Citibank: Yao Ming Kangde (02359) TIDES and strong order backlog growth maintain a “buy” rating target price of HK$215

The Zhitong Finance App learned that Citi released a research report stating that it maintains the “Buy” rating of Pharmaceutical Kangde (02359), with a target price of HK$215. According to the bank, the company's revenue for the first three quarters of this year was 45.5 billion yuan, up 39% year on year, of which revenue from continuing operations increased 46% year on year; net profit was 19.4 billion yuan, up 61% year on year, and 73% year on year after excluding one-time projects. Adjusted non-IFRS net profit increased 74% year over year to RMB 18.4 billion.

In the third quarter, the company's revenue was RMB 16.6 billion, up 38% year on year; net profit increased 137% year over year to RMB 8.3 billion, and gross margin was 54.7%. Management further raised its 2026 performance guidelines. The total revenue forecast was raised from the previous 58.5 billion yuan to 60.5 billion yuan to 61 billion yuan to 61.9 billion yuan; the year-on-year growth forecast for continuing business revenue was raised from 35% to 39% to 40% to 42%. The capital expenditure guidelines were raised to RMB 8 billion to RMB 8.5 billion, and the adjusted free cash flow is expected to reach RMB 14.5 billion to RMB 15.5 billion. The bank said it will re-examine its views on Pharmaco-Ming Kangde after the October 27 results meeting.