1H26F preview and FY26F forecast revisions: Drug sales on track to record double-digit percentage growth in 1H26F; rising R&D might impact earnings

Research evidence excerpt

1H26F preview and FY26F forecast revisions: Drug sales on track to record double-digit percentage growth in 1H26F; rising R&D might impact earnings

Global Markets Research

Hansoh 3692.HK 3692 HK 24 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating1H26F preview and FY26F forecast revisions Remains Neutral

Target priceDrug sales on track to record double-digit percentage Reduced from HKD 37.24growth in 1H26F; rising R&D might impact earnings HKD 38.00

We estimate 1H26F sales to increase by 11% y-y, while earnings to decline by 4.5% y-y Closing23 July 2026price HKD 32.58

We expect Hansoh’s 1H26F revenue to increase by 11% y-y to CNY8.2bn (or 13% y-y,

excluding our collaboration revenue estimate). We estimate: 1) oncology drugs sales will Implied upside +14.3%

register a 15% y-y increase on a low base of 1H25 to CNY4.2bn in 1H26F, driven by

aumolertinib’s stable growth from a large base and flumatinib’s continuous ramp-up, and Market Cap (USD mn) 25,197.7

2) out-licensing revenue will be at c.CNY1.7bn (vs.CNY1.7bn in 1H25), including an ADT (USD mn) 48.4

upfront payment from the Roche (ROG SW, Not rated) and Regeneron (REGN US, Not

rated) deals, as well as milestone payment from other deals. Relative performance chart

By margins, we forecast a lower gross margin of 91.0% (-0.1pp y-y) and operating margin

of 36.7% (-5.9pp y-y), considering higher R&D/selling expenses. Together with a higher

tax rate, 1H26F net profit to shareholders will come in at CNY3.0bn (-4.5% y-y).

For 2H26F, we estimate Hansoh’s top line will rise 13.4% y-y to CNY8.6bn and bottom

line will increase 8% y-y to CNY2.6bn. Despite competing drugs, namely alflutinib grew

sales rapidly (c.40% y-y in 1H26) or osimertinib included in NEML recently (see our