Zhaoyan New Drug (06127.HK) +5.540 (+24.955%) short sale $19.6 million; ratio 2.385%. Today (15th) opened up 12.61%, and hit a high of 27.8 yuan. Last price 27.62 yuan, up 24.41%; volume 1.1B shares, turnover $180k. China International Capital Corp. (CICC) issued a report saying it expects Zhaoyan New Drug to achieve revenue of 669 million to 739 million yuan RMB (same below) in the first half of 2026, up 0% to 10.5% year-on-year; net profit attributable to shareholders is expected to be 600 million to 900 million yuan, a substantial increase of 885% to 1,377% year-on-year, exceeding market expectations. Of this, the fair value change in biological assets is expected to contribute net profit of 703 million to 777 million yuan, mainly driven by the Q2 NHP price rise and natural growth of biological assets. As the NHP tender price at the end of Q2 rose to about 180k yuan per unit, the value of biological assets further improved, providing main support for profits for the reporting period. On core business, the firm said its laboratory services and other businesses are expected to record a net loss of 142 million to positive 65 million yuan in the first half, reflecting that the profitability of core businesses has not yet returned to normal levels. Management said although laboratory operations remain stable, due to earlier industry price competition, revenue for the period only saw a slight increase, and the gross margin still needs to recover. CICC noted that the current share price implies a P/E ratio of about 27 times for 2027, which is broadly in line with domestic CRO comparable companies. Although the rise in NHP prices is expected to continue supporting near-term earnings, core business profit improvement is slow, leaving limited room for further valuation upgrades. The firm keeps its earnings forecast unchanged, reiterating a “Hold” rating and a target price of HK$23. (ad/j)(Hong Kong stock quotes are delayed by at least fifteen minutes. Short-sale data as of 2026-07-15 12:25.)

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Innovent Biopharmaceuticals (06127.HK) gains extend to over 24%; CICC International: first-half earnings guidance exceeds expectations

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