Investment Rating - The report gives a "Buy" rating for China Biopharmaceuticals (1177) for the first time [1]. Core Views - China Biopharmaceuticals is a leading large pharmaceutical company with strong commercialization capabilities, firmly committed to an innovative strategic transformation [1]. - The company has successfully transitioned from a generics-focused business to a leading player in innovative drugs, with a rich pipeline of innovative products [1][4]. - The revenue for 2023 was 26.376 billion yuan, a year-on-year decrease of 8.71%, while the net profit attributable to shareholders was 2.33 billion yuan, down 8.32% year-on-year [1][8]. Summary by Sections Company Overview - China Biopharmaceuticals is a subsidiary of Charoen Pokphand Group, established in 1921, and entered the Chinese pharmaceutical market in the 1990s [4]. - The company has evolved from primarily generics to innovative drugs, with significant investments in various pharmaceutical companies [4][5]. Financial Performance - The company’s total revenue increased from 20.951 billion yuan in 2018 to 26.376 billion yuan in 2023, with a compound annual growth rate (CAGR) of 4.57% [8][10]. - The innovative drug revenue for 2023 was 9.89 billion yuan, up 13.3% year-on-year, accounting for 37.8% of total revenue [1][12]. Innovation and R&D - The company has a pipeline of 57 innovative products, with over 10 expected to launch between 2024 and 2026 [1][12]. - R&D investment for innovative drugs accounted for 84% of total R&D spending, with a focus on four core therapeutic areas [1][14]. Market Position and Strategy - The company has cleared most risks associated with centralized procurement, with generics revenue showing stability [1][19]. - The oncology sector has become the largest revenue contributor, with sales growing from 3.188 billion yuan in 2018 to 8.801 billion yuan in 2023, reflecting a CAGR of 22.52% [10][12]. Future Outlook - Revenue projections for 2024, 2025, and 2026 are 31.730 billion yuan, 36.961 billion yuan, and 41.159 billion yuan, respectively, with expected growth rates of 21%, 16%, and 11% [2][12]. - The net profit attributable to shareholders is projected to be 2.583 billion yuan, 3.129 billion yuan, and 3.626 billion yuan for the same years, with growth rates of 11%, 21%, and 16% [2][12].

浦银国际研究 公司研究|医药行业 中国生物制药（1177.HK）：BI 战略合作 阳景 浦 首席医药分析师 银 开启，国内肿瘤管线更上层楼 Jing_yang@spdbi.com 国 (852) 2808 6434 际 ● 公司和勃林格殷格翰达成战略合作，共同在中国大陆开发和商业化 胡泽宇 CFA BI 肿瘤管线：今天（4月8 日）公司宣布和勃林格殷格翰（Boehringer 医药分析师 Ingelheim, BI）达成战略合作，共同在中国大陆开发和商业化 BI肿瘤管 ryan_hu@spdbi.com 线，包括 3 个处于临床开发阶段的资产及若干早期资产。目前交易对 (852) 2808 6446 价未披露。产品收入将计入中生财务报表，预计将实现双位数利润率。 ● 此战略合作是一项正面惊喜，显示出跨国药企对公司强大商业化能 2024年4月9日 力的认可和公司出色的 BD 能力：跨国药企与国内大药企达成多产品 战略合作实属罕见，一方面显示出 BI对公司在国内肿瘤领域商业化能 公 力的高度认可，另一方面，公司能够赢得跨国大药企的信任，也说明 评级 司 公司人才文化日趋国际化，BD 能力出色。 研 究 ...

Investment Rating - The report maintains a "Buy" rating for China Biologic Products (1177 HK) with a target price of HKD 4.80, indicating a potential upside of 69.6% from the current closing price of HKD 2.83 [1][7]. Core Insights - The report highlights a significant strategic partnership with Boehringer Ingelheim (BI) to develop and commercialize BI's oncology pipeline in mainland China, which includes three late-stage clinical assets and several early-stage candidates. The combined peak sales for these products in mainland China are projected to reach RMB 5 billion by 2030, with a double-digit profit margin expected from the sales profits [1]. - The report emphasizes the differentiated targets and indications in the oncology pipeline, particularly focusing on three key products: Brigimadlin, Zongertinib, and BI 764532, each with promising clinical trial results and expected market entry dates in China ranging from 2025 to 2028 [1][5]. Financial Summary - Revenue projections show a gradual increase from RMB 26,026 million in 2022 to RMB 38,337 million by 2026, with a compound annual growth rate (CAGR) of approximately 12.6% from 2023 to 2024 [4][8]. - Net profit is expected to recover from RMB 2,332 million in 2023 to RMB 3,859 million by 2026, reflecting a positive growth trajectory [4][8]. - The earnings per share (EPS) is projected to rise from RMB 0.13 in 2023 to RMB 0.21 in 2026, indicating a strong recovery and growth potential [4][8]. Clinical Pipeline Overview - Brigimadlin, a first-in-class MDM2-p53 antagonist, is in late-stage trials for DDLPS and is expected to launch in China by 2025. Clinical trial results show an overall response rate (ORR) of 19.0% and a disease control rate (DCR) of 84.8% [1][5]. - Zongertinib, a selective HER2 inhibitor, has shown promising results in treating NSCLC with an ORR of 73.9% and is anticipated to be available in China by 2027 [1][5]. - BI 764532, a DLL3/CD3 bispecific T-cell engager, is in early-stage trials and is expected to complement existing treatments for SCLC, with a projected launch in 2028 [1][5].

