UBS has released a research report noting that HUTCHMED (00013)'s first-half revenue increased by 0.2% year-on-year, broadly in line with the bank's expectations. Revenue from its oncology and immunology business grew 13% year-on-year, outperforming projections. Net profit for the period was $15.9 million, compared to $455 million in the same period last year, which was primarily due to the recognition of a one-time gain from the sale of a joint venture with Shanghai Pharmaceuticals during the prior period.
The bank has postponed its milestone expectations for AstraZeneca to 2027 and revised its expense forecasts. This has led to a downward adjustment of its 2026 earnings per share estimate, while the 2027 forecast has been increased from $0.06 to $0.08. Consequently, UBS has lowered the target price for HUTCHMED from HK$29.7 to HK$29.5, while maintaining a "Buy" rating.
Comments