UBS: TIGERMED's net profit last year was below expectations, focus on the recovery of new order prices this year

UBS research report indicates that TIGERMED (03347.HK) has issued a performance forecast, expecting a year-on-year revenue growth of 1% to 16% for the fiscal year 2025, implying a year-on-year revenue growth of 6.4% to 72.9% in the fourth quarter, with a median increase of 39.6%, exceeding the bank's and market expectations. However, the net profit attributable to shareholders is expected to be between RMB 830 million and RMB 1.23 billion, representing a year-on-year increase of 105% to 204%, which is lower than the bank's and market expectations.

The company stated that the prices of new orders signed in 2025 are stabilizing but still declining year-on-year, putting pressure on profit margins. The company also emphasized that the demand for clinical research and development is recovering. UBS is focused on the signals of price recovery for new orders signed by TIGERMED in 2026, as well as management's guidance on revenue and profits for 2026. A target price of HKD 57.1 and a "Buy" rating are now given