Glonghui, May 14 | Jefferies released a report saying that the current stock price of HK$14.7 for Pharmaceutical Biotech means that it only values existing non-US contracts, that is, it does not value existing US contracts, nor does it value new contracts in any region in the future. As unresolved issues will be resolved, the situation is even more clear. The bank believes that the upward potential of Yao Ming Biotech is greater than the downside potential, and that the company is the only large CRO/CDMO company with a market account ratio of only 1.4 times, while the price-earnings ratio of domestic peers is 2 to 3 times, and global peers are 4 to 5 times higher. The bank lowered the target price of Pharmaceutical Biotech from HK$53 to HK$42. Based on the basic scenario assumption that there are no new US contracts and existing US contracts are retained indefinitely, the rating is “buy”.