Consun recently announced authorization of 45mn share repurchase program, representing 5.16% of its total issued shares.
The 2019 NRDL update has newly added two of Consun’s exclusive products - iron-dextrin oral solution and kidney repair & edema alleviation granules - into Catalogue B.
We cut TP to HK$8.8 from HK$9.5 as our trimmed 2020E earnings by 3% on weak Yulin and factored in RMB depreciation. We maintain BUY, noting its inexpensive valuation （6x FY19EPER）， attractive FY19E div yld （5%） and new share buyback plan