CMS's stock price surged 5.09% during intraday trading on Wednesday, following a bullish research report from a major brokerage.

The sharp rise came after CICC maintained its Outperform rating on CMS and raised its target price by 6% to HK$17.50, implying a potential upside of 35% from current levels. The brokerage also increased its adjusted net profit forecasts for the company for 2026 and 2027, citing contributions from new product sales and an effective strategic transformation.

Key drivers highlighted in the report include the company's 2025 results meeting expectations, with innovative drugs and exclusive products becoming the core growth engine. The skin health business saw remarkable growth of 73.2% year-on-year, supported by plans to spin off Demai Pharmaceutical for a separate listing and the recent approval of a core vitiligo product. A robust product pipeline and significant R&D investments further underpin the positive outlook.