Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>CCBI: Healthcare & Biotech Sectors Highly Valued, but Sector Drivers Remain Strong
Recommend 4 Positive 6 Negative 4 |
||||
|
||||
|
Although the healthcare and biotech sector is highly valued, the industry's driving forces remained strong, according to a research report released by CCBI. The share prices of major biotech companies in Hong Kong surged by 137% in total YTD, with the sector's PS ratio rising from 8.7x in December 2024 to 18.8x. However, the sector recently experienced a significant correction, primarily influenced by two factors, naming lower-than-expected drug sales performance of companies such as ZAI LAB (09688.HK) and HUTCHMED (00013.HK) in 1H25; and the market concerns that the US may impose a tiered pharmaceutical tariffs on China, with the tariff rate potentially rising to 150% within a year and a half and ultimately reaching 250%. The broker's top pick in the sector is INNOVENT BIO (01801.HK), which will announce its 1H25 results on 27 August. CCBI expected its losses to narrow significantly, and anticipated adjusted profits of RMB5 million. Therefore, the broker raised its target price from $100 to $110, with rating at Outperform. AAStocks Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
