Core Viewpoint - The stock price of CSPC Pharmaceutical Group (01093) rose by 6.34% to HKD 9.73, with a trading volume of HKD 1.225 billion, driven by positive forecasts regarding its business development agreements and revenue growth potential [5]. Group 1: Business Development and Revenue Projections - According to a report by Citi, CSPC's business development transactions are expected to convert into recurring revenue starting in 2026 [5]. - The agreements signed with AstraZeneca and Madrigal Pharmaceuticals are projected to bring approximately USD 10.2 billion in upfront and milestone payments, significantly boosting profits for the fiscal years 2025 to 2027 to RMB 6.3 billion, RMB 10.2 billion, and RMB 10.9 billion respectively [5]. Group 2: Sales Performance and Future Outlook - CMB International noted that CSPC has signed six business development agreements since the end of 2024, establishing a pipeline with several late-stage or differentiated drug candidates that have high potential for external licensing [5]. - The company's sales showed a slight recovery in Q3 of the previous year, with core revenue (excluding licensing income) increasing by 4.2% quarter-on-quarter, and major products also showing slight improvements [5]. - It is anticipated that drug sales will stabilize this year, with business development transactions expected to be a continuous driver of profit growth and support for dividends [5].

Core Viewpoint - The stock of CSPC Pharmaceutical Group (01093) has risen nearly 6%, currently trading at HKD 9.69 with a transaction volume of HKD 1.173 billion, driven by positive research reports indicating significant future revenue growth from business development agreements [1] Group 1: Business Development and Revenue Growth - According to a report from Citi, CSPC's business development transactions are expected to convert into recurring revenue starting in 2026 [1] - Agreements with AstraZeneca and Madrigal Pharmaceuticals are projected to bring approximately USD 10.2 billion in upfront and milestone payments, significantly boosting profits to RMB 6.3 billion, RMB 10.2 billion, and RMB 10.9 billion for the fiscal years 2025 to 2027 [1] Group 2: Sales and Market Performance - CMB International noted that CSPC has signed six business development agreements since the end of 2024, establishing a pipeline with several late-stage or differentiated candidates that have high potential for external licensing [1] - The company's sales showed a slight recovery in Q3 of last year, with core revenue (excluding licensing income) increasing by 4.2% quarter-on-quarter, indicating a minor improvement in major products [1] - It is anticipated that the pharmaceutical sales will stabilize this year, with business development transactions expected to be a continuous driver of profit growth and support for dividends [1]

Core Viewpoint - The stock of CSPC Pharmaceutical Group (01093) has seen a nearly 6% increase, driven by positive forecasts regarding its business development agreements and expected revenue growth from partnerships with AstraZeneca and Madrigal Pharmaceuticals [1] Group 1: Business Development and Revenue Projections - According to a report from Citi, CSPC's business development transactions are expected to convert into recurring revenue starting in 2026 [1] - The agreements with AstraZeneca and Madrigal Pharmaceuticals are projected to bring approximately $10.2 billion in upfront and milestone payments, significantly boosting profits to RMB 6.3 billion, RMB 10.2 billion, and RMB 10.9 billion for the fiscal years 2025 to 2027 [1] Group 2: Sales and Earnings Growth - CMB International noted that CSPC has signed six business development agreements since the end of 2024, establishing a pipeline with several late-stage or differentiated candidates that have high potential for external licensing [1] - The company's sales showed a slight recovery in Q3 of last year, with core revenue (excluding licensing income) increasing by 4.2% quarter-on-quarter, indicating a minor improvement in major products [1] - It is anticipated that the pharmaceutical sales will stabilize this year, with business development transactions expected to be a continuous driver of profit growth and support for dividends [1]

Core Viewpoint - The report from Citi indicates that the business development (BD) transactions completed by the company are expected to convert into recurring revenue starting this year [1] Group 1: Business Development Transactions - The company has completed four significant BD transactions with AstraZeneca and Madrigal Pharmaceuticals, which are projected to generate approximately $10.2 billion in upfront and milestone payments [1] - These transactions are anticipated to significantly boost the company's profits to 6.3 billion, 10.2 billion, and 10.9 billion from 2025 to 2027 [1] Group 2: Financial Forecast Adjustments - The financial forecasts for 2025 to 2027 have been adjusted, with profit estimates being lowered by 2.4% for 2025, raised by 8.2% for 2026, and increased by 53.7% for 2027, reflecting the financial impact of the BD transactions after risk adjustments [1] Group 3: Investment Rating and Target Price - The company maintains a "highly confident outperform" rating, with the target price raised from HKD 17.4 to HKD 19 [1]

