Morgan Stanley: Bullish on the strong growth of new orders for Hangzhou Tigermed Consulting (03347), group management remains optimistic about the industry outlook.

Morgan Stanley released a research report stating that Hangzhou Tigermed Consulting (03347) announced its preliminary performance for 2025, with revenue expected to be between RMB 6.66 billion and RMB 7.68 billion, a year-on-year growth of 1% to 16%. This range is lower than Morgan Stanley's estimate of 2% to 12%. Net profit is expected to be between RMB 830 million to RMB 1.23 billion, a year-on-year growth of 105% to 204%. The A-share target price for Hangzhou Tigermed Consulting (300347.SZ) is set at RMB 81, with a "hold" rating. Morgan Stanley stated that the strong profit growth is mainly attributed to the substantial revaluation of Hangzhou Tigermed Consulting's assets and the relatively low base in 2024. Despite the impact of order cancellations and difficulty in receiving payments, the group's performance on a regular basis is weak, but new order growth remains strong. Net new orders on hand excluding cancelled orders are expected to be between RMB 9.5 billion and RMB 10.5 billion, a year-on-year growth of 13% to 25%. Morgan Stanley also mentioned that the group's management remains optimistic about the industry outlook, and in a recent meeting, the management mentioned that the Chinese CRO industry appears to be in a recovery trend.