HK Stock Market Move | Hangzhou Tigermed Consulting (03347) rose over 4% with strong new orders. Management remains optimistic about the prospects of the CRO.

Hangzhou Tigermed Consulting (03347) rose more than 4%, as of the time of publication, it rose by 4.04%, closing at HK$52.8, with a trading volume of HK$242.877 million. In terms of news, Hangzhou Tigermed Consulting recently announced a profit surge. Goldman Sachs pointed out that the company is expected to have revenue between RMB 6.66 billion and 7.68 billion in 2025, higher than both the bank's and market's expectations. Goldman Sachs continued to see the company as a major beneficiary of the structural growth opportunities in the Chinese clinical CRO industry, expecting business development (BD) activities and financing environment to recover from 2025 onwards, driving domestic clinical demand. Potential increases in concept validation (POC) trials for multinational pharmaceutical companies in China could provide further upside, with significant contract conversions potentially starting to become apparent from the first half of 2026. Morgan Stanley released a report stating that Hangzhou Tigermed Consulting's strong profit growth is mainly attributed to the significant revaluation of Hangzhou Tigermed Consulting's assets, as well as the relatively low base in 2024. Despite the impact of order cancellations and payment difficulties on the group's recurring income performance, the company's new order growth remains strong. After deducting cancelled orders, the net new order backlog is estimated to be between RMB 9.5 billion and 10.5 billion, an increase of 13% to 25% year-on-year. Morgan Stanley further stated that the group's management remains optimistic about the industry outlook, and during a recent meeting, management mentioned that the Chinese CRO industry seems to be in a recovery phase.