UBS: Raises target price for Hua Medicine-B (06990.HK) to HKD 678, with first half profit exceeding expectations.

According to the Zhitong Finance APP, UBS has published a research report stating that the revenue of Kelun-Biotech (06990.HK) in the first half of the year was 978 million yuan, an increase of 3% year-on-year. Product sales amounted to 657 million yuan, a year-on-year increase of 112%, exceeding the bank's expected 550 million yuan, which partially offset the impact of lower licensing income. During the period, the company reported a net profit of 388 million yuan, far surpassing the bank's original estimate of a net loss of 134 million yuan and the market's expectation of a net profit of 128 million yuan. The bank has raised its product sales forecast for Kelun-Biotech this year from 1.38 billion yuan to 1.43 billion yuan, leading to an increase in the expected earnings per share for 2026-2028 to 2.41, 2.09, and 8.29 yuan respectively. The target price has been raised from 667 Hong Kong dollars to 678 Hong Kong dollars, reaffirming a "buy" rating.