Citigroup has released a research report noting that SINO BIOPHARM (01177) reported a 10.3% year-on-year increase in revenue to RMB 31.8 billion for the last year, which was largely in line with expectations. However, net profit rose 22% year-on-year to RMB 2.3 billion, falling short of both market and the bank's forecasts. The lower profitability was attributed to impairments on intangible assets and the termination of non-core businesses and associates, which is seen as creating room for and laying the foundation for future growth. Management anticipates that 20 new products or new indications will be approved between 2026 and 2028, including M701 (CD3/EpCAM), TQB2101 (Her2/Her2 ADC), and LM302 (CLDN18.2 ADC). The bank has raised its 2026 revenue forecast by 3% but lowered its 2027 revenue forecast by 1%. Earnings per share estimates for 2026 and 2027 have been reduced by 16% and 18%, respectively, due to an expected increase in minority interests. The target price has been lowered from HK$10.8 to HK$10, while the "Buy" rating is maintained.