Yamato: Upgrade Hangzhou Tigermed Consulting (03347) target price to HK$45 with increased revenue forecast.

Daiwa released a research report stating that it has raised its revenue forecast for Hangzhou Tigermed Consulting (03347) by 1% to 7% for 2026 to 2027, but lowered its earnings per share forecast for the same period by 8% to 12% due to a decrease in gross profit margin and an increase in sales, administrative expenses, and research and development expenses. The "hold" rating is maintained with a target price raised from HK$38 to HK$45. Hangzhou Tigermed Consulting is expected to see a 1% to 16% year-on-year increase in revenue in 2025, reaching RMB 66.6 billion to 76.8 billion, rebounding from an 11% decline in 2024. Net profit is expected to increase by 105% to 204%, reaching RMB 8.3 billion to 12.3 billion; while recurring net profit is expected to decrease by 43% to 61%, reaching RMB 3.3 billion to 4.9 billion, mainly due to order cancellations, a decrease in order prices, and increased operational costs related to team expansion. Looking ahead to 2026, the bank estimates that the company's revenue will increase by 16% to around 8 billion, with net profit increasing by 14% and the net profit margin narrowing by 1 percentage point to 15%.