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<Research>BOCI Cuts TIGERMED (03347.HK) TP to HKD48; Profitability Continues to Face Pressure
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BOCI published a report stating that TIGERMED (03347.HK) recorded 1Q revenue growth of 15% YoY to RMB1.8 billion. The broker raised its revenue forecasts for 2026 to 2028 by 1%, 3% and 6%, respectively, implying a CAGR of 11% to 12% over the next three years. Although demand and execution remain resilient, growth is increasingly driven by project volume rather than pricing, reflecting limited pricing power. Profitability continues to face pressure, with gross margin declining 3.4 ppts YoY to 26.6%, resulting in only moderate profit growth. The broker lowered its adjusted net profit forecasts for 2026 to 2028 by 6% to 8% to RMB800 million to RMB1.3 billion. Free cash flow forecasts were also reduced by 8% to 11% to RMB1 billion to RMB1.6 billion annually. Meanwhile, earnings are still supported by around RMB500 million in recurring annual non-operating income (based on the brokers assumptions) and RMB195 million in fair value gains recorded in 1Q, indicating a rising contribution from investment income. BOCI cut its TP for TIGERMED to HKD48 from HKD51, reflecting weaker core earnings and increased reliance on the biotech valuation cycle. Given the companys solid cash flow and upside potential from its investment portfolio, the broker maintained a Buy rating. (ha/j) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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