Group 1 - Beijing Tide Pharmaceutical has launched its self-developed terbutaline patch (Derytuo) across major e-commerce platforms and offline pharmacies, marking it as the first domestically produced terbutaline patch in China [1] - The global transdermal drug delivery market is expanding at a compound annual growth rate (CAGR) of 5%, driven by an aging population and increasing chronic disease burden [1][3] Group 2 - The terbutaline patch utilizes innovative sustained-release technology to control the permeation rate, allowing for continuous absorption through the skin, thus overcoming traditional treatment limitations [2] - The patch is approved for patients aged 9 and above, with plans to extend its use to children under 9, potentially opening up the pediatric market [2] Group 3 - The global transdermal patch market is projected to grow from $7.88 billion in 2023 to $10.33 billion by 2029, with a CAGR of approximately 5% from 2024 to 2029 [3] - Beijing Tide has developed a comprehensive technology platform covering gel patches, hot melt adhesive patches, transdermal patches, and microneedle patches, establishing a fully controllable supply chain from raw materials to finished products [3][4] Group 4 - The company has successfully launched five patch products, including the first domestic non-steroidal anti-inflammatory gel patch, which has gained recognition among healthcare providers and patients [4] - With an annual production capacity of 330 million patches, Beijing Tide is accelerating the transformation of laboratory results into clinical value through partnerships with e-commerce platforms and educational content [4]

Core Viewpoint - China Biopharmaceutical has received FDA approval for its drug, Paimapril monoclonal antibody injection, for specific cancer treatments [1] Group 1: FDA Approval Details - The Paimapril monoclonal antibody injection is approved for use in combination with cisplatin or carboplatin and gemcitabine for first-line treatment of recurrent or metastatic non-keratinizing nasopharyngeal carcinoma (NPC) in adult patients [1] - It is also approved as a monotherapy for adult patients with metastatic non-keratinizing nasopharyngeal carcinoma who have experienced disease progression during or after platinum-based chemotherapy and have received at least one prior treatment [1]

Core Viewpoint - China National Pharmaceutical Group's PD-1 monoclonal antibody, Anike (Paimupili injection), has received FDA approval for treating recurrent or metastatic nasopharyngeal carcinoma (NPC) as a first-line therapy and for patients who have failed platinum-based chemotherapy [1][2] Company Summary - Anike is the first innovative drug product from China National Pharmaceutical Group to be approved in the U.S. market [1] - The drug has already been approved for four indications in China, including first-line and subsequent treatment for advanced NPC, and two additional indications for lung cancer and Hodgkin lymphoma [1] - The FDA previously granted breakthrough therapy designation, orphan drug status, and fast track designation for Anike in treating NPC [2] - The CEO of China National Pharmaceutical Group emphasized that the U.S. approval reflects the alignment of China's innovative drug development with international standards and aims to provide new immunotherapy options for NPC patients globally [2] Industry Summary - In 2018, there were approximately 129,000 new cases of NPC globally, accounting for 0.7% of all cancer diagnoses [3] - Over 70% of NPC patients are diagnosed at an advanced stage, and those with recurrent/metastatic NPC have a poor prognosis, with a median overall survival of less than 20 months [3] - There is a significant unmet clinical need for effective treatments for advanced NPC patients [3]

