Citibank: Raising the target price of Medicinal Biotech (02269) to HK$62 to a “buy” rating

The Zhitong Finance App learned that Citi released a research report stating that it raised the target price of Yao Ming Biotech (02269) from HK$42 to HK$62, with a “buy” rating. The bank raised Yao Ming Biotech's 2026-2028 revenue forecast by 2%, 3% and 8%, and the earnings forecast per share by 10%, 10% and 17%. According to Citi, Pharmaceutical Biotech's management raised its 2026 revenue guidance to a year-on-year increase of 20%-23% at a fixed exchange rate. The previous forecast was 16%-20%, or a 15-18% year-on-year increase in the reporting base year. The previous forecast was 13%-17%. Maintain the 20% revenue compound annual growth rate guideline for the next three years. Among them, the R/D/M business will have a compound annual growth rate of 20%/10% -15%/30%, respectively. Despite foreign exchange uncertainty, management indicated that gross margin for the second half of this year will be the same as in the first half of the year, and gross margin will increase by 100 basis points in 2027 due to higher average selling prices, rising WBS and overseas production capacity.