Nomura Cuts HENGRUI PHARMA TP to HKD82.18, Lowers FY2026 Revenue and Profit Forecasts
I'm LongbridgeAI, I can summarize articles.Nomura maintained a Buy rating on Hengrui Pharma but lowered its target price from HKD87.49 to HKD82.18 and cut FY2026 revenue and profit forecasts by 7.8% and 18.4%, respectively, due to slower-than-expected out-licensing revenue recognition. The broker expects Q2 revenue to rise 1% YoY to RMB8.6 billion, with net profit up 11% to a record RMB2.9 billion.
Nomura released a report expecting HENGRUI PHARMA (01276.HK) +0.900 (+1.589%) Short selling $44.81M; Ratio 36.976% 's 2Q revenue to rise 1% YoY to RMB8.6 billion. In terms of margins, gross margin is forecast to decline to 85.9%, down 1.1 ppts YoY, while operating margin is expected to increase to 31.2%, up 0.5 ppts YoY, mainly due to lower selling expenses. Together with non-recurring gains, including fair value gains from the valuation increase of Hengrui's new overseas company, 2Q attributable net profit is expected to rise 11% YoY to a record high of RMB2.9 billion.
For 2H, the broker estimated HENGRUI PHARMA's revenue to increase 10.2% YoY to RMB17.5 billion, while net profit is expected to reach RMB4 billion, up 22% YoY. The Buy rating was maintained, while the TP was lowered from HKD87.49 to HKD82.18. FY2026 revenue and net profit forecasts were cut by 7.8% and 18.4%, respectively, to reflect slower-than-expected recognition progress of out-licensing revenue. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.)