Morgan Stanley: Jiangsu Hengrui Pharmaceuticals (01276) is given a "overweight" rating with a target price of 92 Hong Kong dollars.

Morgan Stanley released a research report stating that the target price for Jiangsu Hengrui Pharmaceuticals (01276) is HK$92 with a rating of "hold". The report mentioned that Jiangsu Hengrui Pharmaceuticals is entering a new era of globalization, with an expected annual growth rate of innovative drug sales of 31.5%, 29.9%, and 28.7% in the years 2026 to 2028, respectively, thanks to its leading research and development capabilities and sales ability, making it one of the top picks. The report also noted that the company continues to generate regular income through external licensing, with expected approvals for 5 to 11 new drugs in 2026 to 2027, including potential blockbuster products such as ADC and GLP-1. In a favorable market environment, the company continues to push for external licensing to establish stable sources of recurring licensing income, further supporting cash flow and profit growth. Morgan Stanley believes that Jiangsu Hengrui Pharmaceuticals is expected to continue to consolidate its leading position in the Chinese biopharmaceutical industry and points out that the market has not fully reflected the growth potential brought by its globalization through authorized international expansion.