Lyon: Raise Hangzhou Tigermed Consulting (03347) target price to 57.2 Hong Kong dollars, reiterating the "outperform" rating.

Lyon issued a research report stating that 2026 will be a turning point for the Chinese biotechnology industry. Hangzhou Tigermed Consulting (03347) remains the top choice for investing in innovative drugs in China. Based on the latest industry and company forecasts, Lyon has raised the target price for Hangzhou Tigermed Consulting from 52.1 Hong Kong dollars to 57.2 Hong Kong dollars, and reiterated a "outperform" rating. Lyon believes that in 2026, this sector will present two major development directions, including: 1) The Chinese clinical CRO industry will reach a turning point after integration, and more reasonable pricing will drive industry profit margin recovery; 2) H-share innovative drug sector will strengthen, supporting the exit performance of Hangzhou Tigermed Consulting's investment portfolio. Lyon has rolled over Hangzhou Tigermed Consulting's valuation benchmark to 2027, expecting profit growth of 7% to 12% for Hangzhou Tigermed Consulting from 2026 to 2027, and believes that investment returns will be more predictable and sustainable.