Morgan Stanley has released a research report noting that TIGERMED (03347) announced preliminary results for 2025, with revenue expected to be between RMB 6.66 billion and RMB 7.68 billion, representing a year-on-year increase of 1% to 16%. This range is from 2% below to 12% above Morgan Stanley's estimates. Net profit is projected to be between RMB 830 million and RMB 1.23 billion, indicating a significant year-on-year growth of 105% to 204%. The firm has set a target price of RMB 81 for TIGERMED's A-shares (300347.SZ) with an "Overweight" rating.

Morgan Stanley indicated that the robust profit growth is primarily attributable to a substantial revaluation of TIGERMED's assets and a relatively low base in 2024. Despite weak recurring earnings performance due to order cancellations and collection difficulties, the company's new order growth remains strong. The net value of new orders in hand, after deducting cancellations, is between RMB 9.5 billion and RMB 10.5 billion, representing a year-on-year increase of 13% to 25%.

The report also mentioned that the group's management remains optimistic about the industry's prospects. During a recent meeting, management suggested that the Chinese CRO industry appears to be in a recovery phase.