Nomura Downgrades Hansoh Pharmaceutical to 'Hold' with Target Price Raised to HK$15.03

Nomura issued a research report, downgrading Hansoh Pharma (03692) from "Buy" to "Hold," while raising the target price by 15.5% from HK$13.01 to HK$15.03.

The bank believes that the valuation has incorporated the transaction of out-licensing ADC drugs. The revenue forecasts for the fiscal years 2023 and 2024 have been raised by 4.1% and 9.7%, respectively, mainly due to: 1) upfront payments from the two ADC drug assets licensed to GSK; 2) the inclusion of new drugs in the 2024 National Reimbursement Drug List.

The report stated that the revenue forecasts for the company's fiscal years 2023 and 2024 are 1% and 3% higher than institutional estimates, respectively. Considering the high-profit advance payments, the net profit forecasts for 2023 and 2024 have been raised by 17.7% and 28.5%, respectively, surpassing the average institutional predictions.

Editor: Shi Lijun