Daiwa has issued a research report noting that CSPC Pharma (01093) posted a 40.1% year-on-year increase in interim revenue to RMB 18.59 billion, aligning with its earlier business guidance and the broker's expectations while surpassing market forecasts. Net profit reached RMB 6.1 billion, also within the profit alert range and matching Daiwa's projections, primarily driven by licensing fee income.

During the period, product sales revenue grew 4.1% year-on-year to RMB 12.7 billion, extending the growth momentum seen in the first quarter and consistent with management's guidance for full-year product revenue expansion. The target price has been lifted from HK$11 to HK$11.2, with the "Buy" rating maintained.

Daiwa indicated that the recovery in the company's finished drug business is mainly attributable to better-than-expected growth in central nervous system drug revenue, with second-quarter year-on-year growth accelerating to 33.1% compared to 22.2% in the first quarter. Correspondingly, Daiwa has raised its earnings per share forecasts for 2026 to 2028 by 1% to 19%, reflecting upward revisions to product sales and gross margin assumptions.