UBS lowers AKESO's target price to 173.4 yuan, performance in the second half of last year was below expectations

UBS published a research report indicating that Akeso (09926.HK) saw a 50% year-on-year revenue growth in the second half of last year, reaching RMB 1.64 billion (same below), which was lower than the bank's and market expectations. The net loss widened from RMB 276 million in the same period last year to RMB 543 million, also falling short of the bank's and market expectations. For the full year of 2025, revenue is expected to grow by 44% year-on-year to RMB 3.1 billion, with the net loss expanding from RMB 500 million in 2024 to RMB 1.1 billion.

Based on the performance in the second half of 2025, the bank has lowered its revenue forecasts for 2026 and 2027, while raising its sales and R&D expense forecasts, resulting in a downward revision of the earnings per share forecast from RMB 1.14 and RMB 2.73 to a loss of RMB 0.12 and a profit of RMB 1.06. The target price has been lowered from HKD 196.5 to HKD 173.4, maintaining a "Buy" rating