Stock Analysis: Hyphens Pharma | Lianhe Zaobao

Hyphens Pharma recommends increasing holdings, with a target price raised to 0.43 yuan, closing price at 0.305 yuan (+5.17%). The company's net profit in the first half of the year decreased by 69% year-on-year to 1.7 million yuan, mainly due to a 2.2 million yuan inventory write-down reserve and a 2 million yuan foreign exchange loss. Despite rising employee costs, gross profit reached a new high supported by the gross profit margin. The company stated it will strive to expand its product portfolio and improve gross profit margins, but must be cautious of inventory write-offs and foreign exchange loss risks