Daiwa Securities has lowered Tigermed’s rating to Outperform from Buy, while leaving its HK$44 price target unchanged, according to ETNet.

The brokerage says Tigermed’s first-half results met market expectations, but net profit missed forecasts due to investment losses that were larger than anticipated. Gross margin was pressured by pricing headwinds as more low-priced legacy projects were included in executed orders.

Daiwa notes that new order growth has accelerated and the average selling price of new orders continues to rise. Management expects pricing on executed orders to stabilise in the second half of 2026, with further improvements anticipated in the first half of 2027.

Additionally, the broker cut its 2027-28 adjusted net profit forecasts for Tigermed by 8% to 10%, citing more conservative gross-margin assumptions and higher research and development spending.