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]

Core Viewpoint - The company reported a decline in revenue and profit for the first nine months of 2025, primarily due to industry policy impacts such as centralized procurement and price adjustments in the national medical insurance drug list [1][2]. Financial Performance - The company recorded revenue of RMB 19.891 billion and a profit attributable to shareholders of RMB 3.511 billion, representing a decrease of 12.3% and 7.1% respectively compared to the same period last year [1]. - The basic earnings per share attributable to shareholders was RMB 0.3072, down 4.1% year-on-year [1]. - The revenue from the pharmaceutical business was RMB 15.450 billion, including licensing fee income of RMB 1.540 billion, which decreased by 17.2% year-on-year [1]. - The raw material products business achieved sales revenue of RMB 3.006 billion, an increase of 10.3% compared to the previous year [1]. - The functional food and other businesses reported sales revenue of RMB 1.435 billion, up 11.2% year-on-year, mainly due to stable growth in sales of Guo Weikang [1]. Research and Development - R&D expenses increased by 7.9% to RMB 4.185 billion, accounting for 27.1% of the 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 stage [2]. - The company is enhancing its internal innovation capabilities and increasing R&D investment, resulting in a rich pipeline of innovative assets [2]. - The company is actively promoting the internationalization of its R&D pipeline through licensing innovative products and strategic collaborations with multinational pharmaceutical companies [2].

Financial Performance - For the nine months ended September 30, 2025, the company reported total revenue of RMB 19.89 billion, a decrease of 12.3% compared to RMB 22.69 billion in the same period last year[5]. - The company's profit attributable to shareholders was RMB 3.51 billion, down 7.1% from RMB 3.78 billion year-on-year[5]. - Basic earnings per share based on profit attributable to shareholders was RMB 30.72, reflecting a decrease of 4.1% from RMB 32.03 in the previous year[5]. - The gross profit for the same period was RMB 13,048,937,000, down from RMB 15,985,244,000, indicating a decrease of about 18.3%[49]. - The company reported total other income of RMB 541,844,000, an increase from RMB 401,531,000 in the previous year, marking a growth of about 34.8%[49]. - The basic earnings per share for the period was RMB 30.72, down from RMB 32.03 in the same period of 2024, indicating a decrease of about 4.0%[49]. - The total sales cost for the nine months was RMB 6,842,138,000, compared to RMB 6,700,907,000 in 2024, reflecting an increase of approximately 2.1%[49]. - The company’s operating profit before tax for the nine months was RMB 4,302,523,000, down from RMB 4,745,513,000 in the previous year, indicating a decrease of about 9.3%[49]. - The company reported a total income from sales of goods of RMB 18,351,066,000 for the nine months, down from RMB 22,686,151,000 in 2024, representing a decline of approximately 19.3%[51]. - Total revenue for the nine months ended September 30, 2025, was RMB 19,891,075,000, with a breakdown of RMB 18,351,066,000 from merchandise sales and RMB 1,540,009,000 from licensing fees[55]. Segment Performance - The pharmaceutical segment generated revenue of RMB 15.45 billion, a decline of 17.2% from RMB 18.67 billion in the prior year, primarily due to centralized procurement and price adjustments in the national medical insurance drug list[6]. - Revenue from raw materials increased by 10.3% to RMB 3.01 billion, compared to RMB 2.73 billion in the previous year[4]. - Revenue from functional foods and others rose by 11.2% to RMB 1.43 billion, up from RMB 1.29 billion year-on-year[4]. - The neurological system treatment area saw a revenue drop of 21.6%, from RMB 7.23 billion to RMB 5.67 billion[6]. - The oncology segment experienced a significant decline of 56.8%, with revenue falling from RMB 3.81 billion to RMB 1.65 billion[6]. - The anti-infective segment's revenue decreased by 22.7%, from RMB 3.21 billion to RMB 2.48 billion[6]. Research and Development - R&D expenses increased by 7.9% year-on-year to RMB 4.185 billion, accounting for 27.1% of pharmaceutical business revenue, with nearly 90 products in various stages of clinical trials[12]. - The R&D pipeline is being accelerated through diverse models including licensing, independent development, and collaborative research[12]. - The company is committed to a dual-driven strategy of "innovation + internationalization" to strengthen its long-term competitive advantage[7]. - The company is focusing on enhancing product quality and expanding its overseas sales network to increase market share[9]. - The company is actively pursuing collaborations and partnerships to accelerate its research and development efforts in oncology[34][36]. Clinical Trials and Product Development - Three new products were approved for market launch in China, and eight products received acceptance for market applications from the beginning of the year[13]. - The company has received 10 clinical trial approvals for innovative drugs in North America and one qualification for expedited review[13]. - The company is developing SYH2070 injection (ANGPTL3 siRNA) for high triglycerides or mixed dyslipidemia, expected to be available by September 2025[20]. - The company is advancing SYS6043 (B7-H3 ADC) for late-stage or metastatic solid tumors, with clinical trials initiated in January 2025[20]. - The company has initiated a Phase III clinical trial in China for JSKN003, targeting positive control treatment for depression, with patient enrollment currently ongoing[22]. - The company is also developing SYS6010 (CPO301) for late or metastatic non-squamous non-small cell lung cancer, with fast track designation granted in May 2025[21]. - The company plans to launch SYH2061 injection (C5 siRNA) for IgA nephropathy and other complement-mediated diseases by October 2025[19]. - The company is conducting a Phase III clinical trial for JMT101 in combination with chemotherapy for HER2 low-expressing recurrent or metastatic breast cancer, with the first patient enrolled in January 2025[23]. - A Phase III clinical trial for the treatment of type 2 diabetes using JMT101 in combination with dapagliflozin commenced in China, with the first patient enrolled in July 2025[26]. - The company completed the enrollment of the last patient in a Phase III clinical trial for the treatment of primary hypertension in August 2025[32]. Strategic Initiatives and Collaborations - The group entered a strategic research collaboration with AstraZeneca, with an upfront payment of $110 million and potential milestone payments of up to $5.2 billion[45]. - The group has signed exclusive licensing agreements for SYS6005 (ADC) and received an upfront payment of $15 million, with potential milestone payments of up to $1.575 billion[43]. - The group has retained rights to develop and commercialize other oral GLP-1 receptor agonist products in China while granting exclusive rights for SYH2086 globally, with a total potential value of up to $2.075 billion[46]. - The group is actively promoting the internationalization of its R&D pipeline through licensing innovative products and strategic collaborations with multinational pharmaceutical companies[42]. - The company aims to enhance its market presence through strategic partnerships and collaborations in drug development[37][38]. Intellectual Property and Patents - The group submitted a total of 249 PCT international patent applications and 2,409 patent applications (1,542 domestic and 867 foreign) as of October 31, 2025, with 1,040 patents granted (666 domestic and 374 foreign)[41]. - The group has submitted 41 PCT international patent applications and 324 patent applications (187 domestic and 137 foreign) from January to October 2025, with 62 patents granted[41].