CICC: Maintaining SINO BIOPHARM (01177) "Outperform" rating with a target price of 8.9 Hong Kong dollars.

China International Capital Corporation (CICC) released a research report stating that SINO BIOPHARM (01177) will maintain a target price of 8.9 Hong Kong dollars and a "outperform" rating. The company also maintains its adjusted net profit forecast for 2025 and 2026 at 4.47 billion yuan and 4.92 billion yuan respectively, with an introduction of a forecast of 5.423 billion yuan for 2027. The report stated that the company announced a 100% acquisition of Hegia Biosciences for 1.2 billion yuan. Hegia Biosciences focuses on the siRNA field, with a key focus on the three major chronic disease areas of weight loss metabolism, cardiovascular and cerebrovascular, and nervous system, and its core platform has a competitive advantage. The report also mentioned that there are generally limitations in the existing therapies for chronic diseases, such as efficacy limitations, safety risks, and low patient compliance, leaving a huge unmet clinical need. This acquisition is expected to help SINO BIOPHARM build the next generation of cardiovascular treatment innovation pipeline, improve its layout in the weight loss metabolism field; and its well-established research and development system and sales channels are expected to rapidly advance Hegia Biosciences' clinical efficacy and subsequent commercialization, leading to mutually beneficial cooperation for both parties.