Core Viewpoint - Nomura's research report indicates that CSPC Pharmaceutical Group's revenue and profit for the first three quarters have decreased by 12.3% and 7.1% year-on-year, amounting to 19.9 billion and 3.5 billion respectively [1] Financial Performance - The estimated revenue for the third quarter is 6.6 billion, which represents a year-on-year increase of 3.4% and a quarter-on-quarter increase of 5.7%, significantly below the market expectation of 7.4 billion [1] - The year-on-year increase is primarily attributed to the recognition of collaboration income of 465 million, which was not present in the same period last year [1] - Product sales in the third quarter decreased by 2.7% year-on-year but increased by 4.2% quarter-on-quarter to 6.2 billion [1] Management Guidance - Management aims for positive growth in pharmaceutical sales by 2026 and anticipates that R&D spending will increase by 15% to 20% year-on-year during the same period [1] Forecast Adjustments - Nomura has revised down its revenue forecasts for 2025 and 2026 by 12% and 6% respectively, and profit forecasts by 26% and 14%, due to underperformance in pharmaceutical sales and delays in recognizing collaboration project income [1] - The target price has been reduced from 10.09 HKD to 9.11 HKD, while maintaining a "Buy" rating, with expectations for gradual sales recovery in the coming quarters [1]

Group 1 - The Hong Kong stock market saw a collective decline in the innovative drug sector, with notable drops in several companies [1] - Three-Sixty Pharmaceutical experienced a decline of over 7% [1] - Other companies such as King’s Ray Biotechnology, CSPC Pharmaceutical Group, and Galenica also reported declines [1]

Core Viewpoint - CICC maintains "outperform" rating for CSPC Pharmaceutical Group (01093), highlighting improvements in the company's prescription drug business and strong growth in respiratory and cardiovascular sectors [1] Performance Summary - For the first three quarters of 2025, the company reported revenue of 19.891 billion yuan, a year-over-year decrease of 12.3%, and a net profit attributable to shareholders of 3.511 billion yuan, down 7.1% year-over-year. Adjusted net profit was 3.079 billion yuan, a decline of 23.0% year-over-year, aligning with CICC's expectations. In Q3 2025, revenue reached 6.618 billion yuan, showing a year-over-year increase of 3.4% and a quarter-over-quarter increase of 5.7%, indicating stabilization in performance. The prescription drug revenue in Q3 2025 was 5.202 billion yuan, with year-over-year growth of 1.6% and quarter-over-quarter growth of 9.6% [2] Business Segment Performance - In Q3 2025, revenue from various therapeutic areas included: - Neurological diseases: 1.914 billion yuan (YoY -4.2%) - Oncology: 594 million yuan (YoY -47.2%) - Anti-infection: 826 million yuan (YoY -8.6%) - Cardiovascular diseases: 474 million yuan (YoY +17.8%) - Respiratory diseases: 320 million yuan (YoY +72.7%) - Digestive system: 248 million yuan (YoY +13.7%) - Other areas: 362 million yuan (YoY +25.6%) - The company’s raw material drug revenue was 1.415 billion yuan, with a year-over-year increase of 10.5% and a quarter-over-quarter decrease of 6.4% [2] R&D Progress - The company is advancing its innovation-driven strategy, with significant progress in its small nucleic acid pipeline. Key projects include PCSK9, expected to enter Phase III by the end of 2025, and other clinical projects targeting chronic diseases such as blood lipid and blood pressure management. The company is also exploring targeted delivery for eye, lung, fat, and muscle diseases. Notable in-development products include anti-HER2 monoclonal antibodies and EGFR ADCs [3] Overseas Business Development - The company is enhancing its business development strategy and has established an international licensing platform. In the first three quarters of 2025, it achieved licensing revenue of 1.540 billion yuan. In Q3 2025, the company licensed SYH2086 (an oral small molecule GLP-1) to Madrigal Pharmaceuticals for global development and commercialization outside of China, which includes an upfront payment of 120 million USD and potential milestone payments of up to 1.955 billion USD, along with double-digit sales royalties. The company has additional innovative products in its pipeline that are expected to lead to further licensing opportunities and milestone revenue recognition [4] Profit Forecast and Valuation - Considering increased R&D investments, CICC has lowered its net profit forecasts for 2025 and 2026 by 12% and 15% to 4.760 billion yuan and 5.353 billion yuan, respectively. The current stock price corresponds to a price-to-earnings ratio of 17.1 times for 2025 and 15.0 times for 2026. The "outperform" rating is maintained, with a target price reduction of 15% to 11.00 HKD, reflecting a price-to-earnings ratio of 24.4 times and 21.4 times for 2025 and 2026, respectively, indicating a potential upside of 42.5% [5]

