Core Viewpoint - Fosun Pharma's subsidiary Shanghai Fuhong Hanlin Biotech has received approval from the European Commission for the marketing authorization applications (MAAs) of two monoclonal antibody injection products, BILDYOS® and BILPREVDA® [1] Group 1 - The approved products, BILDYOS® (60 mg/mL) and BILPREVDA® (120 mg/1.7 mL), are based on the project code HLX14 [1] - The marketing authorization allows for the sale of these products in all EU member states as well as in Iceland, Liechtenstein, and Norway, which are part of the European Economic Area [1]

Core Viewpoint - Fosun Pharma's subsidiary, Fuhong Hanlin, has received EU approval for two denosumab injection products, BILDYOS® and BILPREVDA®, targeting osteoporosis treatment in high-risk postmenopausal women and men [1] Group 1 - The approved products are indicated for the treatment of osteoporosis in high-risk populations [1] - HLX14 has also been approved in the US for specific osteoporosis indications and its registration application in Canada has been accepted [1] - The commercialization rights for HLX14 have been granted to Organon LLC, with Fosun Pharma set to enjoy related rights under the licensing agreement [1]

Core Insights - Guangzhou Legu Jianjia Rehabilitation Hospital Co., Ltd. has been established with a registered capital of 80 million yuan [1] - The company is involved in various services including the sale of Class I medical devices, health consulting services (excluding diagnostic services), remote health management services, elderly care services, and hospital management [1] - The company is jointly owned by Guangzhou Legu Medical Investment Co., Ltd. and Shanghai Fosun Pingyao Investment Management Co., Ltd., a wholly-owned subsidiary of Fosun Pharma [1] Company Information - Legal representative: Zheng Chunjian [1] - Registered capital: 80 million yuan [1] - Business scope includes: - Sale of Class I medical devices - Health consulting services (excluding diagnostic services) - Remote health management services - Elderly care services - Hospital management [1] Shareholding Structure - Guangzhou Legu Medical Investment Co., Ltd. holds 60.01% of the shares, contributing 48 million yuan [2] - Shanghai Fosun Pingyao Investment Management Co., Ltd. holds 20% of the shares, contributing 16 million yuan [2] - Guangzhou Taibo Rehabilitation Hospital Management Co., Ltd. holds 20% of the shares, contributing 16 million yuan [2]

Group 1 - The core viewpoint of the news highlights the recent stock performance and financial metrics of Fosun Pharma, indicating a decline in stock price and significant net outflow of funds [1][2] - As of September 19, Fosun Pharma's stock price decreased by 2.02% to 30.97 CNY per share, with a total market capitalization of 82.703 billion CNY [1] - The company has seen a year-to-date stock price increase of 26.24%, but a recent decline of 1.74% over the last five trading days [1] Group 2 - Fosun Pharma's main business segments include drug manufacturing and research, with a revenue composition of 45.68% from anti-tumor and immune regulation products, 17.53% from anti-infection products, and 13.83% from metabolic and digestive system products [1] - For the first half of 2025, Fosun Pharma reported a revenue of 19.514 billion CNY, a year-on-year decrease of 4.63%, while the net profit attributable to shareholders increased by 38.96% to 1.702 billion CNY [2] - The company has distributed a total of 12.593 billion CNY in dividends since its A-share listing, with 2.691 billion CNY distributed in the last three years [3]

Group 1 - The core point of the article highlights that southbound funds increased their holdings in Fosun Pharma (02196.HK) by 1.714 million shares on September 18, 2025, while experiencing a net reduction of 1.861 million shares over the past five trading days [1] - Over the last 20 trading days, southbound funds have reduced their holdings in Fosun Pharma for 15 days, resulting in a total net reduction of 26.2152 million shares [1] - As of now, southbound funds hold 321 million shares of Fosun Pharma, accounting for 58.07% of the company's total issued ordinary shares [1] Group 2 - The total number of shares held by southbound funds on September 18, 2025, was 321 million, reflecting a change of 1.714 million shares, or an increase of 0.54% [2] - On September 17, 2025, the total shares held decreased by 4.086 million shares, representing a decline of 1.27% [2] - Fosun Pharma operates in five segments, including pharmaceuticals, medical devices and diagnostics, healthcare services, pharmaceutical distribution and retail, and other pharmaceutical-related businesses [2]

