Bank of America Securities: The upward cycle of CDMO business led Kanglong Chemical (03759) to increase the target price to HK$38.4

The Zhitong Finance App learned that Bank of America Securities released a research report stating that it raised the target price of Kanglong Chemical (03759) from HK$32.3 to HK$38.4, maintaining a “buy” rating. Kanglong Chemical's revenue for the first half of 2026 increased 17.9% year over year to RMB 7.6 billion. All businesses recorded growth. Among them, laboratory service revenue increased 13.7% year over year, CDMO revenue increased 32.8% year over year, clinical development revenue increased 13.8% year over year, and CDMO gross margin increased 2.7 percentage points, which was partially offset by pressure on laboratory and clinical services. Considering the rapid growth of CDMO, laboratory services, and clinical development businesses, and the visibility of the global oral GLP-1 business, Bank of America Securities raised Kanglong Chemical's 2026-2028 revenue forecast by 4%, 8%, and 12%, respectively, and is optimistic that the upward cycle of the company's CDMO business will bring growth.