Group 1 - Trump and Modi reached a trade agreement to reduce tariffs on Indian goods from 25% to 18% and cancel an additional 25% tariff on Indian purchases of Russian oil. India committed to purchasing over $500 billion worth of U.S. goods in sectors including energy, technology, agriculture, and coal [2] - SpaceX announced the completion of its acquisition of xAI, with SpaceX valued at approximately $1 trillion and xAI at around $250 billion, resulting in a combined valuation of $1.25 trillion [2] Group 2 - The U.S. Labor Statistics Bureau will not release the January non-farm employment report due to a partial government shutdown, and the December job openings report will also be postponed [4] - U.S. stock markets saw all three major indices rise, with the Dow Jones up 1.05%, S&P 500 up 0.54%, and Nasdaq up 0.56%. Notable tech stocks like Intel rose nearly 5%, while Nvidia fell over 2% [5][6] - The Nasdaq Golden Dragon China Index fell 0.65%, with significant declines in Chinese stocks such as XPeng down 8.2% and BYD down 6.7% [5] Group 3 - The U.S. dollar index increased by 0.64%, while the offshore and onshore RMB showed slight fluctuations [8] - Gold and silver experienced significant volatility, with spot gold dropping over 4% and silver declining nearly 7%. WTI crude oil futures fell by approximately 4.71% [6][8] Group 4 - The Chinese manufacturing PMI for January rose to 50.3, indicating continued expansion, driven by improvements in employment and new orders [22] - Citigroup raised its GDP forecast for Hong Kong to 3.2% for the year, reflecting a more stable recovery in major industries [24]

Investment Rating - The report maintains a "Buy" rating for CSPC Pharmaceutical Group with a target price of HK$13.93, up from the previous target of HK$11.05, indicating a potential upside of 45.1% from the current price of HK$9.60 [6][9]. Core Insights - A significant licensing agreement valued at over US$18.5 billion has been established with AstraZeneca, focusing on eight weight management and type II diabetes projects, which is expected to drive long-term growth for CSPC [3]. - CSPC has demonstrated a strong track record in business development, signing six licensing agreements since the end of 2024, which validates its drug discovery capabilities and suggests sustainable revenue streams in the medium to long term [4]. - The company reported total revenue of RMB 19.9 billion for the first nine months of 2025, with a core revenue decline of 19% year-on-year, although a recovery was noted in Q3 2025 with a 4.2% quarter-on-quarter increase in core revenue [5]. Financial Summary - For FY25E, CSPC's revenue is projected to be RMB 26.949 billion, reflecting a year-on-year decline of 7.1%, with a net profit of RMB 4.945 billion, which is expected to grow by 14.0% in FY26E [8][19]. - The company’s R&D expenses increased by 7.9% year-on-year to RMB 4.2 billion for the first nine months of 2025, representing a R&D expense ratio of 21.0% [5]. - The sales expense ratio decreased significantly from 29.2% in the first nine months of 2024 to 24.1% in the same period of 2025, indicating improved cost management [5]. Valuation Metrics - The report projects an increase in earnings forecasts due to the AstraZeneca deal, adjusting the DCF-based target price to HK$13.93, with a WACC of 9.34% and a terminal growth rate of 3.0% [6][16]. - The estimated EPS for FY25E is RMB 0.43, with a PE ratio of 20.1, which is expected to decrease to 14.9 by FY26E [8][19].

