Morgan Stanley: Raises RemeGen's target price to HKD 77 and upgrades rating to Neutral
JP Morgan released a research report stating that it has lowered the product revenue forecasts for RemeGen (09995) for 2025 and 2026 to reflect the latest performance, while raising the licensed revenue forecast. With the improvement in profit margins and reduction in operating expenses, the bank expects the net loss for 2025 and 2026 to narrow, thus raising the target price for H shares from HKD 73 to HKD 77, with the rating upgraded to Neutral; the target price for A shares is raised from RMB 86 to RMB 92, maintaining a "Neutral" rating. The bank noted that RemeGen's performance in the third quarter was mixed, with product revenue lower than expected, but profit margins and operating expense control were better than expected, reflecting the company's ongoing cost optimization. Notably, after signing the RC18 licensing agreement with VorBio in June, the company's R&D expenses decreased by 30% year-on-year and 24% quarter-on-quarter; administrative expenses also fell by 23%, continuing the positive momentum from previous quarters
According to Zhitong Finance APP, JP Morgan has released a research report stating that it has lowered the product revenue forecasts for RemeGen (09995, 688331.SH) for 2025 and 2026 to reflect the latest performance, while raising the licensed revenue forecast. With improvements in profit margins and reductions in operating expenses, the bank expects the net loss for 2025 and 2026 to narrow, thus raising the target price for H-shares from HKD 73 to HKD 77, with the rating upgraded to Neutral; the target price for A-shares is raised from RMB 86 to RMB 92, maintaining a "Neutral" rating.
The bank stated that RemeGen's performance in the third quarter was mixed, with product revenue lower than the bank's expectations, but profit margins and operating expense controls were better than expected, reflecting the company's ongoing cost optimization. Notably, after signing the RC18 licensing agreement with VorBio in June, the company's R&D expenses decreased by 30% year-on-year and 24% quarter-on-quarter; administrative expenses also fell by 23%, continuing the positive momentum from previous quarters
