ADICON HOLDINGS (09860) experienced a significant surge on Tuesday, closing the session up 25.75%. The move followed a research report issued by investment bank Jefferies on March 30, which reaffirmed its "Buy" rating on ADICON HOLDINGS and updated its target price to HK$7.00. This new target implies a potential upside of 104% from the previous closing price of HK$3.43.

In its report, the bank highlighted that ADICON is focusing on artificial intelligence (AI) as a core driver for its Independent Clinical Laboratory (ICL) business development. The company's management has expressed optimism regarding growth prospects for the next 3-5 years, projecting that revenue contributions from the ICL business and the Contract Research Organization (CRO) business, acquired through CrownBio, will reach a 50:50 ratio.

For the 2025 fiscal year, the company reported revenue of RMB 2.6 billion and a net profit of RMB 18.4 million. AI is identified as a central strategic priority for ADICON: (1) The AI physician assistant "Xiao Ai" is integrated into cell analysis, diagnosis, and reporting processes, having already served 4 million patients and 150,000 doctors. The company has also launched the clinical large language model "Wen Yi," which is incorporated into the entire diagnosis and treatment workflow. (2) Following internal AI deployment, operational efficiency has improved significantly, with manual review volume reduced by 90% and customer complaints decreasing by 86%. (3) AI-assisted image reading takes approximately 10 minutes, with AI coverage exceeding 60% and cumulative image readings reaching 13 million. Furthermore, ADICON possesses 20 years of clinical testing data and, through the acquisition of CrownBio, has gained extensive preclinical oncology data, creating a significant data barrier.