Lyon: Raise Rongchang Biotech's (09995) target price to HK$144.8 to maintain “outperform the market” rating

The Zhitong Finance App learned that Lyon released a research report saying that Rongchang Biotech (09995)'s sales for the second quarter of 2026 increased 808.6% year-on-year, with net profit of 4.334 billion yuan. Both exceeded market expectations, benefiting from RC18's strong sales momentum and RC148's contribution to external licensing fees. Management maintains operating break-even guidelines for the full year 2026. The overseas progress of the company's RC148, RC18 and RC48 is progressing according to plan. Taking into account performance, the bank revised its forecast, raising Rongchang Biotech's 2026 sales forecast by 52.6% and lowering the 2027 and 2028 fiscal year forecasts by 23.8%/12.1%. The net profit forecast for the 2026 fiscal year was raised by 136.8%, the forecast for the 2027 and 2028 fiscal years was reduced by 65.1%/25.2%; and the target price was raised from HK$136.9 to HK$144.8. Maintain the “outperform the market” rating.