UBS has released a research report raising its price target for SKB BIO (06990) to HK$678, following first-half results that significantly exceeded expectations.

The company reported first-half revenue of RMB 978 million, representing a 3% year-on-year increase. Product sales surged 112% year-on-year to RMB 657 million, surpassing the bank's forecast of RMB 550 million, which partially offset the impact of lower licensing income.

During the period, net profit reached RMB 388 million, vastly outperforming both the bank's original estimate of a net loss of RMB 134 million and the market's consensus expectation of a net profit of RMB 128 million.

UBS has raised its product sales forecast for SKB BIO this year from RMB 1.38 billion to RMB 1.43 billion. This revision has lifted the bank's earnings per share estimates for 2026 through 2028 to RMB 2.41, RMB 2.09, and RMB 8.29, respectively. The price target has been adjusted upward from HK$667 to HK$678, with a reiterated "Buy" rating.