Daiwa Cuts Tigermed To Outperform On Margin Pressure

Daiwa downgraded Tigermed (03347) to Outperform from Buy and kept its target price unchanged at HK$44, according to ETNet. The broker said Tigermed's first-half results met market expectations, but profit missed forecasts because investment losses were higher than expected. Gross margin was also weighed down by pricing pressure, as more low-priced legacy projects were included in executed orders. Daiwa said new order growth has accelerated further and the average selling price of new orders continues to rise. Management expects pricing on executed orders to stabilize in the second half of 2026 and sees further pricing improvement in the first half of 2027. Daiwa also cut its 2027-28 adjusted net profit forecasts for the company by 8% to 10%, citing more conservative gross-margin assumptions and higher R&D spending.