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<Research> BOCOM International Raises Hengrui Pharma (01276.HK) TP to HKD74; 1Q Results Sustain Strong Growth Momentum
Recommend 5 Positive 6 Negative 2 |
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BOCOM International published a report stating that Hengrui Pharma (01276.HK) sustained last years strong growth momentum in the first quarter. Innovative drugs, particularly non-oncology products, recorded rapid volume expansion, accounting for more than 60% of total product sales, indicating that the companys innovative transformation has largely succeeded. The company continued to advance R&D efficiently, with multiple pipeline projects achieving positive progress. Data readouts for its ADC products at the ASCO conference are highly anticipated. The report noted that Hengrui Pharmas first-quarter revenue and net profit excluding non-recurring items increased by 13% YoY and 17% YoY, respectively, slightly exceeding the brokers previous expectations. Sales revenue from innovative drugs surged 26% YoY, with their contribution to total product sales rising to above 60% (61.7%). Among them, non-oncology products delivered outstanding performance, with sales revenue soaring 92% YoY, benefiting from approvals of multiple products, newly added medical insurance coverage and accelerated hospital penetration. Revenue from generic drugs declined 7%, affected by centralized procurement and the companys strategic reduction in investment. First-quarter BD income amounted to RMB787 million, mainly from the upfront payment for its cooperation with GSK (PDE3/4), as well as revenue recognized based on R&D progress for 11 other assets. For the full year, the company expects to recognize USD250 million out of a total USD500 million upfront payment. Based on the first-quarter performance, BOCOM International raised its profit margin forecasts for 2026 to 2028 and lifted its net profit forecasts by 3% to 4%. The broker considered the companys current valuation reasonable, raised the TP to HKD74 and maintained a Neutral rating. (ha/j) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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