Core Viewpoint - Jingtai Holdings (02228.HK) is expanding its AI medical footprint by acquiring 90% of Shanghai Siwei Medical Technology Co., Ltd. for a transaction price of 250 million yuan, marking a significant step in its AI healthcare strategy [1][2]. Group 1: Acquisition Details - The acquisition price will be settled entirely in cash, with Siwei Medical projected to generate revenues of 39.61 million yuan and a net profit of 5.25 million yuan for the fiscal year ending December 31, 2024 [1]. - The acquisition values Siwei Medical at a price-to-sales ratio of 7.0 times and a price-to-earnings ratio of 52.9 times [1]. - The board of Jingtai Holdings believes the transaction price is fair and reasonable, aligning with comparable data from five similar listed companies [1]. Group 2: Performance Commitments - The seller and guarantor have committed that Siwei Medical's main business revenue from projects in Shanghai will not be less than 27 million yuan for the fiscal year ending December 31, 2025, indicating a focus on business stability in a specific region [2]. Group 3: Company Background - Siwei Medical, established in 2008, is a high-tech enterprise and the largest provider of remote ECG diagnostic services in China, also involved in AI remote diagnostic innovations [2]. - Jingtai Holdings, founded in 2015 by three MIT physicists, has been deeply engaged in the AI pharmaceutical sector and went public on the Hong Kong Stock Exchange in June 2024 [2]. Group 4: Financial Performance - Jingtai Holdings has reported losses for five consecutive years, with cumulative losses reaching 7.741 billion yuan from 2020 to 2024 [2]. - The company's net losses for the years 2020 to 2024 were 734 million yuan, 2.137 billion yuan, 1.439 billion yuan, 1.914 billion yuan, and 1.517 billion yuan, respectively [2]. Group 5: Stock Performance - Since its listing, Jingtai Holdings' stock price has experienced significant volatility, with a dramatic decline of 74% from September 10 to November 19, 2024 [3]. - As of May 12, 2025, the stock price increased by 3.24%, closing at 4.78 HKD per share [3].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is positioned as a rare asset in the AI for Science sector, aiming to disrupt traditional R&D paradigms and unlock significant market potential [1][14]. - The company has achieved a revenue milestone that qualifies it for commercial status on the Hong Kong Stock Exchange, with a projected revenue growth of 52.75% year-on-year in 2024 [8][14]. - The company is leveraging a strong scientific team, including over 500 scientists, to build a robust data moat and enhance its R&D capabilities [8][14]. Summary by Sections 1. AI for Science as a Rare Asset - The company was founded in 2015 and integrates quantum physics with AI and robotics to provide innovative R&D solutions in pharmaceuticals and materials science [14]. - It has attracted significant investment, raising approximately $732 million, and ranks first among AI-enabled drug discovery companies globally as of December 31, 2023 [17][19]. 2. AI Solutions and Automation Industry - The AI solutions market is expected to grow significantly, particularly in healthcare and materials science, driven by the need for efficient data processing and decision-making [26][30]. - The global automation market is rapidly expanding, with laboratory automation penetration projected to rise from 3.7% in 2022 to 23.2% by 2030 [27][30]. 3. Revenue and Profitability Forecast - The company forecasts revenues of 426.13 million RMB in 2025, 682.64 million RMB in 2026, and 1,095.22 million RMB in 2027, with a projected return to profitability in 2027 [1][8]. - The adjusted net loss is expected to narrow significantly, from 1.52 billion RMB in 2024 to a profit of 42.31 million RMB in 2027 [1][8]. 4. Data and Technological Moat - The company has built a comprehensive data infrastructure, including over 6.5 million high-precision quantitative data points and 100,000 molecular force field parameters, creating a significant barrier to entry [8][14]. - The integration of AI and robotics in its operations allows for a closed-loop system in both dry and wet experiments, enhancing efficiency and data generation [8][14]. 5. Collaborative Pipeline and Market Expansion - The company is advancing multiple collaborative drug pipelines, including a key product in clinical trials for treating advanced solid tumors, and is expanding into new materials and sectors [8][14]. - A recent partnership with a major group is expected to contribute approximately 1 billion RMB to the company's revenue over five years [8][14].