UNITED LAB's stock price plummeted 5.06% during intraday trading on Thursday, following the release of a research report from UBS.
The decline comes after UBS adjusted its forecasts for the company, reducing its target price from HK$18.9 to HK$17.6 while maintaining a "Buy" rating. The adjustment was made following UNITED LAB's full-year 2025 results, which showed a 4% year-on-year decline in revenue to RMB 13.2 billion and a 21.6% drop in net profit to RMB 2.1 billion. The second half performance was particularly weak, with net profit plunging 84% year-on-year to RMB 192 million.
UBS noted that the company's key candidate drug, UBT251, is progressing in global development, but management has guided for significant expenditures ahead, with R&D spending expected to exceed RMB 1 billion and capital expenditures of RMB 1.8 billion for the current year.
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