浦银国际研究 公司研究|医药行业 中国生物制药（1177.HK）：创新药有望推 阳景 浦 首席医药分析师 银 动 2024 年达成双位数收入增速指引 Jing_yang@spdbi.com 国 (852) 2808 6434 际 2023 年业绩弱于预期，主要系反腐背景下仿制药收入不及预期所致。随 胡泽宇 CFA 着创新药收入的增长及集采风险的出清，2024 年收入有望实现双位数增 医药分析师 速。5个BD交易有望于24年达成。维持 “买入”评级和目标价4.5港元。 ryan_hu@spdbi.com ● 2023年整体业绩弱于预期：2023年全年公司实现收入262亿元（+0.7% (852) 2808 6446 YoY），归母净利润 23.3 亿元（-8.3% YoY），经调整 Non-HKFRS 归母净 利润25. 9 亿元（+1.5% YoY）。全年收入和经调整归母净利润均低于我 2024年4月3日 们预期和彭博一致预期，主要由于肿瘤、肝病、外科麻醉等板块收入 公 不及预期。考虑到创新药全年收入为 98.9 亿元，基本符合公司之前指 司 评级 引，我们推测主要是反腐背景下仿制药收入不及预期所致。从2H2 ...

Investment Rating - The report maintains a "Buy" rating for China Biologic Products Holdings, with a target price of 3.02 HKD [1]. Core Views - The company reported a revenue of 26.2 billion HKD for 2023, a year-on-year increase of 0.7% (excluding discontinued operations), while the net profit attributable to shareholders was 2.33 billion HKD, down 8.3% year-on-year [1]. - The innovative drug segment achieved a revenue of 9.89 billion HKD, growing 13.3% year-on-year, and accounted for 37.8% of total revenue, an increase of 4.3 percentage points from the previous year [1]. - The company is focusing on innovation and has been optimizing its asset and business structure since 2023, including divesting non-core businesses [1]. Summary by Sections Financial Performance - Revenue for 2023 was 26.2 billion HKD, with a net profit of 2.33 billion HKD, reflecting a decline due to underperformance from associates [1]. - Adjusted non-HKFRS net profit was 2.59 billion HKD, a 1.5% increase year-on-year [1]. Innovative Drug Segment - The core innovative drug, Anlotinib, is expanding its commercialization potential with multiple combination therapies entering clinical trials [1]. - The company has introduced nine potential products since 2021, with significant progress in clinical trials for key drugs expected to contribute to revenue growth [1]. Generic Drug Segment - The generic drug segment remains promising, with several products entering the centralized procurement range, and new biosimilars launched in 2023 expected to drive growth [1]. Organizational Restructuring - The company has sold off its non-core pharmaceutical distribution businesses to focus on innovative drug development and enhance its global presence [1]. Earnings Forecast - Projected revenues for 2024-2026 are 29.84 billion HKD, 33.69 billion HKD, and 37.94 billion HKD, respectively, with adjusted non-HKFRS net profits expected to be 2.98 billion HKD, 3.38 billion HKD, and 3.88 billion HKD [1].

