Zhongjin: Raise Hehuang Pharmaceutical's net profit forecast for this year, rating "Outperform Industry"

Zhongjin published a research report stating that Hutchison Pharma's revenue in fiscal year 2025 was $549 million, a 13% year-on-year decrease; of which, the comprehensive revenue of the oncology immunotherapy sector was $285 million; net profit attributable to shareholders was $457 million, excluding the impact of selling shares of Shanghai Hutchison, the net profit was approximately $41 million, in line with expectations. The company forecasts the comprehensive revenue of the oncology immunotherapy sector in 2026 to be between $330 million and $450 million, slightly exceeding expectations, mainly due to potential research and development revenue possibly exceeding expectations. The bank stated that considering the company's continuous improvement in operational efficiency and profitability, it raised its net profit forecast for this year by 59% to $55.39 million, with a forecast of $88.91 million for 2027. The bank has a target price of HK$30 for the stock and a "outperform" rating.