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Viewpoints - The company is positioned as a rare asset in the AI for Science sector, aiming to disrupt traditional R&D paradigms and unlock significant market potential [1][14]. - The company has achieved a revenue milestone that qualifies it as a commercial entity under Hong Kong Stock Exchange rules, with a notable reduction in net losses [8][14]. - The integration of dry and wet lab experiments creates a data barrier that strengthens the company's competitive moat [8][14]. - The company is making progress in its collaborative drug pipeline and expanding its client base in new materials and other sectors [8][14]. - Short-term growth is driven by policy incentives, while long-term growth is supported by customer retention and successful project incubation [8][14]. Summary by Sections 1. AI for Science as a Rare Asset - The company, founded in 2015, leverages quantum physics and AI to provide innovative R&D solutions across pharmaceuticals and materials science [14]. - The founding team consists of MIT-trained scientists, enhancing the company's R&D capabilities [8][14]. - The company has raised approximately $732 million from global investors, establishing itself as a leader in AI-enabled drug discovery [17][19]. 2. AI Solutions and Automation Industry - The AI solutions market is expected to grow significantly, particularly in healthcare and materials science [26][30]. - The global automation market is rapidly expanding, with laboratory automation penetration projected to increase from 3.7% in 2022 to 23.2% by 2030 [27][30]. - The convergence of data growth, labor cost increases, and technological integration is driving the growth of AI solutions and automation [34]. 3. Revenue and Profitability Forecast - The company forecasts revenues of RMB 4.26 billion, RMB 6.83 billion, and RMB 10.95 billion for 2025, 2026, and 2027, respectively, with a projected return to profitability by 2027 [1][8]. - The adjusted net loss is expected to narrow significantly over the forecast period, indicating improving financial health [1][8]. 4. Market Trends and Opportunities - The AI drug discovery market is anticipated to grow from RMB 2.76 billion in 2022 to RMB 67.7 billion by 2025, driven by advancements in technology and increased collaboration [41][42]. - The solid-state R&D services market is projected to grow at a CAGR of 27.7%, reaching $20.9 billion by 2030 [52].

Core Insights - The article highlights the significant potential of AI in the healthcare sector, particularly in remote medical services and diagnostics, with a focus on the acquisition of Shanghai Siwei Medical Technology Co., Ltd. by Jingtai Holdings for 250 million yuan [1][2][3] Company Summary - Jingtai Holdings has acquired 90% of Shanghai Siwei Medical, the largest remote ECG diagnostic service provider in China, to enhance its AI healthcare business and support drug development [1][2] - The acquisition will enable Jingtai to integrate clinical, molecular, and imaging data to develop precise and efficient remote diagnostic tools for cardiovascular diseases [2][6] - Jingtai aims to leverage Siwei's extensive structured ECG data and clinical experience to create a high-efficiency remote medical and AI-assisted diagnostic platform [6][7] Industry Summary - Cardiovascular diseases are the leading cause of death in China, accounting for over 45% of total deaths, with a significant market for ECG monitoring, estimated at 21 billion yuan [3][4] - The remote ECG testing market is projected to reach 10 billion yuan by 2022, driven by the increasing demand for advanced healthcare solutions amid a shortage of specialized medical professionals [3][4] - Government policies, such as the "Healthy China 2030" initiative, are promoting the integration of AI in healthcare, encouraging the development of remote medical services [4][5]

