CICC has released a research report adjusting its forecasts for SISRAM MED (01696). Due to DAXXIFY being in the early stages of commercialization, the firm has lowered its 2026 adjusted net profit estimate for the company by 16% to $34.72 million. It has also introduced a 2027 adjusted net profit forecast of $39.22 million. Based on the current share price, this implies adjusted price-to-earnings ratios of 6.3x for 2026 and 5.5x for 2027.

CICC maintained its "Outperform" rating on the stock. However, considering a recent downward trend in sector valuations, the investment bank reduced its target price by 25% to HK$4.50. This new target corresponds to adjusted P/E multiples of 7.9x for 2026 and 6.9x for 2027, suggesting a potential upside of 29.3% from the current share price.

The key points from CICC's report are as follows:

**2025 Performance Met Market Expectations** The company reported its 2025 results: revenue reached $365 million, representing a 5% year-on-year increase. Net profit attributable to shareholders was $19 million, a decline of 24% compared to the previous year. Adjusted net profit was $31 million, up 8% year-on-year, resulting in an adjusted net profit margin of 8.5% (an increase of 0.3 percentage points year-on-year). These figures were in line with market expectations.

**Rapid Growth in Injectables; Steady Growth in Most Overseas Regions** In 2025, revenue from the company's medical aesthetics business was $310 million (up 1% year-on-year). Revenue from the injectable fillers segment surged to $28 million (a 186% year-on-year increase). Revenue from services and other segments was $27 million (down 11% year-on-year).

Geographically, annual revenue from Europe was $56 million (up 12% year-on-year). Revenue from North America was $111 million (down 19% year-on-year). The Asia-Pacific region generated revenue of $147 million (a 27% year-on-year increase). Latin America contributed $14 million (up 36% year-on-year), while the Middle East and Africa region reported revenue of $36 million (a 5% year-on-year increase).

**Commercial Launch of Long-Acting Botulinum Toxin Awaited to Drive Revenue** According to company announcements, the commercialization process for its long-acting botulinum toxin product, DAXXIFY, is underway. In June 2025, an initial supply framework agreement was signed with Fosun Pharma to prepare for commercialization. A commercial distribution cooperation agreement was subsequently signed in September 2025. In January 2026, DAXXIFY officially passed the quality standard inspection by the National Institutes for Food and Drug Control and completed its first clinical application in the same month. The number of DAXXIFY units shipped has already exceeded ten thousand, with usage data showing steady growth. CICC anticipates that rapid scaling of this product will drive the company's overall revenue growth.

**Risk Warnings:** Commercialization progress may fall short of expectations, competition could intensify, and overseas business performance may be weaker than anticipated.