交银国际研究 公司更新 医药 收盘价 目标价 潜在涨幅 2024年4月1日 港元3.02 港元4.80↑ +59.0% 中国生物制药 (1177 HK) 2023 业绩韧性强，研发成果加速兑现有望驱动增速复苏，上调目标价  2023内地业务利润较快增长，降本增效成果显著：2023收入增长0.7%至 个股评级 262亿元（人民币，下同），增速符合我们的预期；创新产品（包括生物 买入 类似药）收入增长13.3%至99亿元，占比从2022年的33%进一步提升至 38%。分治疗领域看，肿瘤领域全年收入下滑4.2%，但2H23在行业整治 中依旧录得 2%的增长；其余核心板块均保持稳定或录得正增长：肝病- 1年股价表现 0.4%、呼吸+1.4%、外科+9.0%、心脑血管+2.5%。全年持续经营业务的经调 1177 HK 恒生指数 整净利润增长1.5%，剔除F-star等海外业务的影响后，内地业务经调整净 10% 5% 利润增长13.3%。经营利润率持续微升0.2ppts至20.8%，得益于销售及管 0% -5% 理费用的有效管控（费用率-2.8ppts至42.2%），营销人员数量减少4%的 -10% -15% 同时、人 ...

Investment Rating - The report maintains an "OUTPERFORM" rating for Sino Biopharmaceutical [3][5][9]. Core Views - The company achieved a revenue of RMB 26.2 billion in 2023, a slight increase of 0.7%, with innovative product revenue reaching RMB 9.9 billion, up 13.3% year-on-year. Innovative products now account for 38% of total revenue [4][9]. - The operational efficiency of the company continues to improve, with a decrease in sales management expense ratio to 42.2%, down 2.8 percentage points from 2022. R&D expenses were RMB 4.4 billion, representing a 5.7% increase, with the R&D expense ratio at 16.8% [4][5][9]. - The company is focusing on four major therapeutic areas: oncology, hepatology, respiratory, and surgery/analgesia, with a strong pipeline of innovative products expected to drive future growth [4][9]. Summary by Sections Financial Performance - In 2023, the gross profit margin was 81.0%, with sales expenses of RMB 9.2 billion and administrative expenses of RMB 1.9 billion. The adjusted net profit attributable to the parent company was RMB 2.6 billion, reflecting a 1.5% increase [4][9]. - Revenue forecasts for 2024 and 2025 have been adjusted to RMB 29.6 billion and RMB 33.5 billion, respectively, with expected year-on-year growth of 12.9% and 13.4% [5][9]. Product Pipeline and Innovation - The company has 11 innovative products in the market, including Tianqingganmei and anlotinib, with several new products expected to be approved in 2024 [4][9]. - The company has submitted NDA for KRAS G12C and is advancing in the development of various drugs in the hepatology and respiratory fields, indicating a robust pipeline [4][9]. Operational Efficiency - The report highlights a continuous improvement in operational efficiency, with a 4% increase in per capita marketing output in 2023. The focus on core business and divestment of non-core operations is expected to further enhance profit margins [4][5][9].

智通财经APP讯，中国生物制药(01177)发布截至2023年12月31日止年度业绩，该集团期内取得持续经营业务收入261.99亿元(人民币，下同)，同比增加0.67%;股东应占溢利23.32亿元，同比减少8.32%;每股基本盈利12.59分;拟派发末期股息每股3港仙。 公告称，一直以来，集团十分重视研发，以结合自主创新、联合开发及创仿开发的研发理念，不断提升研发水平和速度，并视其为可持续发展的基础，加大研发的资金投入。截至2023年12月31日止年度，研发总开支约470427万元，占集团收入约18.0%，当中大部份已计入损益表中。于报告期内，创新药及生物药的研发投入占比超过77%，投入金额同比增加约10%;抗肿瘤领域研发投入占比约71%，投入金额同比增加超过1%。 截止报告期末，集团共有43个肿瘤领域的创新候选药物处在临床及以上开发阶段，包括5个产品处在上市申请阶段，4个产品处在临床III期，13个产品处在临床II期，以及21个产品处在临床I期。另外，集团还有17个肿瘤领域的生物类似药或仿制药候选药物处在临床及以上开发阶段，包括7个产品处在上市申请阶段，2个产品处在关键临床，以及8个产品处在生物相等性(BE ...

