In a report released today, Jill Wu from CMB International Securities maintained a Buy rating on HUTCHMED (China) Limited (HCM – Research Report), with a price target of HK$34.03.
Jill Wu’s rating is based on several key factors that highlight HUTCHMED (China) Limited’s strong financial and strategic position. The company delivered an impressive financial performance in FY24, largely driven by the robust international sales of fruquintinib, which exceeded expectations and contributed significantly to the top-line growth. The oncology and immunology product revenue saw a substantial year-over-year increase, and the company’s efforts to expand fruquintinib’s market presence in the US and other global markets are expected to sustain this momentum.
Moreover, HUTCHMED achieved sustainable profitability ahead of schedule, with a notable net profit for FY24, supported by reduced R&D and SG&A expenses. The company’s strong cash reserves provide flexibility for future strategic investments, including potential mergers and acquisitions. Additionally, the promising global commercialization prospects for savolitinib and the innovative development of the ATTC platform further reinforce the company’s growth potential. These factors collectively underpin Jill Wu’s Buy rating for the stock.
Wu covers the Healthcare sector, focusing on stocks such as BeiGene, Thermo Fisher, and CSPC Pharmaceutical Group. According to TipRanks, Wu has an average return of 11.5% and a 57.61% success rate on recommended stocks.