Kirin Holdings: Promising Health Science Growth Amidst Pharmaceutical Challenges, Hold Rating Maintained

DBS analyst Zheng Feng Chee has maintained their neutral stance on KNBWF stock, giving a Hold rating on May 13.

Zheng Feng Chee’s rating is based on a combination of factors that highlight both the potential and challenges facing Kirin Holdings Company. The company has shown promising growth in its Health Science segment, which is expected to be a key driver of earnings as it transitions from a loss to a profit by FY27. This growth is supported by strategic acquisitions and restructuring efforts, particularly in the APAC region, where the company is focusing on expanding its brands like Blackmores and FANCL.
However, despite these positive developments, the overall profit growth remains uncertain. The pharmaceutical segment is facing increased R&D expenses, which could offset gains in other areas. Additionally, while the company is divesting loss-making assets and acquiring new ones at reasonable valuations, sustainable profit growth has yet to be realized. As a result, Zheng Feng Chee maintains a Hold rating, suggesting that the stock may remain range-bound until more consistent profitability is demonstrated.

Feng Chee covers the Consumer Defensive sector, focusing on stocks such as PepsiCo, Asahi Group Holdings, and Delfi. According to TipRanks, Feng Chee has an average return of -5.5% and a 53.85% success rate on recommended stocks.

In another report released on May 13, Bernstein also maintained a Hold rating on the stock with a Yen2,100.00 price target.