Nomura: Downgrade HANSOH PHARMA (03692) to "Hold" Rating, target price raised to 15.03 Hong Kong dollars.

Nomura released a research report stating that they have downgraded their rating on HANSOH PHARMA (03692) from "buy" to "hold", and raised the target price by 15.5% from 13.01 Hong Kong dollars to 15.03 Hong Kong dollars. The bank believes that the valuation already includes the transaction for the out-licensing of ADC drugs. They have raised their revenue forecasts for the fiscal years 2023 and 2024 by 4.1% and 9.7%, mainly due to: 1) the upfront payment for the two ADC drug assets licensed to GSK by the company; 2) the addition of new drugs to be included in the National Medical Insurance Catalog in 2024. The report stated that the revenue forecasts for the company's fiscal years 2023 and 2024 are 1% and 3% higher than those of other institutions, considering the high-profit upfront payment. They have raised their net profit forecasts for 2023 and 2024 by 17.7% and 28.5%, surpassing the average forecast of other institutions.