UBS: Upgrade rating of Stone Pharmaceutical Group (01093.HK) to "buy", valuation does not yet reflect the AI drug research and development capabilities.

Zhixin Financial APP learned that UBS released a research report stating that Stone Pharmaceutical Group (01093.HK) is a pioneer in AI drug research and development (AIDD) among leading pharmaceutical companies. In terms of total transaction value, it is also the world's largest external licensing party for AIDD platforms. The bank believes that Stone Pharmaceutical's leading position in cutting-edge technologies such as AI has not been fully reflected in its valuation. With a series of external licensing (BD) transactions landing, the downward risk of its traditional business has been largely reflected, and it is expected that the company's organic revenue in 2026 (excluding licensing revenue) will resume growth by 3.8% year-on-year (compared to a 16.5% decline year-on-year last year). UBS has upgraded Stone Pharmaceutical's rating from "Neutral" to "Buy" and maintains a target price of 10.9 Hong Kong dollars.