HSBC Research Keeps PHARMARON at Buy, Expects Strong CDMO Growth to Offset FX Pressure
I'm LongbridgeAI, I can summarize articles.HSBC Research maintains a Buy rating on Pharmaron, raising its target price to HKD30.8 from HKD28.2. The broker expects strong CDMO growth of over 25% in 2026, driven by project conversion and commercial production, which will offset FX pressure on laboratory services. While full-year gross margin forecasts were lowered slightly due to FX impacts, resilient demand supports continued revenue growth.
HSBC Global Investment Research issued a research report saying that PHARMARON (03759.HK) +0.320 (+1.279%) Short selling $36.63M; Ratio 4.936% 's positive profit alert for the interim period showed revenue growth of 16% to 19% YoY during the period, broadly in line with the broker's expectations. Net profit increased 4% to 10% YoY, slightly below expectations, mainly due to a greater-than-expected impact from foreign exchange factors on the gross margin of laboratory services.
The broker expects resilient demand and order execution in PHARMARON (03759.HK) +0.320 (+1.279%) Short selling $36.63M; Ratio 4.936% 's CDMO business to continue, with full-year 2026 revenue expected to grow 16.4%. It lowered its full-year gross margin forecast by about 0.8 ppts to 34.4% to reflect FX pressure. For the CDMO business, the broker expects full-year 2026 CDMO revenue growth of more than 25%, benefiting from strong project conversion, increased contribution from commercial production and healthy customer demand. Meanwhile, improved operating efficiency is expected to bring about gross margin expansion of around 1 ppt, partially offsetting the negative foreign exchange impact on laboratory services. The clinical services business is expected to record only low-single-digit revenue growth.
The broker raised its TP from HKD28.2 to HKD30.8 and maintained the Buy rating.(gc/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-15 16:25.)