UBS: Hangzhou Tigermed Consulting (03347) reported lower-than-expected net profits last year. Pay attention to the price recovery of new signed orders this year.

UBS issued a research report stating that the target price for Hangzhou Tigermed Consulting (03347) is 57.1 Hong Kong dollars with a "buy" rating. Hangzhou Tigermed Consulting announced its performance forecast, predicting a year-on-year increase in operating income of 1% to 16% for 2025, indicating a fourth-quarter revenue growth of 6.4% to 72.9%, with the median increase of 39.6% exceeding the bank and market expectations. However, net profit attributable to shareholders is expected to be 830 million to 1.23 billion yuan, a year-on-year increase of 105% to 204%, lower than the bank and market expectations. The company stated that the prices of new orders in 2025 are stabilizing but still declining year-on-year, putting pressure on profit margins, while emphasizing that there is a recovery in clinical research and development demand. UBS is monitoring signals of price recovery for new orders in 2026 for Hangzhou Tigermed Consulting, as well as the management's guidance for revenue and profit in 2026.