UBS has released a research report stating that it has raised its long-term sales forecast for Hengrui Pharma (01276) based on its first-quarter 2026 performance, citing progress in research and development. The target price has been increased from HK$91 to HK$97.4, while the "Buy" rating is maintained. In the first quarter, Hengrui Pharma's revenue grew by 13% year-on-year to RMB 8.14 billion, slightly below market expectations of RMB 8.53 billion and the bank's projection of RMB 8.81 billion. Net profit rose by 21.8% to RMB 2.28 billion, broadly in line with market expectations of RMB 2.18 billion and the bank's estimate of RMB 2.33 billion. The gross profit margin for the first quarter increased by 1.4 percentage points year-on-year to 86.6%, while the net profit margin rose by 2 percentage points to 28%. R&D investment in the first quarter reached RMB 2.22 billion, of which RMB 1.65 billion was expensed. The sales expense ratio decreased by 0.3 percentage points to 27%.
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