Summary of Fosun Pharmaceutical Conference Call Company Overview - **Company**: Fosun Pharmaceutical (复星医药) - **Industry**: Healthcare and Pharmaceuticals Key Points and Arguments 1. **Turnaround Potential**: Fosun Pharmaceutical is expected to reach a turning point with improved profitability across its business segments, particularly in innovative drugs. The company’s product pipeline is considered undervalued, and the ongoing divestiture of non-core assets is anticipated to enhance its financial condition [1][11][12]. 2. **Stock Performance**: Year-to-date, Fosun's A-shares have increased by 29%, while H-shares have risen by 86%. The disparity in performance is attributed to the narrowing of the A-H share premium from 62% at the beginning of 2025 to 34% currently. The significant rise in the stock price of its subsidiary, Henlius, which is up 274% year-to-date, reflects the market's recognition of its innovative drug pipeline [1][11][12]. 3. **Management Changes and Guidance**: The appointment of a new chairman in June 2025 and the announcement of an employee stock ownership plan for A and H shares indicate a strategic shift. The management has set a target for a 20% CAGR in net profit and a 19% CAGR in sales for innovative drugs from 2024 to 2027, suggesting potential upside compared to market expectations [1][11][12]. 4. **Valuation of New Drugs**: By 2030, new drugs are projected to drive 68% of Fosun's valuation, accounting for 45% of total pharmaceutical sales. The innovative drug pipeline, particularly from Henlius, is valued at RMB 72 billion, with significant contributions from key drugs like HLX43, HLX22, and serplulimab [2][20]. 5. **Asset Divestiture Strategy**: High leverage has been a major investment risk. Since 2024, management has reduced debt through the divestiture of non-strategic assets, generating approximately RMB 50 billion in returns. The company aims to achieve annual cash inflows of RMB 30 billion from asset sales over the next three years to improve its capital structure [3][34]. 6. **Upgraded Ratings and Price Targets**: The rating for A and H shares has been upgraded to "Overweight," with target prices set at RMB 42 and HKD 33, respectively. The expected net profit growth rate for 2025 is 20%, driven primarily by the sales ramp-up of new drugs, which is projected to have a CAGR of 18% from 2025 to 2028 [4][38]. 7. **Research and Development Focus**: Fosun's internal R&D team has strategically prioritized its pipeline, focusing on high-value projects while terminating less promising ones. The company has made significant investments in small molecules, cell and gene therapies, and vaccines, with 61-71% of R&D expenditures directed towards its internal pipeline [26][27]. 8. **Clinical Development and Market Potential**: Key drugs in development, such as HLX43 and HLX22, are showing promising clinical data, with HLX43 positioned favorably in the NSCLC market. The company is also exploring additional indications for its drugs, which could further enhance market potential [15][19][18]. 9. **Financial Metrics**: The current market capitalization is approximately RMB 75.215 billion, with an expected EPS of RMB 1.25 for 2025. The company’s PE ratios are projected at 24.0 for 2025, indicating that the stock is undervalued compared to peers [6][12]. Other Important but Overlooked Content - **Subsidiary Performance**: The performance of subsidiaries like Henlius and Gland Pharma is crucial for Fosun's valuation, with Henlius contributing significantly to new drug sales. The management anticipates improvements in profitability from these subsidiaries in the coming quarters [36][37]. - **Market Dynamics**: The healthcare sector in China is experiencing a rebound, with indices like the Hang Seng Healthcare Index showing significant gains. However, Fosun's past performance has been hindered by high debt levels and a mixed business model, which the company is actively working to address [11][12]. - **Future Catalysts**: Upcoming key data readouts and regulatory submissions for its drugs are expected to be significant catalysts for stock performance and market perception [25][36]. This comprehensive summary captures the essential insights from the conference call regarding Fosun Pharmaceutical's current status, strategic direction, and market outlook.

Group 1 - Recently, Fosun Kerry (Shenzhen) Biotechnology Co., Ltd. was established with a registered capital of 100 million yuan [1] - The legal representative of the new company is Chen Xingrong [1] - The business scope includes medical research and experimental development, cell technology research and application, human stem cell technology development and application, and human genetic diagnosis and treatment technology development [1] Group 2 - The company is wholly owned by Fosun Kerry (Shanghai) Biotechnology Co., Ltd., which is a subsidiary of Fosun Pharma [1]

Core Viewpoint - Citigroup has raised the target price for Fosun Pharma from HKD 25 to HKD 35.3, maintaining a "Buy" rating, reflecting positive adjustments in revenue and earnings forecasts for the years 2025 to 2027 [1] Revenue and Earnings Forecasts - Revenue forecasts for 2025, 2026, and 2027 have been increased by 0.5%, 2%, and 3% respectively [1] - Earnings per share forecasts have been adjusted upward by 3%, 8%, and 6% for the same years [1] Factors Influencing Adjustments - The adjustments are attributed to aggressive employee stock ownership goals, ongoing project monetization potential from external licensing deals, and improved operational efficiency from restructuring the R&D framework [1]

Core Viewpoint - On September 10, 2023, Fosun Kerry (Shenzhen) Biotechnology Co., Ltd. was established with a registered capital of 100 million RMB, focusing on various biotechnology research and development areas [1] Company Summary - The legal representative of the newly established company is Chen Xingrong [1] - The company is wholly owned by Fosun Kerry (Shanghai) Biotechnology Co., Ltd., a subsidiary of Fosun Pharma [1] Industry Summary - The business scope of the new company includes medical research and experimental development, engineering and technology research and experimental development, cell technology research and application, human stem cell technology development and application, human genetic diagnosis and treatment technology development, as well as sales of specialized chemical products and instruments [1]

Group 1 - The top three companies by Hong Kong Stock Connect holding ratios are China Telecom (00728) at 71.84%, Green Power Environmental (01330) at 69.15%, and China Shenhua (01088) at 68.07% [1] - The latest holding ratio rankings for the top 20 companies show significant ownership levels, with companies like Kaisa New Energy (01108) and COSCO Shipping Energy (01138) also exceeding 67% [1] - The recent five trading days saw Alibaba-W (09988) leading in increased holdings with a rise of 143.50 billion, followed by Yingfu Fund (02800) with an increase of 41.59 billion [1][2] Group 2 - The companies with the largest decreases in holdings over the last five trading days include Meituan-W (03690) with a reduction of 12.14 billion, Great Wall Motors (02333) with a decrease of 8.01 billion, and Xiaomi Group-W (01810) with a drop of 7.57 billion [2] - Other notable companies experiencing significant reductions in holdings include Tencent Holdings (00700) and Li Auto-W (02015), with decreases of 4.65 billion and 4.06 billion respectively [2] - The data reflects a dynamic trading environment, with substantial shifts in investor sentiment towards various companies within the Hong Kong market [2]