CLSA Maintains 'Outperform' Rating on Hansoh Pharmaceutical (03692.HK) with Target Price Reduced to HK$40

CLSA CITIC releases a research report stating,Hansoh Pharma(03692) Strong performance in the second half of 2025, surpassing market expectations. Maintaining a "Buy" rating for Hansoh Pharma based on valuation benchmark adjustments, but lowering the target price from HKD 43.1 to HKD 40, a decrease of 7.2%.

The bank pointed out that the company expects both product sales and collaboration project revenue to achieve double-digit growth. Looking ahead, innovation-driven drug growth and licensing income are expected to continue as the main growth drivers for the company in 2026. The bank believes this year will be a "bumper year" for the company, with key data releases anticipated from multiple clinical trials, and several new drug applications expected to accelerate the conversion of pipeline value into profit potential.

The bank cut its net profit forecast for the company from 2026 to 2028 by 6% to 12% to reflect stabilized licensing revenue and increased R&D spending, as the company will initiate more Phase III clinical trials during the same period. The bank forecasts that the company's revenue growth in 2026, 2027, and 2028 will be 14%, 10%, and 14%, respectively, with net profit growth at 9%, 12%, and 16%, respectively.