CLSA Raises Target Prices for Hansoh Pharma (03692.HK) and Consero Pharma (00867.HK), Citing Sustained Growth Momentum in Chinese Pharma Sector

Intelligent Finance APP learned that CLSA issued a research report stating that three mainland pharmaceutical companies, including Sino Biopharm (01177), Hansoh Pharma (03692), and CMS (00867), all recorded robust performance in the first half of the year, achieving double-digit revenue growth in the second half of 2024 and the first half of 2025. The firm expects this momentum to continue into the second half of 2025, driven by factors such as more innovative drug launches, increased sales of new products, a more favorable healthcare spending environment in mainland China, and potential business development (BD) income.

In terms of shares, the bank reiterated its "Outperform" rating for Sino Biopharm, maintaining the target price at HKD 9.2. It is expected that the company's revenue growth will accelerate, increasing by 12%, 15%, and 16% from 2025 to 2027 respectively. The profit margin is also anticipated to grow due to the increased contribution from innovative drug revenues.

In addition, the bank reiterated its "Outperform" rating for Hansoh Pharma, raising the target price from HK$27.8 to HK$43.1. It increased its revenue forecast for 2025-27 by 19%-29% and net profit forecast by 10%-29%, based on the expectation that innovative drug growth could surpass forecasts and higher BD business revenue.

At the same time, the bank reiterated its "Outperform" rating for CMS, raising the target price from HK$10 to HK$15.6. It increased revenue forecasts for 2025-27 by 0% to 2% and net profit forecasts by 3% to 6%, due to better-than-expected performance in the first half of this year.