BOFA: Raises Kangxinuo's target price to HKD 56, reaffirms "buy" rating

Bank of America Securities published a research report stating that Kangji Pharmaceutical's revenue in the first half of the year increased by 31% year-on-year, and net losses narrowed. Due to the growth in sales of MCV4 Menhycia, revenue from meningococcal vaccines increased by 38.4% year-on-year in the first half of the year. Benefiting from the increase in sales of high-profit vaccines and the improvement of production capacity utilization, the gross profit margin of vaccine products in the first half of the year increased to 79.3%, a year-on-year increase of 12 percentage points. The bank raised its earnings forecasts for Kangji Pharmaceutical for the years 2028 to 2034 by 7% to 11%, considering its leading research and development capabilities in multiple technology routes and strong overseas expansion capabilities. It reaffirmed a "buy" rating with a target price raised from HK$43 to HK$56.