01276 Should I Buy

Nomura maintains a Buy rating on HENGRUI PHARMA despite trimming the target price from HKD94.54 to HKD87.49 due to expectations of revenue growth that, while below market expectations for 4Q25, still indicates a positive trajectory. The firm anticipates a 7% year-over-year increase in revenue for 4Q25, driven by a 14% growth in drug sales and significant collaboration revenue from a licensing agreement with GSK. Additionally, Nomura projects substantial growth in net profit attributable to shareholders, with a 32% increase expected for 4Q25 and a 30% increase projected for 2026, both exceeding market expectations. The anticipated expansion in gross and operating profit margins further supports the positive outlook, justifying the Buy rating.