Nomura Maintains 'Neutral' Rating on Hansoh Pharmaceutical (03692.HK), Raises Target Price to HK$17.95

According to the Zhitong Finance APP, Nomura released a research report, giving Hansoh Pharma (03692) a "Neutral" rating, and raising the target price from HK$17.23 to HK$17.95.

The report pointed out that Hansoh Pharma's interim performance exceeded expectations, with revenue increasing by 44.2% year-on-year to RMB 6.5 billion, which was 4.3% and 14.6% higher than the bank's and market expectations respectively. This was mainly due to the increase in revenue from innovative drugs and a cooperation income of 185 million US dollars. Excluding the cooperation income, the revenue for the period increased by 14% year-on-year.

As for Hansoh Pharma, its net profit in the first half of the year increased by 116.6% to RMB 2.7 billion, which is 16.4% and 42.3% higher than the bank's and market expectations respectively. This was mainly due to accelerated revenue growth and reduced sales expenses. In addition, the company’s gross margin in the first half of the year increased by 3 percentage points year-on-year to 91.1%, mainly driven by high-margin cooperative income.