Daiwa has released a research report indicating an upward revision of its target price for Pharmaron (03759) from HK$25.5 to HK$38.5, while reaffirming a "Buy" rating. The firm has also lifted its earnings per share forecasts for the company for the current and next fiscal years by 6.6% and 2.6%, respectively.

The company's interim results largely aligned with its earlier profit alert, with revenue growing 17.9% year-on-year to RMB 7.6 billion. This figure meets the company's guidance and sits at the upper end of its original growth target range of 12% to 18%. Furthermore, adjusted net profit under non-IFRS measures increased 20.3% year-on-year, also landing at the upper end of its profit alert, surpassing both Daiwa's and market expectations.

Driven by robust first-half performance and strong momentum in new order growth, management has raised its full-year revenue growth guidance from the previous 12% to 18% range to a new band of 15% to 20%. The company emphasized that customer demand and orders remained robust throughout July and August, and it anticipates that future profit growth will outpace revenue growth slightly.