Haitong International: Maintains Outperform rating for Kangji Medical (00867.HK) with a target price of HK$18.38.

According to the Wisdom Financial APP, Haitong International released a research report stating that it has slightly adjusted Kangzhe Pharmaceutical Industry (00867.HK) 2025-26E revenue expectations to 8.33/9.30 billion yuan, a year-on-year increase of +11.5%/+11.6%; considering the company's R&D investment in innovative transformation and investment in the promotion of innovative drugs, the bank slightly adjusted 2025-26E net profit attributable to the parent company to 1.67/1.88 billion yuan, a year-on-year increase of +3.4%/+12.9%. Considering that the company may list Demei Medicine at the end of the year, the bank will use the discounted cash flow (DCF) model and cash flow from FY26-FY35 for valuation to better reflect the long-term value of Demei Medicine's pipeline cash flow. Based on WACC 7.9%, perpetual growth rate 2.0%, the corresponding target price is 18.38 Hong Kong dollars (+85%, originally based on 14xPER in 2025), and maintained an "outperform" rating.