Nomura raises HANSOH PHARMA's target price to 37.87 yuan, upgrading revenue and earnings estimates

Nomura published a research report indicating that HANSOH PHARMA (03692.HK) is expected to achieve a 10% growth in both revenue and profit for the fiscal year 2026. The firm anticipates that HANSOH's revenue in the second half of 2025 will grow by 27% year-on-year to RMB 7.3 billion, slightly higher than the market consensus forecast, which includes a 17% year-on-year increase in drug sales to RMB 6.6 billion, as well as confirmed collaboration revenue of RMB 743 million.

The firm’s forecast takes into account the continued growth in sales of oncology and anti-infection drugs, as well as collaboration with Regeneron Pharmaceuticals. Nomura expects HANSOH PHARMA's profit margins to improve in the second half of 2025, with a gross margin of 91.6% (an increase of 0.8 percentage points year-on-year) and an operating margin of 26.9% (an increase of 3.9 percentage points year-on-year). Overall, the firm expects HANSOH's net profit attributable to shareholders in the second half of 2025 to be RMB 2.1 billion, representing a year-on-year growth of 29.4%.

Nomura has raised its revenue and profit forecasts for the fiscal year 2025 by 1% and 4.7%, respectively, to account for higher collaboration revenue. The firm has increased its target price from RMB 35.5 to RMB 37.87 and maintains a "Neutral" rating