Nomura: Rongchang Bio's new H-share issuance improves financial situation, increasing target price by 190.8%

On May 23rd, Nomura Research and Development reported that Rongchang Biological (09995.HK) 's placement of new H shares is good for the group's financial situation. The bank believes that the current strong market sentiment for biotechnology companies provides a good time for the group to issue, and at the same time, 800 million the proceeds of the Hong Kong dollar placement will strengthen the group's limited cash position. The bank believes that the outlook for asset licensing has also become brighter, so it raised the group's target price by 190.8%, from HK $16.37 to HK $47.6. Temporarily maintain the "neutral" rating.