CLSA has reaffirmed its "Outperform" rating on Hansoh Pharma (03692), raising the target price from HK$40 to HK$42.

The brokerage firm has kept its 2026 to 2028 earnings forecasts unchanged for the company. CLSA anticipates that Hansoh Pharma will have five new drugs approved for market launch next year, including B7-H3 ADC, Olatorepatide, c-MET, and RET, which could lay the groundwork for sustainable profit growth starting in 2028.

Hansoh Pharma stands out among Hong Kong-listed biopharmaceutical stocks as the company with the highest proportion of revenue coming from innovative drugs. In 2025, the company has demonstrated balanced growth with steady progress in innovative drugs and strong out-licensing activities. CLSA expects that driven by the continued volume expansion of innovative drugs, the company's revenue in the first half of this year will achieve double-digit growth. However, due to a simultaneous increase in research and development expenses, the interim net profit is anticipated to show only a single-digit increase.

Supported by a wave of new product launches in 2027, continuous delivery from business development (BD) activities, and steady progress in its pipeline, CLSA forecasts that Hansoh Pharma's revenue will grow by 14%, 10%, and 14% in 2026, 2027, and 2028, respectively. Net profit is expected to grow by 9%, 12%, and 16% over the same period.