Goldman Sachs: Lowered the target price of Hangzhou Tigermed Consulting (03347) to 59.4 Hong Kong dollars, while maintaining a "buy" rating.

Goldman Sachs released a research report stating that it has lowered the profit forecast for Hangzhou Tigermed Consulting (03347, 300347.SZ) for the years 2026 to 2028 by 12%, 1%, and 4%, reflecting an increase in AI investment. The target price for Hangzhou Tigermed Consulting's H shares has been lowered from 61.4 Hong Kong dollars to 59.4 Hong Kong dollars, and the target price for A shares has been lowered from 76.2 Chinese yuan to 75.2 Chinese yuan, both maintaining a "buy" rating. The report stated that Hangzhou Tigermed Consulting's first quarter revenue increased by 15.2% year-on-year to 1.8 billion Chinese yuan, higher than the bank's expectations, benefiting from the recovery of clinical trial services driven by domestic innovative drug research and development activities. However, the adjusted net profit for the period was 120 million Chinese yuan, lower than the bank's expected 140 million Chinese yuan, mainly due to slower than expected gross margin recovery, with the overall gross margin affected by the execution of old contracts, exchange rate factors, and continued price pressure on some businesses, dropping to 26.6%.