Citi: Lowers Luye Pharma (02186) target price to HKD 4.3, price cuts for mature products weigh heavier than expected

According to Zhitong Finance APP, Citi issued a research report stating that Luye Pharma (02186) $LUYE PHARMA (02186.HK)$ The impact of price reductions on mature products is heavier than anticipated, hence lowering its revenue and net profit forecasts for this year and next. Management guidance indicates a compound annual growth rate (CAGR) of over 25% in net profits from 2026 to 2030, implying a significant improvement in profitability, mainly driven by: Accelerated sales growth of its product Erozfi in the United States, with sales projected to double to USD 40 million by 2026, reaching break-even; Continued growth of new products in China. Based on the discounted cash flow (DCF) valuation method, the group's target price has been reduced from HKD 5 to HKD 4.3, reiterating a 'Buy' rating.

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