Innovent Biologics’ latest results showed revenue below market expectations, while EPS significantly exceeded forecasts. Revenue and EPS estimates for next year were raised, and analysts also increased their target prices.
Innovent Biologics, Inc. reported its latest interim results, sending the share price 6.3% higher to HK$108. Revenue came in at RMB8.6 billion, 12% below expectations, while statutory profit was solid and EPS of RMB0.70 exceeded analysts’ forecasts by 49%. Following the results announcement, investors are watching the company’s forecasts for the next fiscal year and the market’s reaction.
Following the results, 29 analysts raised their forecasts for 2026 revenue to RMB18.6 billion and EPS to RMB1.27. The new forecasts imply revenue growth of approximately 19% and EPS growth of approximately 79% compared with the latest 12-month figures. The previous forecasts were revenue of RMB18.4 billion and EPS of RMB1.16, indicating that analysts have become more optimistic.
Following the upward revisions to earnings forecasts, analysts raised the consensus target price to HK$128. However, the target price is only the average of several analysts’ estimates, and there is a range between the most optimistic and most conservative views. The most optimistic target price is HK$150, while the most bearish is HK$94.09.
Looking ahead, growth forecasts relative to peers suggest that Innovent is expected to achieve annual growth of 40% through the end of 2026, above the 29% annual rate recorded over the past 5 years. Industry-wide growth is forecast at approximately 21% annually, drawing attention to Innovent’s accelerating growth.