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Nomura Keeps Buy on HENGRUI PHARMA But Pares TP to HKD87.49; 2026 NP Expected to Surge 30%
2026-02-16 11:24:29
Nomura expects HENGRUI PHARMA (01276.HK) to achieve a 7% YoY increase in 4Q25 revenue to RMB8.3 billion, below the market expectation of RMB9.5 billion. Drug sales are anticipated to grow by 14% YoY, with collaboration revenue reaching RMB843 million, primarily from a licensing agreement with GSK.

During the period, the gross profit margin is estimated to expand by 0.6 ppts YoY to 86.5%, and the operating profit margin is projected to expand by 1.8 ppts to 24.2%. As a result, Nomura projects a 32% YoY increase in net profit attributable to shareholders to RMB2.3 billion.

Looking ahead to 2026, Nomura forecasts HENGRUI PHARMA's revenue to grow by 18% to RMB37.2 billion, slightly above market expectations, with drug sales increasing by 9% YoY and external licensing revenue contributing RMB6 billion. Coupled with expectations that the gross profit margin and operating profit margin will expand to 87.3% and 30.1% YoY, respectively, HENGRUI PHARMA's net profit is projected to grow by 30% YoY to RMB11.2 billion, exceeding market expectations of a 13% increase.

Nomura has trimmed HENGRUI PHARMA's target price from HKD94.54 to HKD87.49 but kept the Buy rating unchanged.
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