Company Coverage
The United Laboratories International (3933 HK): 1H26: Miss on Licence Lapse; Growth To Resume In 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$8.20
HK$11.00
+34.2%
HK$13.00
Analyst
Analyst
Highlights
- TUL’s 1H26 results missed as a lapse in licence income resulted in a significant decrease in revenue and margins. Excluding licence income, overall operations remained stable in 1H26.
- We expect revenue and earnings to resume steady growth in 2H26, supported by a low bulk-medicine price base and continued finished-product expansion, while new product launches should further enrich the portfolio and generate significant revenue streams from 2027.
- Maintain BUY with a lower target price of HK$11.00.

Analysis
- 1H26 results missed. The United Laboratories International's (TUL) 1H26 revenue fell 18.0% yoy to Rmb6,165.9m and net profit dropped 81.6% yoy to Rmb347.6m, or Rmb333.5m adjusted. EBITDA fell 66.5% yoy to Rmb920.8m. No interim dividend was declared.

Highlights
- TUL’s 1H26 results missed as a lapse in licence income resulted in a significant decrease in revenue and margins. Excluding licence income, overall operations remained stable in 1H26.
- We expect revenue and earnings to resume steady growth in 2H26, supported by a low bulk-medicine price base and continued finished-product expansion, while new product launches should further enrich the portfolio and generate significant revenue streams from 2027.
- Maintain BUY with a lower target price of HK$11.00.

Analysis
- 1H26 results missed. The United Laboratories International's (TUL) 1H26 revenue fell 18.0% yoy to Rmb6,165.9m and net profit dropped 81.6% yoy to Rmb347.6m, or Rmb333.5m adjusted. EBITDA fell 66.5% yoy to Rmb920.8m. No interim dividend was declared.

BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$8.20
HK$11.00
+34.2%
HK$13.00
Analyst
Analyst
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