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Chinese medicine growth likely outpacing its medical distribution business, says Morningstar's Yurou Zheng in a note. Both companies are likely to be hindered by industry developments such as prices being squeezed by tight public spending budgets and competition from e-commerce companies, he says. \"We don't expect either to be able to add higher value-added medicines to their distribution business that quickly to shore up profitability,\" he adds. Morningstar maintains its fair-value estimates on Sinopharm and CR Pharma at HK$24.60 and HK$5.80, respectively. Sinopharm last traded at HK$19.42; CR Pharma was last at HK$5.13. 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