G Sachs published a report stating that CMS (00867.HK) -0.240 (-2.044%) Short selling $19.00M; Ratio 48.043% 's revenue for 1H26 was RMB4.5 billion, up 12.5% YoY, below the broker's expected growth of 18%. The three core VBP products performed better than expected. Despite slower revenue growth, net profit still rose 5% YoY to RMB986 million, broadly in line with the broker's expectations, mainly due to lower-than-expected selling expenses, which were flat YoY and declined from 35.6% of sales to 32%. R&D expenses increased 76% YoY as the company continued to expand its internal innovation pipeline, adding 10 to 15 new projects annually. Amid a challenging industry environment marked by ongoing anti-corruption measures and medical insurance cost controls, management moderately lowered its full-year revenue growth guidance from above 20% to 15%-20%, while emphasizing upside potential for earnings from investment income in 2H26.

Following the results and adopting a more conservative view on sales growth prospects under the challenging environment, G Sachs lowered its earnings forecasts for 2026-2028 by 3.3%, 4.2% and 9.4%, respectively. The broker cut the TP from HKD19.5 to HKD17.96 and maintained the Buy rating. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-19 12:25.)