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 26.20 billion, a slight increase of 0.7% compared to RMB 26.03 billion in 2022[2] - The profit attributable to equity holders of the parent decreased by 8.3% to RMB 2.33 billion from RMB 2.54 billion in the previous year[2] - Adjusted net profit attributable to the parent under non-HKFRS increased by 1.5% to RMB 2.59 billion from RMB 2.55 billion[2] - The company recorded revenue of approximately RMB 2,619,941,000, representing a year-on-year growth of about 0.7%[23] - Profit attributable to equity holders decreased to approximately RMB 233,194,000, a decline of about 8.3% compared to the previous year[23] - The net profit attributable to the company's shareholders for the year was RMB 5,097,398 thousand, up from RMB 5,002,618 thousand in 2022, reflecting an increase of approximately 1.89%[52] - The company reported a total comprehensive income for the year of RMB 5,187,385 thousand, compared to RMB 4,289,080 thousand in 2022, representing an increase of approximately 20.93%[53] Research and Development - Research and development expenses as a percentage of revenue rose to 16.8%, up by 0.8 percentage points from 16.0%[2] - Research and development (R&D) expenses totaled approximately RMB 4,704.27 million, accounting for about 18.0% of the group's revenue, with a year-on-year increase of approximately 10% in innovative and biological drug R&D investment[36] - The group submitted 841 patent applications and received 264 patent grants during the reporting period, totaling 4,311 effective patents and patent applications as of the end of the reporting period[36] - The company continues to focus on R&D in four major therapeutic areas: oncology, liver disease, respiratory, and surgical/pain management[138] Product Development and Pipeline - Innovative product revenue reached RMB 9.89 billion, representing a significant growth of 13.3% from RMB 8.73 billion[2] - The proportion of innovative product revenue to total revenue increased to 37.8% from 33.5%[2] - The company has 145 products under development, including 60 oncology drugs, 9 liver disease drugs, 31 respiratory drugs, and 15 surgical/pain relief drugs, with 67 classified as innovative products[35] - The company has a strong product pipeline in oncology, liver disease, respiratory, and surgical/pain management sectors[4] - The company has 43 innovative drug candidates in oncology at clinical stages, with 7 innovative drugs and 9 biosimilars expected to be approved between 2024 and 2026[11] - The company has 6 innovative drug candidates in the liver disease field, with 2 biosimilars expected to be approved between 2024 and 2026[14] - The company has 8 innovative drug candidates in the respiratory field at clinical stages, with 1 product in the listing application stage and 4 in Phase II clinical trials, expecting 1 innovative drug and 11 biosimilars or generics to be approved in the next three years (2024-2026)[16] Market and Economic Context - In 2023, China's GDP reached RMB 126 trillion, growing by 5.2% year-on-year[8] - The pharmaceutical manufacturing industry's revenue in Q1 2023 was RMB 674.09 billion, a decrease of 3.3% year-on-year, with total profits down by 19.9% to RMB 89.22 billion[8] - In 2023, 126 new drugs were added to the national medical insurance catalog, bringing the total to 3,088[9] - The average price reduction for the eighth and ninth batches of centralized procurement was 56% and 58%, respectively[9] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.03 per share, totaling an annual dividend of HKD 0.05 per share[2] - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2023, down from HKD 0.06 in 2022[88] Financial Position and Assets - The company had cash and bank balances of approximately RMB 945,188,000 and total financial reserves of approximately RMB 2,112,999,000 as of December 31, 2023[23] - The total assets of the group were approximately RMB 63,604.82 million, with total liabilities of approximately RMB 25,434.87 million, resulting in a debt-to-asset ratio of about 40.0%[42] - The group had short-term loans of approximately RMB 11,135.94 million and long-term loans of approximately RMB 1,057.94 million as of December 31, 2023, compared to RMB 6,217.15 million and RMB 3,933.86 million, respectively, on December 31, 2022[40] Corporate Governance and ESG - The company achieved a total of 651 ESG indicators managed through its digital platform, covering all key member enterprises' ESG performance management[45] - The company has not experienced any major quality safety incidents or recalls during the year, ensuring effective operation of its quality safety management system[46] - The company has been recognized with an MSCI ESG rating upgrade to A and ranked in the top 9% of the global pharmaceutical industry by S&P CSA for the second consecutive year[46] - The company has implemented a responsible supply chain management system, achieving a 100% dissemination rate of key supplier behavior guidelines and over 90% signing rate[45] Strategic Focus and Future Plans - The company is focused on innovation and aims to become a leading global pharmaceutical enterprise[5] - The company plans to launch over ten innovative products in the next three years, with more than thirty additional innovative products expected to be launched by 2030[47] - The company aims to accelerate growth in 2024 through enhanced R&D efficiency and quality in its key therapeutic areas[48] - The company is actively pursuing a dual-path internationalization strategy to bring global pharmaceutical innovations to China and expand into new markets[151]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 15.28 billion, a