Citibank: The target price of Hewang Pharmaceuticals (00013) was raised to HK$43.2 and listed as the new preferred stock

The Zhitong Finance App learned that Citibank released a research report saying that the bank held an expert meeting with key SANOVO researchers on November 5 to further strengthen the positive view on the potential of savolitinib for EGFR mutant non-small cell lung cancer after first-line and Osimertinib treatment, maintain a “buy/high risk” rating, and listed Hewong Pharmaceutical (00013) as the new preferred stock. The target price was raised from HK$40.1 to HK$43.2.

The bank believes that based on strong SAFFRON data, the new savolitinib drug application has been submitted in the US and has been accepted in Japan and Europe, and Hewang Pharmaceutical's management expects it to be approved overseas or in the 2027 fiscal year; the bank is optimistic about commercialization prospects and believes that savolitinib can become a billion-dollar major drug, and there is still room for improvement in first-line opportunities.

The bank raised its revenue forecast for the 2027/2028 fiscal year by 4% and 2%, and increased earnings per share by 15% and 5%, mainly reflecting savolitinib's potential overseas approval and epidemiological model adjustments.