Core Viewpoint - On January 30, 2023, the company signed a strategic research and development cooperation and licensing agreement with AstraZeneca, leveraging its sustained-release drug delivery technology platform and peptide drug AI discovery platform to develop innovative long-acting peptide drugs, with a total potential transaction value of up to $18.5 billion, including $1.2 billion in upfront payments, up to $3.5 billion in research milestones, and up to $13.8 billion in sales milestones along with double-digit sales royalties, showcasing the company's global leading position in long-acting peptide and AI drug development [1][2] Event - The company announced the signing of a strategic R&D cooperation and licensing agreement with AstraZeneca to utilize its proprietary sustained-release drug delivery technology platform and peptide drug AI discovery platform to develop innovative long-acting peptide drugs, including a clinical-ready project SYH2082 (long-acting GLP1R/GIPR agonist) currently advancing to Phase I clinical trials, along with three preclinical projects with different mechanisms of action [1][2] Product Development - SYH2082 is a long-acting GLP1R/GIPR dual receptor agonist, designed for monthly administration, utilizing the sustained-release drug delivery technology platform and peptide drug AI discovery platform to achieve weight loss and metabolic improvement for obesity and weight management indications [2] - The company's sustained-release drug delivery technology platform (LiquidGel long-acting sustained-release system) employs innovative gel matrix and microsphere preparation technology to achieve stable sustained release of peptide drugs, significantly improving safety and tolerability [2] Pipeline and Collaboration - The company continues to advance its innovative drug pipeline, with multiple clinical products showing significant potential for external licensing, supported by diversified technology platforms and global strategic layout [2] - In 2025, the company successfully licensed several core products and innovative technology platforms, including ROR1 ADC (SYS6005) licensed to Radiance Biopharma with an upfront payment of $15 million and potential development, regulatory, and sales milestone amounts totaling up to $1.225 billion, and the oral small molecule GLP-1 receptor agonist SYH2086 licensed globally to Madrigal Pharmaceuticals with an upfront payment of $120 million and potential total collaboration value of up to $2.075 billion [2] Financial Forecast - The company forecasts revenues of 27.335 billion yuan, 28.333 billion yuan, and 30.047 billion yuan for 2025-2027, with net profits attributable to the parent company of 4.924 billion yuan, 5.086 billion yuan, and 5.416 billion yuan, corresponding to PE ratios of 25, 24, and 23, maintaining a "buy" rating [3]

Major Events - Singularity Guofeng (01280) sold all shares of China Silver Ray (Hong Kong) Investment Holdings Limited at zero cost [1] - ZTE Corporation (00763) plans to invest 117 million yuan to subscribe to Jianxing Zhanlu Fund shares [1] - Cloud Factory (02512) subsidiary won the bid for the second phase of the artificial intelligence industry base project [1] - CSPC Pharmaceutical Group (01093) received drug registration approval for Chlorpheniramine Lactate Injection [1] - Derin Holdings (01709) reported a Bitcoin balance of 84.555 BTC as of January 31 [1] - Baiguoyuan Group (02411) diluted its stake in Baiguoyuan Commercial Management to 51.02%, with core management investing to enhance new business layout [1] Operating Performance - XPeng Motors-W (09868) delivered 20,011 new vehicles in January [1] - Ruipulan Jun (00666) issued a profit warning, expecting a net profit of approximately 630 million to 730 million yuan in 2025, turning from loss to profit [1] - China Merchants Jinling (00978) projected a total contract sales amount of approximately 32.308 billion yuan in 2025, a year-on-year decrease of 23.91% [1] - China National Building Material (03323) issued a profit warning, expecting a shareholder loss of approximately 2.3 billion to 4 billion yuan in 2025, turning from profit to loss [1]

Group 1 - The Hong Kong Dividend ETF (ICBC, 159691) closed down 3.71% on February 2, with a trading volume of 472 million yuan [1] - The fund was established on March 30, 2023, with an annual management fee of 0.45% and a custody fee of 0.07% [1] - As of January 30, 2024, the fund's latest share count was 6.306 billion, with a total size of 8.691 billion yuan, reflecting a 3.43% decrease in shares and a 3.03% increase in size since December 31, 2025 [1] Group 2 - The current fund managers are Liu Weilin and He Shun, with Liu managing since March 30, 2023, achieving a return of 39.18%, while He is set to manage from May 30, 2024, with a return of 16.38% [2] - The fund's top holdings include China National Offshore Oil Corporation (14.55%), China Shenhua Energy (9.65%), and China Pacific Insurance (8.90%), among others [2][3]

Core Viewpoint - The announcement highlights that CSPC Pharmaceutical Group has received drug registration approval from the National Medical Products Administration of China for its Lercanidipine injection, which is a rapid-acting intravenous antihypertensive medication designed for patients who cannot take oral medications effectively [1] Group 1: Product Details - The Lercanidipine injection is classified as a dihydropyridine calcium channel blocker and is intended for the treatment of hypertension [1] - The product is available in two formulations: 25mg in a 50ml vial and 50mg in a 100ml vial [1] Group 2: Advantages - The product offers significant advantages over commonly used medications, including faster onset of action and the ability to achieve rapid, real-time, and precise blood pressure control [1] - It is particularly suitable for patients with liver and kidney dysfunction, as dosage adjustments are not required during treatment [1] - The formulation does not require dilution, which can significantly benefit patients at risk of fluid overload [1] Group 3: Market Impact - The approval of this product will enhance CSPC's product pipeline in the cardiovascular disease treatment sector, increasing its competitiveness in this field [1] - The product is expected to address the clinical demand gap for emergency hypertension medications [1]