Key Takeaways:
- Keymed swung to RMB1.22B net profit in 1H26 from RMB78.8M loss a year earlier
- Revenue rose 24% YoY to RMB617M in the half-year period
- Board proposed RMB ordinary share issuance and STAR Market listing in Shanghai
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Keymed Biosciences swings to RMB1.2B profit, plans STAR Market listing
Keymed Biosciences swung to a RMB1.22 billion first-half net profit from a RMB78.8 million loss, as revenue rose 24 percent to RMB617 million.
The board resolved to propose the issuance of RMB ordinary shares and a listing on the STAR Market of the Shanghai Stock Exchange, the company said in a filing. The proposed issuance remains subject to market conditions, further board approval, shareholders' approval and regulatory clearances.
Basic earnings per share from continuing operations reached CNY4.29 for the half year ended June 30, versus a basic loss per share of CNY0.30 a year earlier. Diluted EPS was CNY4.25, compared with a diluted loss of CNY0.30. Shares of the Hong Kong-listed biotech rose 6.42 percent to HKD82, after touching an intraday high of HKD83.05, with turnover of HKD52 million and short-selling of HKD12.2 million. No interim dividend was declared.
The STAR Market listing would give Keymed a second listing venue and direct access to mainland Chinese investors, potentially improving liquidity and providing a new capital-raising channel. The swing to profitability marks a turning point for the company, which had posted losses in prior periods. Investors will watch for regulatory approvals and the timeline for the proposed Shanghai listing.
The company's pipeline includes CM310, CM326, CM313 and CM383, targeting type II immunological diseases including atopic dermatitis, asthma, chronic rhinosinusitis with nasal polyps and allergic rhinitis. In July, Keymed reported positive topline results from its Clarity-Gastric01 global Phase III trial for CMG901, a gastric cancer candidate, and the stock fell 5 percent on the news as investors digested the data.
Keymed received a $257 million upfront payment in June following the close of Gilead Sciences' acquisition of Ouro Medicines, in which Keymed held a stake. The company's CM512 candidate for chronic rhinosinusitis with nasal polyposis met all Phase 2 endpoints in August and received breakthrough therapy designation from China's National Medical Products Administration in July, sending shares up 4 percent.
The proposed STAR Market listing follows a broader trend of Hong Kong-listed biotech companies seeking dual listings on mainland exchanges to tap domestic capital markets. Keymed employs 1,625 staff and focuses on autoimmune and oncology therapies. MarketScreener consensus data shows 14 analysts with a mean buy rating and an average target price of CNY83.81, implying roughly 27 percent upside from the last close.
The earnings turnaround and planned dual listing could re-rate the stock as it gains access to mainland investors. The next event to watch is regulatory approval for the STAR Market application and the company's full-year 2026 results.
This article is for informational purposes only and does not constitute investment advice.
