UBS: Lower HUTCHMED (00013) target price to HK$36.9, rating "buy"

UBS released a research report stating that Hutchmed (00013) has lowered its guidance for oncology drug revenue this year to $270 million to $350 million. The bank mentioned that it will lower the company's revenue forecast for 2025 to 2027, with the H-share target price reduced from HK$37.7 to HK$36.9, while maintaining its "buy" rating. The bank stated that the company's mid-term revenue fell by 9.2% to $278 million, below the bank's expectations, with oncology/immunology revenue at $143.5 million, lower than expected, and net profit at $455 million, mainly due to the completion of the SHPL disposal, lower than expected. Research and development expenses decreased by 24.4% to $72 million. Due to the restructuring of the marketing team, selling expenses decreased by 49.3% to $13.9 million. The bank noted that as of the first half of this year, the company's cash reserves were strong at $1.4 billion, compared to $836 million at the end of last year. UBS mentioned several potential catalysts for the company in the future, including (1) active preparation for negotiations on the potential inclusion of multiple candidate products in the National Drug Reimbursement List (NDRL); Fruquintinib approved for second-line renal cell carcinoma in mainland China (expected in the middle of next year); and the resubmission of Sovleplenib (expected in the second quarter of next year).