Core Viewpoint - Company maintains "outperforming the industry" rating for CSPC Pharmaceutical Group (01093), citing improvements in its prescription drug business and strong growth in respiratory and cardiovascular sectors [1] Performance Summary - Company reported 1-3Q25 revenue of 19.891 billion, down 12.3% YoY, and net profit attributable to shareholders of 3.511 billion, down 7.1% YoY, with adjusted net profit of 3.079 billion, down 23.0% YoY, aligning with expectations [1] - 3Q25 revenue reached 6.618 billion, showing a 3.4% YoY increase and a 5.7% QoQ increase, indicating stabilization in performance [1] - Prescription drug revenue in 3Q25 was 5.202 billion, with a YoY increase of 1.6% and a QoQ increase of 9.6% [1] - Breakdown of 3Q25 prescription drug revenue: - Neurological diseases: 1.914 billion (YoY -4.2%) - Oncology: 0.594 billion (YoY -47.2%) - Anti-infection: 0.826 billion (YoY -8.6%) - Cardiovascular: 0.474 billion (YoY +17.8%) - Respiratory: 0.320 billion (YoY +72.7%) - Digestive: 0.248 billion (YoY +13.7%) - Other fields: 0.362 billion (YoY +25.6%) [1] - Raw material drug revenue in 3Q25 was 1.415 billion, up 10.5% YoY but down 6.4% QoQ [1] R&D Summary - Company continues to drive innovation with ongoing development of its small nucleic acid pipeline, with PCSK9 expected to enter Phase III by the end of 2025 [2] - Other clinical projects include LPa, AGT, ANGPTL3, and C5, targeting key chronic diseases such as dyslipidemia and hypertension [2] - Company is also exploring targeted delivery for eye, lung, fat, and muscle applications [2] - Key pipeline products include Anlotinib (HER2 bispecific), SYS6010 (EGFR ADC), and SYS6091 (HER2 ADC), all progressing well [2] Overseas Business Development Summary - Company is enhancing its business development strategy and building an international licensing platform [3] - In 1-3Q25, the company achieved licensing revenue of 1.540 billion, with a significant deal involving the licensing of SYH2086 (oral small molecule GLP-1) to Madrigal Pharmaceuticals, including a $120 million upfront payment and potential milestones of up to $1.955 billion [3] - The company has several innovative products in its pipeline, such as EGFR ADC and SiRNA series, which are expected to lead to more licensing agreements and milestone revenue recognition [3] Profit Forecast and Valuation - Due to increased R&D investment, the company has lowered its net profit forecasts for 2025 and 2026 by 12% and 15% to 4.760 billion and 5.353 billion, respectively [4] - Current stock price corresponds to a P/E ratio of 17.1x for 2025 and 15.0x for 2026 [4] - The company maintains its outperforming rating while reducing the target price by 15% to HKD 11.00, reflecting a P/E of 24.4x and 21.4x for 2025 and 2026, respectively, indicating a potential upside of 42.5% [4]

Core Viewpoint - The stock price of CSPC Pharmaceutical Group (01093) dropped over 6% following the release of its third-quarter results, reflecting market concerns over declining revenue and profit margins [1] Financial Performance - For the first three quarters, the company reported revenue of 19.891 billion RMB, a year-on-year decrease of 12.32% [1] - The profit attributable to the company's owners was 3.511 billion RMB, down 7.06% compared to the previous year [1] Business Segment Analysis - The prescription drug business generated revenue of 15.450 billion RMB, representing a year-on-year decline of 17.2% [1] - The decline in revenue is primarily attributed to the ongoing impact of centralized drug procurement and price adjustments in the national medical insurance drug list [1]

Core Viewpoint - The stock price of CSPC Pharmaceutical Group (01093) dropped over 6% following the release of its Q3 earnings report, reflecting ongoing challenges in the pharmaceutical industry due to policy impacts on drug pricing and procurement [1] Financial Performance - For the first three quarters, the company reported a revenue of 19.891 billion RMB, a year-on-year decrease of 12.32% [1] - The profit attributable to shareholders was 3.511 billion RMB, down 7.06% compared to the previous year [1] - The revenue from the prescription drug business was 15.450 billion RMB, which represents a year-on-year decline of 17.2% [1] Industry Impact - The decline in revenue is primarily attributed to the ongoing effects of centralized drug procurement and adjustments in the National Medical Insurance drug list pricing policies [1]

