Yamato: Yao Ming Biotech (02269) benefited from the first half results, the gross margin was better than expected and the target price was raised to HK$59

The Zhitong Finance App learned that Yamato released a research report saying that the total revenue of Yao Ming Biotech (02269) in the first half of the year increased 18.4% year on year to RMB 11.8 billion, and adjusted non-IFRS net profit rose 38.4% year on year to 3.31 billion yuan, mainly driven by gross margin rising from 42.7% to 46.2% in the same period last year, and its performance beat market expectations. Yamato reiterated its “buy” rating for Yao Ming Biotech. The target price was raised from HK$44 to HK$59. This is equivalent to the predicted price-earnings ratio of 24 times, an increase of 20 times the previous one, to reflect improved market sentiment and stable fundamentals. The bank also raised its earnings forecast per share by 12% to 14% from 2026 to 2028, mainly based on higher gross margin forecasts.