BOC International: Maintaining Deqi Pharmaceutical's (06996) “Buy” Rating Target Price of HK$10

The Zhitong Finance App learned that BOC International released a research report stating that it maintains the target price of HK$10 and the “buy” rating for Deqi Pharmaceutical (06996). The bank raised the company's 2026 revenue forecast to reflect cooperative revenue contributions, lowered the 2027-2028 forecast to reflect more cautious product sales expectations, and raised the ATG-022 peak sales forecast 35% to RMB 2.6 billion (same below).

The company's revenue for the first half of 2026 surged 865% year-on-year to 510 million yuan, thanks to the 460 million yuan authorized cooperative revenue contributed by UCB and K2 Therapeutics. The company expects to receive another near-term milestone payment of $20 million from UCB in the second half of the year. Sivio's sales contributed 55 million yuan in revenue, an increase of 4% over the previous year, and insurance coverage in Asian markets outside of China continued to expand. R&D expenses surged 54%, mainly due to the company's increased investment in internal pipeline plans and exploration of potential BD opportunities, while SG&A expenses fell 7%. The adjusted net profit for the first half of the year after deducting the net exchange difference was 220 million yuan, a year-on-year loss of profit.