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<Research>UBS Keeps Buy on HENGRUI PHARMA, Adds TP to HKD97.4
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According to a report from UBS, HENGRUI PHARMA (01276.HK) recorded 1Q revenue of RMB8.14 billion, up 13% YoY, shy of market expectations of RMB8.53 billion and the broker's forecast of RMB8.81 billion.

HENGRUI PHARMA's net profit increased by 21.8% to RMB2.28 billion, broadly in line with market expectations of RMB2.18 billion and UBS' forecast of RMB2.33 billion. Gross margin for 1Q26 rose by 1.4 ppts YoY to 86.6%, while net margin increased by 2 ppts to 28%.

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UBS lifted HENGRUI PHARMA's target price to HKD97.4 from HKD91, with a Buy rating remaining in place.
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