BOC International: Lowering the target price of Rongchang Biotech (09995) to HK$128 to maintain a “buy” rating

The Zhitong Finance App learned that BOC International released a research report stating that the target price of Rongchang Biotech (09995) was lowered to HK$128 to maintain the “buy” rating. The bank drastically raised the company's 2026 foreign licensing revenue forecast, raised the 2026 revenue forecast, and lowered the 2027-2028 revenue forecast, mainly reflecting the latest confirmed pace of revenue from external licensing transactions, as well as adjustments to product sales forecasts based on first-quarter to third-quarter results. Since the profit margin of the foreign licensing business was significantly higher than product sales, the increase in the revenue forecast for this business directly led to a significant improvement in overall profit expectations.

The bank pointed out that Rongchang Biotech's product sales accelerated in the third quarter, and profits continued in the single quarter. Management expects overall operations to continue to be good in the fourth quarter, and is confident that the goal of achieving the balance between profit and loss of basic business throughout the year is achieved. Furthermore, BOC International indicated that the global development of the company's core pipeline will enter a harvest period in 2027.