The Zhitong Finance App learned that Jefferies released a research report saying that maintaining the target price of Pharmaceutical Kangde (02359) of HK$215 and the “buy” rating, there is room for the market to rise by about 11% from the target price.

According to the report, Yao Ming Kangde held the 2026 Investor Day. Highlights include: management believes that wet laboratory capabilities can complement AIDD (AI-driven drug discovery), and that large AIDD customers are already driving demand for DMPK (Drug Metabolism and Pharmacokinetics); currently there are 29 GLP-1 projects, 3 of which are in the CMO (Drug Contract Manufacturing) stage.

In addition, the estimated capital expenditure from 2023 to 2027 will exceed RMB 30 billion to expand design and manufacturing capacity. The year-on-year growth rate of the order backlog in the third quarter of 2026 accelerated from 25% in the second quarter to 36%, strengthening the predictability of revenue in 2027. Jefferies expects Pharmaceuticals to maintain steady growth and gain further room for growth in 2027/2028 as CMO production capacity increases.

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