HSBC raises CMS(00867)target to HK$14.60 on spin-off X
26/06/2025 12:15
(Infocast News)    HSBC Global Research maintains Buy rating on  China Medical System Holdings (CMS)(00867)with a higher price target of HK$14.60 (from HK$12.00).

HSBC expects new innovative drugs to fuel smooth growth and Dermavon spin-off to enhance shareholder returns.

HSBC now expect the company’s innovative pipeline to become a long-term growth engine. 

Dermavon is China’s leading, pure-play innovative dermatology player with full-cycle R&D/commercial capabilities, and given its RMB618m revenue and RMB106m net loss in 2024 (source: company report), HSBC expects Dermavon to register fast growth of nearly c50% revenue CAGR over 2024- 26e. HSBC has not factored in the spin-off into their model as the deal is still pending regulatory approval. 

(SY)

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