Core Viewpoint - The establishment of Zhongsheng Leading (Shanghai) Private Equity Fund aims to support the development of innovative biopharmaceutical enterprises in their growth phase, with a total target size of 1 billion yuan and an initial closing size of 500 million yuan [1] Group 1 - Zhongsheng Leading Fund is initiated by the Leading District Industrial Development Fund [1] - The fund is managed by Pudong Capital, a subsidiary of Pudong Investment Group [1] - Initial investors include Pudong Investment Group, China National Pharmaceutical Group, Foton Capital, and Hangzhou Kebaite [1] Group 2 - The investment strategy focuses on empowering enterprises across the entire process of research and development, production, and sales [1]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - In 2024, the company achieved a total revenue of 28.87 billion yuan, representing a year-on-year increase of 10.2%. The net profit attributable to shareholders reached 3.50 billion yuan, up 50.1% year-on-year, while the adjusted Non-HKFRS net profit was 3.46 billion yuan, reflecting a 33.5% increase [2][5][8]. - The company has seen robust growth in innovative product revenues, which reached 12.06 billion yuan, a growth of 21.9%, accounting for 41.8% of total revenue. In 2024, six innovative products were approved for market launch, and 28 generic drugs were also approved [8]. - The oncology segment generated revenue of 10.73 billion yuan, up 22.0%, while the liver disease segment saw a decline of 10.1% to 3.44 billion yuan. The respiratory segment grew by 6.2% to 3.15 billion yuan, and the surgical/pain management segment increased by 18.9% to 4.46 billion yuan. However, the cardiovascular segment experienced a significant decline of 21.0% to 2.17 billion yuan [8]. - The company's gross margin for continuing operations improved to 81.5%, up from 81.0% in the previous year, while the selling and administrative expense ratio decreased by 0.1 percentage points, showcasing effective organizational integration and management strategies [8]. - The company is positioned as a benchmark for traditional pharmaceutical companies transitioning to innovation, with a clear inflection point in its fundamentals. The growth in innovative products and optimization of the entire operational chain support its strong long-term value [8]. - Profit forecasts indicate that the net profit attributable to shareholders is expected to be 2.655 billion yuan, 3.144 billion yuan, and 3.725 billion yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.14 yuan, 0.17 yuan, and 0.20 yuan [8].

Core Viewpoint - China Biopharmaceutical has submitted a clinical trial application for its self-developed drug TQB6411 to the National Medical Products Administration (NMPA) and has received acceptance [1] Group 1: Product Development - TQB6411 is an antibody-drug conjugate (ADC) targeting EGFR and c-Met, which are key drivers of lung cancer, and it works by blocking the signaling pathways associated with these receptors [1] - The drug has demonstrated significant anti-tumor effects in vitro, showing antibody-dependent cell-mediated cytotoxicity (ADCC) and the ability to kill adjacent tumor cells through a bystander effect [1] - TQB6411 has completed pharmacology, pharmacokinetics, and safety validation, showing clear anti-tumor mechanisms and significant inhibitory effects on EGFR and c-Met positive cells [2] Group 2: Competitive Positioning - The in vivo activity of TQB6411 is significantly superior to that of the comparable drug AZD9592, while its in vitro activity is comparable [2] - In addition to TQB6411, the company has other products in the EGFR and c-Met target area, including TQB2922, which has entered Phase I clinical trials, and TQB3002, a fourth-generation EGFR inhibitor that has been approved for clinical trials in the U.S. [2] - The company aims to accelerate the clinical development of these products to address unmet clinical needs globally and provide better treatment options for patients [2]

Investment Rating - The report recommends a selection of ten stocks across various sectors, indicating a positive outlook for these companies [4]. Core Insights - The report highlights the potential for double-digit growth in earnings for companies like China Biopharmaceuticals and Sichuan Road and Bridge, driven by strong market demand and innovative product pipelines [5][6]. - The report emphasizes the importance of product differentiation and market positioning for companies such as Maogeping and Transsion Holdings, which are expected to benefit from their unique offerings and market strategies [10][11]. - The report also notes the significant land value gains and high dividend yields for Shenzhen International, suggesting a favorable investment environment [14]. Summary by Sector 1. Pharmaceuticals - China Biopharmaceuticals (1177.HK) is expected to achieve nearly 50% revenue from innovative drugs by 2025, with a strong growth trajectory anticipated [5]. 2. Construction - Sichuan Road and Bridge (600039.SH) is projected to see a turnaround in performance due to new demand from infrastructure projects in central and western China, alongside attractive dividend yields [6]. 3. Media - Kaiying Network (002517.SZ) is building a solid foundation with nostalgic products and a rich pipeline of new games set to launch in 2025, alongside investments in AI-driven products [7][9]. 4. Electronics - Transsion Holdings (688036.SH) is focusing on emerging markets, with a projected shipment of 106.9 million smartphones in 2024, aiming to enhance its market position through increased R&D investment [10]. 5. Consumer Goods - Maogeping (1318.HK) is positioned as a leading high-end domestic cosmetics brand, with a strong product expansion strategy and high offline repurchase rates [11]. 6. Transportation - Shenzhen International (0152.HK) is expected to benefit from significant land value gains and maintain a 50% dividend payout ratio, enhancing its investment appeal [14]. 7. Agriculture - Haida Group (002311.SZ) is entering a phase of cash flow release, with domestic growth and overseas expansion expected to drive performance [15]. 8. Overseas - Weishi Jiajie (0856.HK) is a leading tech service platform in the Asia-Pacific region, benefiting from the AI wave and digital transformation trends [16]. - Yum China (9987.HK) is focusing on market share growth through strategic repurchase plans and robust governance [18]. 9. North Exchange - Minshida (833394.BJ) is the first domestic manufacturer of aramid paper, with a strong market position and growth potential in high-performance applications [19][20].

