Nomura: Rongchang Bio's new H-share issuance improves financial condition, raising target price by 190.8%.

Jin10 reported on May 23 that Nomura’s research report indicates that the placement of new H shares by Rongchang Bio (09995.HK) is favourable for the group’s financial situation. The bank believes that the current strong sentiment in the market towards biotechnology companies provides a good issuance opportunity for the group. At the same time, the 800 million HKD raised from the placement will strengthen the group’s limited cash position. The bank also believes that the prospects for asset licensing have become brighter, thus raising the group’s target price by 190.8%, from 16.37 HKD to 47.6 HKD. The rating remains at “Neutral.”