slight increase of 0.5% compared to RMB 15.19 billion in the same period of 2022[8]. - The net profit attributable to shareholders for the same period was RMB 1.26 billion, representing a decrease of 34.5% from RMB 1.92 billion year-on-year[11]. - Adjusted net profit under non-HKFRS for the six months was RMB 1.48 billion, up 1.2% from RMB 1.46 billion in the previous year[10]. - In Q2 2023, the company reported revenue of RMB 8.63 billion, a significant increase of 30.0% from RMB 6.64 billion in Q2 2022[9]. - The adjusted net profit for Q2 2023 was RMB 960 million, reflecting a growth of 20.7% compared to RMB 800 million in Q2 2022[9]. - The decline in net profit attributable to shareholders was primarily due to the underperformance of an associated company compared to the previous year[9]. - The financial results indicate a stable revenue stream with a focus on innovative drug development and market expansion strategies[8]. - The basic earnings per share based on the adjusted net profit attributable to the parent company rose by 1.8% to RMB 7.96[12]. - The profit attributable to equity holders of the parent company for the first half of 2023 was RMB 1,258,784,000, compared to RMB 1,921,037,000 in the same period of 2022, reflecting a decline of approximately 34.4%[81]. Innovative Drug Development - Innovative drug revenue reached RMB 3.86 billion, an increase of 10.9% year-on-year, accounting for 25.3% of total revenue[8]. - The company is transitioning from a generics-based model to a fully innovative approach, with the revenue contribution from innovative drugs increasing year by year[14]. - The company has a strong pipeline of products in oncology, liver disease, respiratory, and pain management, with several key drugs already in the market[16]. - The company launched two innovative products during the reporting period and received approval for two biosimilars, focusing on oncology, liver disease, respiratory, and surgical/pain treatment areas[21]. - The company expects to have 7 innovative drugs and 9 biosimilars or generics approved for market in the oncology field over the next three years (2023-2025)[23]. - The group has 127 products in development, including 60 oncology drugs, 10 liver disease drugs, 21 respiratory drugs, and 17 surgical/pain relief drugs, with 69 of these being Class I innovative products[37]. - The group anticipates that 1 innovative drug and 8 biosimilars or generic drugs in the respiratory system field will be approved for market launch in the next three years (2023-2025)[26]. - The group expects to launch 1 innovative drug and 10 biosimilars or generic drugs in the surgical/pain relief field in the next three years (2023-2025)[29]. Research and Development - The company continues to focus on core business performance, adjusting for non-cash items and contributions from associated companies[10]. - Total R&D expenditure for the six months ended June 30, 2023, was approximately RMB 2,604.95 million, accounting for about 17.1% of total group revenue[39]. - The company reported an increase in research and development costs to RMB 2,357,257 thousand from RMB 2,048,604 thousand, reflecting a growth of 15.06%[54]. - The company has established research centers recognized for their contributions to drug development, particularly in liver disease and oncology[17]. Market Position and Recognition - The company has been recognized as a top pharmaceutical company, ranking in the "Top 50 Global Pharmaceutical Companies" by Pharmaceutical Executive for five consecutive years[14]. - The company has been included in multiple indices, such as the MSCI Global Standard Index and the Hang Seng Index, reflecting its strong market position[20]. - The group was recognized as one of the 88 selected companies in the "Sustainable Development Yearbook (China Edition) 2023" by S&P Global, highlighting its commitment to ESG management[50]. Financial Position and Cash Flow - The group maintains a strong cash position with total cash reserves of approximately RMB 1,960.9 million, including RMB 1,157.7 million in cash and bank balances[30]. - The group reported a net cash position of approximately RMB 424,812 million as of June 30, 2023, down from RMB 443,625 million at the end of 2022[45]. - The total cash and cash equivalents at the end of the period were RMB 3,293,964 thousand, down from RMB 6,065,442 thousand at the end of the same period last year[59]. - The company’s cash flow from financing activities showed a net outflow of RMB 4,042,087 thousand, compared to RMB 1,460,527 thousand in the previous year, indicating a substantial increase in cash outflow[59]. Corporate Governance and Shareholder Information - The company has complied with the corporate governance code as per the listing rules, except for the absence of two independent non-executive directors at the annual general meeting[122]. - The audit committee consists of four independent non-executive directors, ensuring compliance with relevant listing rules[125]. - The company’s directors and key executives hold significant shares, with Xie Qirun holding approximately 12.13% of the total issued share capital[107]. - The company aims to attract and retain top talent through the 2023 stock option plan, which is effective for 10 years[116]. Regulatory and Market Environment - The new regulations from the National Healthcare Security Administration are expected to alleviate price reduction pressures for innovative drugs, benefiting their development[21]. - The average price drop for the 39 drugs selected in the eighth batch of national centralized procurement was 56%, indicating a shift towards normalized and institutionalized procurement management[21].