LIVZON PHARMA

Livzon Pharmaceutical (1513.HK) staged a sharp rebound today, closing up 5.34% at HKD 25.64, after opening lower at HKD 24.38. The catalyst was the announcement that Livzon secured a controlling stake in Vietnam's Imexpharm via a tender offer, which overshadowed the Q1 2026 results showing a 4.44% YoY decline in revenue (HKD 3.255 billion) and a 4.08% drop in net profit (HKD 654 million). The stock broke above the HKD 25.40 resistance in the afternoon session and rallied to the intraday high of HKD 25.64. Despite the strong daily move, the stock remains 38.73% below its 52-week high of HKD 41.85 and is down 10.47% year-to-date, though it has reclaimed the 20-day moving average (HKD 25.10). The trailing PE of 10.24x and PB of 1.39x reflect a relatively compressed valuation. However, the full-year 2025 net profit declined 1.8% YoY, and the Q4 2025 net profit plunged 27.56% YoY, suggesting the underlying earnings headwinds are not yet fully resolved.