HK Stock Market Move | ADICON HOLDINGS (09860) closes up more than 25%, Fu Rui Financial maintains "buy" and assigns a target price of HK$7.

On Tuesday, ADICON HOLDINGS (09860) surged in mid-day trading, closing up 25.75% for the day. On the news front, on March 30th, the investment bank, FURUI Financial, maintained a "buy" rating for ADICON HOLDINGS in its research report, updating the target price to 7.00 Hong Kong dollars, which represents a 104% increase from the previous day's closing price of 3.43 Hong Kong dollars. The bank pointed out in the report that ADICON is focusing on AI as a core direction in its development in Independent Clinical Labs (ICL). Management is optimistic about the growth prospects in the next 3-5 years, expecting the revenue split between ICL business and Contract Research Organization (CRO, i.e. acquired CrownBio) business to reach 50:50. By the 2025 fiscal year, the company is forecasted to achieve revenue of 2.6 billion RMB and a net profit of 18.4 million RMB. AI is a key strategic focus for ADICON: (1) AI doctor assistant "Xiao Ai" is embedded in the cellular analysis, diagnosis, and reporting process, serving 4 million patients and 150,000 doctors, while also introducing the clinical large language model "Wen Yi" integrated into the entire diagnosis and treatment process; (2) Efficiency has significantly improved after internal AI deployment, with a 90% reduction in manual review volume and an 86% decrease in customer complaints; (3) About 10 minutes for AI-assisted image reading: AI coverage rate exceeds 60%, with accumulated image readings reaching 13 million; In addition, ADICON has 20 years of clinical testing data and has acquired rich pre-tumor data through the acquisition of CrownBio, forming a data barrier.