rising CEO pay against falling earnings.

    However, one governance issue in particular is something investors should not overlook. Despite retreating, SSY Group's shares might still be trading above their fair value and there could be some more downside. Discover how much.

    Exploring Other Perspectives

    SEHK:2005 1-Year Stock Price Chart
    SEHK:2005 1-Year Stock Price Chart
    Three fair value views from the Simply Wall St Community sit between HK$3.99 and about HK$6.44, underlining how far opinions can spread. You are weighing those against a business facing weaker recent margins, slower forecast revenue growth than the wider Hong Kong market, and governance questions that could influence how much of any operational improvement ultimately reaches shareholders.

    Explore 3 other fair value estimates on SSY Group - why the stock might be worth over 2x more than the current price!

    Build Your Own SSY Group Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Searching For A Fresh Perspective?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.