CMB International has released a research report initiating coverage on HAIXI PHARMA (02637), assigning a 'Buy' rating and setting a target price of HK$280.

The report describes HAIXI PHARMA as an innovative, fully-integrated pharmaceutical company engaged in research, production, and sales. The company's portfolio includes 15 approved generic drugs and 4 innovative drugs in the pipeline.

A key highlight is the drug candidate HXP056, which has the potential to become the world’s first oral therapy for fundus diseases.

CMB International notes that the company's generic drug operations serve as a cash cow, providing sustained funding for its innovative research. By the end of 2025, the company is expected to have 15 approved generic drugs, with three of them holding top-two market positions, ensuring strong cash flow.

The report forecasts that the company's net profit will grow by 18.9% year-on-year to 210.5 million yuan in 2026.