Jinwu Financial News | Morgan Stanley reports that Yao Ming Biotech (02269) occupies a leading position in the global biologics outsourcing service field. Not only can its business model obtain patent royalties from successfully marketed drugs, but its layout in advanced projects has provided a strong impetus for the company's long-term growth. The bank believes that Yao Ming Biotech continues to maintain its leading position in the Chinese market with its excellent technical strength and cost efficiency.
As mentioned in the report, Morgan Stanley has raised its revenue forecast for Pharmaceutical Biotech from 2024 to 2026, which are expected to be 1.83 billion yuan, 2.03 billion yuan, and 2.32 billion yuan, respectively, with annual growth rates of 74%, 10.9%, and 14.5%, respectively. At the same time, the net profit forecast was raised accordingly, reflecting the growth of the company's high-profit milestone revenue and improved operating efficiency. Morgan Stanley adjusted its earnings per share (EPS) forecast for the next three years to RMB 0.81, RMB 0.87 and RMB 1.00, respectively, to reflect changes in the company's equity incentive plan. Furthermore, according to the company's latest guidelines, the bank raised its capital expenditure forecast for 2024 to 2026 from less than 0.3 billion yuan to more than 0.4 billion yuan per year.
The bank maintained its “Overweight” rating, but fine-tuned the target price from HK$32.00 to HK$31.60.
