Goldman Sachs: Raise target price of Hangzhou Tigermed Consulting (03347) to HK$66.4, expecting order momentum to recover.

Goldman Sachs released a research report stating that the profit forecasts for Hangzhou Tigermed Consulting (03347) for the years 2025 to 2027 were adjusted by -29%, +2%, and +2% respectively. The target price for Hangzhou Tigermed Consulting H shares was raised from 63.4 HKD to 66.4 HKD, and the target price for Hangzhou Tigermed Consulting A shares (300347.SZ) was raised from 78.7 CNY to 82.5 CNY, both with a "buy" rating. Hangzhou Tigermed Consulting announced its profit forecast, expecting revenue in 2025 to be between 6.66 billion and 7.68 billion CNY, higher than the bank's and market's expectations. However, the net profit, ranging from 330 million to 490 million CNY, fell below expectations due to higher-than-expected impairment provisions. The net profit for the period was estimated to be between 830 million and 1.23 billion CNY, also lower than expectations, possibly reflecting timing differences in fair value changes and investment income recognition, with some potentially being deferred to the first quarter of 2026. The bank continues to see the company as a major beneficiary of the structural growth opportunities in the Chinese clinical CRO industry, expecting a recovery in business development (BD) activities and financing environment to drive domestic clinical demand starting from 2025. The potential increase in proof of concept (POC) clinical trials by multinational pharmaceutical companies in China provides further upside potential, with significant contract conversions expected to materialize from the first half of 2026 onwards.