CITIC SEC: ADICON HOLDINGS (09860) given target price of HK$4.5, rating downgraded to "Outperform"

CITIC SEC released a research report, assigning ADICON HOLDINGS (09860) a 2026 PE of 30x, a target market capitalization of HK$3.3 billion, corresponding to a target price of HK$4.5, and downgrading the rating to "Outperform." The bank stated that the company's revenue has returned to positive growth and profit is increasing, with the inflection point having arrived. Gross margin has improved significantly, and the core business has entered a growth channel. ADICON's five-year plan targets revenue of RMB 6 billion by 2031, and the acquisition of Crown Bioscience involves uncertainty. The bank forecasts the company's revenue for 2026-2028 to be RMB 2.805/3.042/3.301 billion, representing year-over-year growth of 6%-9% respectively; net profit to be RMB 0.099/0.166/0.201 billion, representing year-over-year growth of 435%/69%/21% respectively, corresponding to earnings per share forecasts of HK$0.15/0.25/0.30 for 2026-2028.