Investment Rating - The report maintains a "Buy" rating for China National Pharmaceutical Group (1177) [3][8]. Core Insights - The company has demonstrated impressive performance, with innovative product revenue continuing to rise and significant cost reduction and efficiency improvements [3][8]. - The company achieved a revenue of 28.87 billion RMB in 2024, reflecting a year-on-year increase of 10.2%, and a net profit of 3.5 billion RMB, which is a 50.1% increase year-on-year [8]. - The revenue from innovative products reached 12.06 billion RMB in 2024, a 21.9% increase year-on-year, accounting for 41.8% of total revenue [8]. - The company is expected to see multiple new drug approvals in 2025, which will further drive revenue growth [8]. Financial Summary - Revenue for 2022 was 28.78 billion RMB, decreased to 26.19 billion RMB in 2023, and is projected to increase to 28.87 billion RMB in 2024, with further growth expected in subsequent years [7]. - The gross profit for 2024 is estimated at 23.53 billion RMB, with a gross margin of 81.5%, showing a slight increase from the previous year [8]. - The adjusted net profit for 2024 is projected at 34.6 billion RMB, reflecting a 33.5% increase year-on-year [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company has achieved double-digit growth in both revenue and profit, with a focus on the global progress of its innovative pipeline [5][7] - The company reported a revenue of 28.87 billion RMB in 2024, representing a year-on-year growth of 10.2%, and an adjusted net profit of 3.46 billion RMB, up 33.5% year-on-year [7] - The revenue from innovative products reached 12.06 billion RMB in 2024, growing by 21.9%, accounting for 41.8% of total revenue [7] - The company has a rich pipeline of innovative products with high potential for international expansion [7] - The management has improved efficiency, leading to an increase in profit margins [7] Financial Forecasts and Valuation - The company expects to maintain double-digit growth in 2025, with projected revenues of 32.56 billion RMB and a net profit of 4.64 billion RMB, reflecting year-on-year growth rates of 12.8% and 32.6% respectively [6][7] - The earnings per share (EPS) is projected to be 0.25 RMB in 2025, with a price-to-earnings (P/E) ratio of 13.55 [6][7] - The company’s return on equity (ROE) is expected to be 12.7% in 2025 [6]

Investment Rating - The report maintains an "Outperform" rating for Sino Biopharmaceutical [2][11][17] Core Insights - The company achieved revenue of CNY 28.9 billion in FY24, reflecting a year-on-year growth of 10.2%, with a gross profit margin of 81.5% [3][14] - Innovative products are expected to drive double-digit revenue growth in FY25, particularly in oncology and surgery/analgesia segments [4][15] - The company plans to launch seven innovative products in FY25, including key candidates such as TQB3616 and Meloxicam [5][16] Financial Performance - FY24 revenue was CNY 28.9 billion, with a net profit of CNY 3.5 billion, marking a 50.1% increase year-on-year [3][14] - R&D expenses increased by 15.6% to CNY 5.1 billion, representing 17.6% of total revenue [3][14] - The company expects revenue to reach CNY 32.4 billion in FY25, a growth of 12.3% year-on-year [6][16] Product Segments - Revenue from innovative drugs reached CNY 12.1 billion, up 22% year-on-year, while generics contributed CNY 16.8 billion, growing 3% [4][15] - The oncology segment generated CNY 10.7 billion, driven by strong sales of key products [18] - The surgery/analgesia segment saw a revenue increase of 19% to CNY 4.5 billion, supported by the sales of Flurbiprofen Cataplasms [18] Future Outlook - The company anticipates significant contributions from new product launches and clinical data readouts in 2025 [5][16] - Management expects the liver diseases segment to introduce one innovative drug and five biosimilars/generics between 2025 and 2027 [18] - The report projects a target price of HKD 5.52 for the stock, based on a P/E ratio of 25.2x for 2025 [6][17]