Guoyuan International: Maintaining Yuanda Pharmaceuticals (00512)'s “Buy” Rating Target Price of HK$11.88
The Zhitong Finance App learned that Guoyuan International released a research report saying that Yuanda Pharmaceutical (00512)'s innovative products are gradually being launched, driving continued growth in performance. Innovative drug research and development is progressing smoothly, and management efficiency is high. The broad market space for nuclear drugs will drive the company's performance to continue to rise, and is expected to increase the valuation, giving the company a target price of HK$11.88, corresponding to 18 times PE in 2026. There is room for a 45.23% increase compared to the current price, and maintain the purchase rating.
Guoyuan International's main views are as follows:
Innovative drugs drive revenue growth
Total operating income of HK$6.11 billion was achieved in mid-'25, with a 2.0% year-on-year increase in RMB; normalized profit of HK$1.02 billion was achieved, and the RMB caliber decreased by 5.0% year-on-year. Among the main business segments, pharmaceutical technology products contributed the most, with revenue of HK$3,845 billion. The RMB caliber rose 2.9% year on year. The revenue from nuclear drug anti-tumor diagnosis and treatment was HK$420 million. The RMB caliber increased by 105.5% year-on-year. The increase was mainly due to yigantaiytum [90Y] microspheres. Based on groundbreaking mid-term clinical data, the FDA officially approved the use of sir-spheres yttrium [90Y] microsphere injection for unresectable HCC in advance, and there is no limit on tumor diameter. It is the world's first and currently the only selective internal radiation therapy “SIRT” product approved by the FDA to treat unresectable HCC and liver metastases in colorectal cancer.
Innovative drug pipelines are rich, with a focus on nuclear drugs
The company has 5 major technology platforms and 8 R&D centers. The R&D and project investment in the first half of '25 was HK$1.02 billion. The company focuses on innovative nuclear drugs and has a world-leading nuclear drug pipeline, covering radionuclide conjugated drugs (RDCs) and tumor interventional products, such as TLX591, TLX250, GPN02006, etc., all of which are in phase III clinical or approved for new indications. The number of innovative nuclear drug pipelines has now reached 27, of which self-developed products account for 50%. The registered R&D stage reserves 15 innovative products, covering 5 types of nuclides and covering 7 types of cancer. The clinical phase II of the innovative drug STC3141 to treat sepsis reached the clinical end point. The 7-day SOFA score of the pharmacotherapy group dropped significantly from the baseline, especially in the high-dose group. The decline was significantly greater than that of the placebo group. The difference was statistically significant and clinically significant; the trend of secondary endpoints was consistent with the main endpoint. It is the world's first sepsis treatment program centered on reconstructing immune homeostasis.
Profit forecast
The company's performance is expected to continue to grow in the future. Revenue is expected to be HK$12.35 billion, $13.39 billion, and HK$14.79 billion respectively; EPS is HK$0.59, 0.66, and HK$0.77, respectively.