BOCI Raises PHARMARON TP to HKD26, Maintains Buy
I'm LongbridgeAI, I can summarize articles.BOCI has raised its target price for PHARMARONfrom HKD25 to HKD26, maintaining a Buy rating. The company reported a 15.5% YoY revenue increase to RMB3.58 billion in 1Q26, with adjusted net profit up 16.2% YoY. Newly signed orders rose over 30% YoY, driven by strong demand for laboratory services and small-molecule CDMO. BOCI also increased its revenue forecasts for 2026 and 2027 by 3.6% and 6.5%, respectively, citing faster project conversion. Despite trading at a discount compared to peers, PHARMARON's profitability is improving as CDMO contributions rise.
BOCI issued a report stating that PHARMARON (03759.HK) -0.640 (-2.947%) Short selling $5.57M; Ratio 5.772% recorded revenue of RMB3.58 billion in 1Q26, up 15.5% YoY, while adjusted net profit increased 16.2% YoY. Newly signed orders rose by more than 30% YoY, of which laboratory services grew by over 20% and small-molecule CDMO expanded by more than 50%. Management maintained its full-year revenue growth target of 1218%.
BOCI raised its revenue forecasts for PHARMARON for 20262027 by 3.6% and 6.5%, respectively, reflecting faster project conversion driven by accelerating new orders and robust demand for small-molecule CDMO services. Adjusted profit is expected to remain broadly stable in the near term. The broker slightly lifted its TP from HKD25 to HKD26, implying 20x 2026 PE, broadly in line with WuXi AppTec. Compared with high-growth CDMO peers such as Asymchem, the company still trades at a discount, mainly due to its relatively weaker positioning in new molecule deployment. Considering that the company is in a phase of rising CDMO contribution and improving profitability, BOCI maintained its Buy rating. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 12:25.)
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