Innovent Bio profit jumps 50% as Daiwa lifts target to HKD135

Innovent Biologics reported H1 net profit of RMB1.25 billion, up 50.2% year on year, beating market expectations on lower-than-expected selling expenses.

"The results mark a new stage of high-quality development in revenue and profit," management said at the results briefing, where it unveiled first-time 2030 revenue guidance of RMB35-40 billion.

Total revenue rose 44.8% to RMB8.618 billion for the six months ended June 30, with product revenue up 56.7% to RMB8.20 billion. Gross profit climbed 43.0% to RMB7.32 billion, while gross margin edged down to 85% from 86%. Non-IFRS net profit increased 40.5% to RMB1.703 billion, with selling and distribution expenses coming in below the broker's and market forecasts. Both profit lines landed substantially above Daiwa's and consensus estimates.

Daiwa raised its 2026-28 earnings-per-share forecasts by 15-23% and lifted its target price to HKD135 from HKD120, reiterating a Buy rating. The broker called the 2030 revenue guidance a major positive surprise, representing a substantial step up from the 2027 product revenue target of RMB20 billion.

The dual-engine growth strategy, combining a broad biomedicine portfolio with accelerating sales of oncology drugs recently added to China's National Reimbursement Drug List, drove the performance. Shares of Innovent Biologics (01801.HK) fell 2.5% on the day, leaving the stock with a market capitalization of about HK$178.6 billion. Short selling accounted for roughly 19% of the day's turnover, according to exchange data.

The guidance raise points to management expecting revenue to more than quadruple from current levels by 2030, a pace that would cement Innovent's position among China's leading biopharmaceutical firms alongside peers such as BeiGene and Hansoh Pharma. The oncology portfolio, buoyed by National Reimbursement Drug List inclusion, has been the primary growth engine, with product sales expanding faster than overall revenue. The first-time disclosure of a long-range target gives investors a clearer benchmark for the company's ambition to become a global biopharmaceutical player, reinforcing its competitive position in China's fast-growing drug market. Investors will watch whether that momentum carries into the second half, when the company faces a higher comparison base.

This article is for informational purposes only and does not constitute investment advice.