Major Events - Sanofi Pharmaceutical (01530) proposes to spin off Mandi International and independently list it on the main board of the Hong Kong Stock Exchange [1] - Youbao Online (02429) signs a trusted asset management platform service agreement with Ant Chain Technology [1] - Jianxi Technology-B (09877) reports 6-month clinical follow-up results for LuX-Valve Plus TRINITY study on patients with large valve rings [1] - Fuhong Hanlin (02696) announces that Hanshu® (Sru Li monoclonal antibody injection) combined with chemotherapy for gastric cancer neoadjuvant/adjuvant treatment has been officially included in the breakthrough therapy drug program by the National Medical Products Administration [1] - Kaizhile International (02122) partners with globally renowned toy company Jazwares to launch HELLO KITTY AND FRIENDS toys [1] Operating Performance - ZTO Express-W (02057) reports third-quarter net profit attributable to shareholders of 2.524 billion yuan, an increase of 5.32% year-on-year [1] - Lenovo Group (00992) announces interim results with a profit attributable to shareholders of 846 million USD, a year-on-year growth of 40% [1] - CSPC Pharmaceutical Group (01093) releases third-quarter results showing a profit attributable to shareholders of 3.511 billion yuan, a decrease of 7.06% year-on-year [1] - NetEase-S (09999) reports third-quarter net profit attributable to shareholders of approximately 8.616 billion yuan, a year-on-year increase of 31.77%, with a dividend of 0.114 USD per share [1] - Jingyou Pharmaceutical (00858) issues a profit warning, expecting a mid-term loss of approximately 450 million to 480 million HKD, transitioning from profit to loss year-on-year [1]

Core Insights - The company reported a decline in revenue and net profit for the first three quarters of 2025, with total revenue at RMB 19.89 billion, down 12.3% year-on-year, and net profit attributable to shareholders at RMB 3.511 billion, down 7.1% [1] Financial Performance - Total revenue for the first three quarters was RMB 19.89 billion, a decrease of 12.3% compared to the previous year [1] - Net profit attributable to shareholders was RMB 3.511 billion, reflecting a year-on-year decline of 7.1% [1] - Adjusted net profit was RMB 3.079 billion, down 23% year-on-year [1] - Basic earnings per share were RMB 0.3072, a decrease of 4.1% from the same period last year [1] Business Segments - Revenue from the pharmaceutical business was RMB 15.45 billion, down 17.2%, primarily due to centralized procurement and price adjustments in the national medical insurance drug list [1] - Revenue from raw material products was RMB 3.006 billion, an increase of 10.3%, with vitamin C sales reaching RMB 1.788 billion, up 22.3% [1] - Revenue from functional foods and other businesses was RMB 1.435 billion, reflecting an 11.2% increase [1] Research and Development - R&D expenses increased by 7.9% to RMB 4.185 billion, accounting for 27.1% of pharmaceutical business revenue [2] - The company has nearly 90 products in various stages of clinical trials, with 14 submitted for market approval and over 30 key products in the registration clinical phase [2]

格隆汇11月20日｜石药集团(01093.HK)公布，2025年首九个月，集录得收入人民币198.91亿元及公司股 东应占呈报溢利人民币35.11亿元，分别较去年同期减少12.3%及7.1%。撇除按公平值计入损益之金融资 产的公平值变动及以股份为基础之雇员酬金开支后，公司股东应占基本溢利为人民币30.79亿元，较去 年同期减少23.0%。公司股东应占呈报溢利的每股基本盈利为人民币30.72分，较去年同期减少4.1%。 来源：格隆汇APP ...

Core Insights - The company reported a revenue of RMB 19.891 billion for the nine months ending September 30, 2025, representing a year-on-year decrease of 12.32% [1] - Profit attributable to shareholders was RMB 3.511 billion, down 7.06% year-on-year, with earnings per share at RMB 0.3072 [1] Group 1: Pharmaceutical Business - The pharmaceutical segment generated revenue of RMB 15.450 billion, including licensing fee income of RMB 1.540 billion, a decrease of 17.2% compared to the same period last year [1] - The decline in revenue is primarily attributed to the ongoing impact of centralized procurement and price adjustments of drugs listed in the national medical insurance drug catalog [1] Group 2: Innovation and Internationalization Strategy - The company emphasizes innovation and has increased its investment in research and development to enhance its long-term competitive advantage [1] - The company is advancing its internationalization strategy through diverse models such as licensing, self-development, and research collaborations [1] Group 3: Raw Material Products - The raw material products segment achieved sales revenue of RMB 3.006 billion, an increase of 10.3% year-on-year [1] - Sales revenue from Vitamin C products reached RMB 1.788 billion, up 22.3% year-on-year, driven by significant demand growth in overseas markets [1] - The company plans to focus on product quality and expand its overseas sales network to further increase market share [1]