Citi Raises Hansoh Pharmaceutical (03692.HK) Target Price to HK$32, Maintains 'Buy' Rating

According to the Zhitong Finance APP, Citi issued a research report stating that it has raised the target price of Hansoh Pharma (03692) from HK$28.5 to HK$32, maintaining its rating as "Buy." Management forecasts double-digit revenue growth for this year. The bank noted that it has increased its revenue and earnings per share forecasts for this year by 6.9% and 13.8%, respectively, while raising next year's revenue and earnings per share forecasts by 8.3% and 14.9%, respectively.

The bank noted that the company's revenue last year increased by 21.3% year-on-year to RMB 12.3 billion, slightly exceeding the bank's and market expectations by 1% to 2%. Net profit rose by 33.4% year-on-year to RMB 4.4 billion, surpassing the bank’s expectations by 10%. During the period, revenue from innovative drugs and antibody-drug conjugates (ADCs) increased by 38.1% year-on-year to approximately RMB 9.5 billion, with gross margin expanding to 91%.