Guangda Securities: Initiates "Buy" rating on Kangchen Pharmaceutical (01681.HK) with a target price of HK$17.73.

According to the Wisdom Finance app, Guotai Junan Securities released a research report stating that it is initiating coverage of Kangchen Pharmaceutical (01681.HK) for the first time, with a "buy" rating and a target price of HK$17.73. The bank predicts that the company's net profit attributable to shareholders for the years 2026-2028 will be 1.25/1.41/1.61 billion yuan, with year-on-year growth of 15.5%/13.4%/13.8%. The current stock price corresponds to a PE ratio of 7.4/6.5/5.7 times. The bank believes that Kangchen Pharmaceutical is the leader in the Chinese patent medicine industry, with steady and diversified growth, high dividend yield and undervaluation, and it is waiting for the valuation to be repaired.