Company Coverage
CSPC Pharmaceutical Group (1093 HK): 1H26: Results Beat; Out-licensing Income Boosts Earnings Growth
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HK$9.52
HK$11.50
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Highlights
CSPC’s 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b, well above our full-year growth estimates. Licence fee income surged 448.5% yoy to Rmb5.9b, serving as the key growth driver.
CSPC expects its growth momentum to continue over the next five years, driven by rising out-licensing income and new product launches, with over 30 new product/indication approvals targeted in the next three years.
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Analysis
1H26 results beat. CSPC Pharmaceutical Group’s (CSPC) 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b on Rmb5.9b of licence fee income. Interim dividend amounted to 18 HK cents, up 28.5% yoy.

Highlights
CSPC’s 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b, well above our full-year growth estimates. Licence fee income surged 448.5% yoy to Rmb5.9b, serving as the key growth driver.
CSPC expects its growth momentum to continue over the next five years, driven by rising out-licensing income and new product launches, with over 30 new product/indication approvals targeted in the next three years.
Upgrade to BUY with a higher target price of HK$11.50.

Analysis
1H26 results beat. CSPC Pharmaceutical Group’s (CSPC) 1H26 revenue rose 40.1% yoy to Rmb18.6b and underlying net profit jumped 165.8% yoy to Rmb6.2b on Rmb5.9b of licence fee income. Interim dividend amounted to 18 HK cents, up 28.5% yoy.

BUY (Upgraded)
Current price:
Target price:
Upside:
Previous TP :
HK$9.52
HK$11.50
+20.8%
HK$6.00
Analyst
Analyst
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