2Q26F preview and FY26F forecast revisions: Top-line growth on track, while earnings could see FX headwind; mid-term CDMO outlook brighter

研报英文原文证据摘录

2Q26F preview and FY26F forecast revisions: Top-line growth on track, while earnings could see FX headwind; mid-term CDMO outlook brighter

Global Markets Research

Pharmaron 3759.HK 3759 HK 24 July 2026

EQUITY: HEALTH CARE & PHARMACEUTICALS

Rating2Q26F preview and FY26F forecast revisions Remains Buy

Target priceTop-line growth on track, while earnings could see FX Increased from HKD 32.20headwind; mid-term CDMO outlook brighter HKD 27.33

We estimate 2Q26F sales/earnings grew 19.4%/9.3 y-y; reaffirm Buy Closing23 July 2026price HKD 23.70

We forecast Pharmaron’s 2Q26F revenue reached CNY4.0bn (+19% y-y, at the midpoint

of its earlier-announced preliminary results), on our estimates of laboratory service and Implied upside +35.9%

Chemistry/Manufacturing and Control (CMC) service to grow 20%/25% y-y to

CNY2.4bn/871mn. Market Cap (USD mn) 1,082.4

ADT (USD mn) 19.0We expect 2Q26F gross margin of 35.1% (+0.9p y-y), considering the company’s higher

mix of high-margin laboratory service. In addition to a likely lower other income (mainly

Relative performance chartone-off gain), we estimate net profit to shareholders at CNY433mn (9.3% y-y, at the mid-

point of its preliminary results) in 2Q26F.

Maintain Buy rating and lift TP to HKD32.20 from HKD27.33, implying 35.9% upside

Considering Pharmaron’s 1H26 preliminary results (along with robust backlog that grew

over 30% y-y), we lift FY26F revenue by 2%, while in contrast we lower our earnings

estimate by 7.6%, mainly in consideration of the negative FX impact, a universal

headwind for CRO players in 2026. That is equivalent for 2H26F revenue to grow 16.6%

y-y to CNY8.9bn and net profits to shareholders to rise 27% y-y to CNY1.2bn.

We also lift our mid-term revenue forecast, owing to Pharmaron’s recent CMC

development.