Broker: UOB Kay Hian
Date of Report: Wednesday, 18 March 2026
Excerpt from UOB Kay Hian report.
- CSPC Innovation Pharmaceutical reported 2025 revenue in line with expectations at Rmb2,158m, but higher R&D expenses resulted in a net loss of Rmb294m. The company expects a strong turnaround in 2026, driven by robust biopharmaceutical product sales and out-licensing income.
- Biopharmaceutical sales surged (192.65% yoy) and are expected to continue growing, especially with the anticipated market launch of new biosimilars and significant out-licensing income from AstraZeneca. Margins are expected to improve as the product mix continues to shift toward higher-margin biopharma products.
- The company upgraded its rating to BUY, with a lower target price of Rmb43.00 due to increased geopolitical risks. Risks include geopolitical tensions, policy risks, competition, R&D challenges, and possible delays in earnings generation.
Report Summary
- CSPC Innovation’s 2025 revenue was solid, but R&D investments led to a temporary loss; 2026 profitability is expected due to biopharma growth and out-licensing deals.
- Upgraded to BUY with a cautious outlook on potential risks, as new product launches and business development remain key catalysts for the stock.
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