UBS Reiterates 'Buy' Rating on Hansoh Pharmaceutical (03692.HK), Raises Target Price to HK$22.1

According to the Zhisheng Finance APP, UBS released a research report reaffirming Hansoh Pharma (03692) as its top pick, reiterating a "Buy" rating. The earnings per share forecasts for 2024 to 2026 were raised by 16%, 9%, and 6%, respectively, partially offset by an expected increase in the R&D expense ratio. The target price was raised from HK$20.8 to HK$22.1.

The report stated that the company's performance in the first half of the year exceeded expectations, with sales increasing by 44% year-on-year, surpassing UBS and market consensus forecasts by 5% and 11%, respectively. Net profit surged by 111.5% year-on-year, also exceeding expectations by 32% and 39%. UBS noted a significant improvement in Hansoh Pharma's profitability, with gross margin and operating margin rising by 3 percentage points and 17.6 percentage points, respectively, compared to the same period last year. The bank believes that, given the divergent performance among Chinese pharmaceutical companies, its results are indeed encouraging.