Nomura maintains a Buy rating on HENGRUI PHARMA despite trimming the target price from HKD94.54 to HKD87.49 due to expectations of revenue growth that, while below market expectations for 4Q25, still indicates a positive trajectory. The firm anticipates a 7% year-over-year increase in revenue for 4Q25, driven by a 14% growth in drug sales and significant collaboration revenue from a licensing agreement with GSK. Additionally, Nomura projects substantial growth in net profit attributable to shareholders, with a 32% increase expected for 4Q25 and a 30% increase projected for 2026, both exceeding market expectations. The anticipated expansion in gross and operating profit margins further supports the positive outlook, justifying the Buy rating.

Morgan Stanley

Overweight

maintain

$86 -> $92

2026-01-27

Reason

Morgan Stanley

Price Target

$86 -> $92

2026-01-27

maintain

Overweight

Reason

Morgan Stanley lowered its total revenue forecasts for HENGRUI PHARMA for 2025-2027 by 2.1%, 3.7%, and 1.8% due to lower commercial development income from GlaxoSmithKline (GSK) assets and a decline in contributions from the generic drug business. This was partially offset by higher forecasts for innovative drug sales. Additionally, the broker reduced its net profit forecasts by 7.4%, 8.9%, and 6.5%, respectively. Despite these adjustments, Morgan Stanley raised its target price for HENGRUI PHARMA from $86 to $92 and maintained an Overweight rating, reflecting a positive outlook based on the adjusted valuation and currency assumptions.

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01276 Should I Buy

01276 Should I Buy

Should You Buy HENGRUI PHARMA (01276) Today? Analysis, Price Targets, and 2026 Outlook.

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