Daiwa raised the target price of TIGERMED to 45 yuan and reiterated the "Hold" recommendation while adjusting the revenue forecast

Daiwa's research report indicates that TIGERMED (03347.HK) has issued a positive profit alert, expecting a year-on-year revenue growth of 1% to 16% in 2025, reaching RMB 6.66 billion to 7.68 billion (same below), after a decline of 11% in 2024, regaining growth. It is estimated that net profit will increase by 105% to 204% year-on-year, reaching RMB 830 million to 1.23 billion; recurring net profit is expected to decrease by 43% to 61% year-on-year, reaching RMB 330 million to 490 million, mainly due to order cancellations, declining order prices, and increased operating costs related to team expansion.

Looking ahead to 2026, the firm estimates that the company's revenue will grow by 16% year-on-year to approximately RMB 8 billion, with net profit increasing by 14% year-on-year, and net profit margin narrowing by 1 percentage point to 15%.

The firm has raised its revenue forecast for TIGERMED for 2026 to 2027 by 1% to 7%, but lowered the earnings per share forecast for the same period by 8% to 12%, due to a reduction in gross margin and an increase in sales, administrative expenses, and R&D expenses. It maintains a "Hold" rating, with the target price raised from HKD 38 to HKD 45