McGregor: Mingshan Kantor's interim results exceed expectations, reaffirming target price of HK$116

McGregor released a research report, reaffirming Mingshan Kantor (02359) with a "beats the market" rating and a target price of HK$116. The firm stated that Mingshan Kantor's interim results exceeded expectations, with revenue reaching RMB 20.8 billion, representing a year-over-year increase of 20.6%; net profit increased by 102% to RMB 86 billion. If the one-time gain of RMB 330 million from the sale of Minghe Pharmaceutical (02268) shares is excluded, recurring net profit would have increased by 26.5% to RMB 59 billion.

The firm pointed out that TIDES business revenue increased by 142% year-over-year to RMB 50 billion, which may be driven by the push of GLP-1 raw materials, exceeding the full-year growth target of 60%; the second-quarter gross margin also reached a new high of 46.9%, mainly due to the improvement in chemical business production efficiency and additional projects.