Major Events - Jin'an Industrial (02292) received a privatization offer from its controlling shareholder at a premium of approximately 30%, with resumption of trading on May 12 [1] - Jingtai Holdings (02228) plans to acquire 90% of Shanghai Siwei Medical for 250 million yuan, aiming to create an AI-enabled remote electrocardiogram diagnosis platform [1] - China Investment and Financing (01226) is in contact with MCHKI to explore several potential corporate activities following unusual stock price movements [1] - Qiu Tai Technology (01478) reported camera module sales of 33.229 million units in April, an increase of 8.4% month-on-month but a decrease of 20.1% year-on-year [1] - Stone Pharmaceutical Group (01093) received approval for clinical trials of SYH2046 in the United States [1] - Fosun Pharma (02196) subsidiary Junji Health obtained FDA approval for drug clinical trials [1] - Rongchang Bio (09995) received approval for the marketing of Aidiqi® for treating HER2-positive advanced breast cancer with liver metastasis in China [1] - Livzon Pharmaceutical (01513) received approval for the marketing of injectable aripiprazole microspheres [1] - GAC Group (02238) reported April automobile production of 108,600 units, a year-on-year decline of 25.74% [2] - China Overseas Development (00688) reported contract property sales of approximately 20.164 billion yuan in April, a year-on-year decrease of 7.5% [2] Share Buybacks/Reductions - China Hongqiao (01378) repurchased 19.667 million shares for 273 million HKD on May 9 [1] - AIA Group (01299) repurchased 1.5 million shares for 92.1915 million HKD on May 9 [1] - Cathay Securities (02611) repurchased 1.6906 million A-shares for 29.3356 million yuan on May 9 [1] - Times Electric (03898) repurchased 610,300 shares for 19.7008 million HKD on May 9 [1] - East Asia Bank (00023) acquired 52.8 million shares from Sumitomo Mitsui Banking Corporation [1] - Shandong Molong (00568) saw shareholder Zhimo Holdings reduce its holdings by 28.81 million H-shares [1] Operating Performance - Longyuan Power (00916) achieved a power generation volume of 6.9064 million MWh in April, a year-on-year increase of 4.85% [2] - New天绿色能源 (00956) reported a power generation volume of 1.4778 million MWh in April, a year-on-year increase of 16.91% [2] - Jianye Real Estate (00832) achieved a total property contract sales amount of 2.71 billion yuan in the first four months, a year-on-year increase of 4.8% [2] - China Overseas Hongyang Group (00081) reported a cumulative contract sales amount of 9.556 billion yuan in the first four months, a year-on-year decrease of 14.1% [2] - Times China Holdings (01233) reported a cumulative contract sales amount of approximately 1.81 billion yuan in the first four months, a year-on-year decrease of 29.87% [2] - Agile Property Holdings (01813) reported a pre-sale amount of 509 million yuan in April, a year-on-year decrease of 47.5% [2] - Greenland Hong Kong (00337) reported contract sales of approximately 880 million yuan in the first four months, a year-on-year decrease of 69.3% [2]

Investment Rating - The report maintains a "Buy" rating for XtalPi, indicating an expected return exceeding 15% over the next 12 months [21]. Core Insights - XtalPi is positioned as an AI-driven innovative R&D platform with stable revenue growth, focusing on drug discovery solutions and intelligent automation services [1][2]. - The company has established strategic partnerships with leading pharmaceutical companies, enhancing its capabilities in drug discovery and automation [1]. - Revenue is projected to grow from RMB 174 million in FY23 to RMB 251 million in FY24 (44% YoY) and further to RMB 434 million in FY25 (73% YoY) [1][4]. Summary by Sections Revenue and Growth - XtalPi's revenue is forecasted to increase significantly, with FY24E revenue at RMB 251 million and FY25E at RMB 434 million, reflecting growth rates of 44% and 73% respectively [4][16]. - The company has a diverse revenue stream from both drug discovery and intelligent automation, which are on stable growth trajectories [3]. Financial Position - XtalPi completed two financing arrangements in 2025, raising HKD 3.2 billion to strengthen its cash reserves and support future growth plans [3]. - The financial summary indicates a net loss reduction from RMB 1,906 million in FY23 to RMB 1,491 million in FY24E, and further to RMB 310 million in FY25E [4][16]. Partnerships and Collaborations - The company has a broad network of partnerships across various industries, including collaborations with GCL Group for new energy materials and with Guangzhou University of Chinese Medicine for traditional medicine R&D [2]. - XtalPi's partnerships with major firms like Microsoft China and JW Pharmaceuticals highlight its potential in biomedicine and new materials innovation [2]. Valuation - The target price for XtalPi is set at HKD 7.57 based on a discounted cash flow (DCF) model, with a weighted average cost of capital of 9.64% and a terminal growth rate of 3.0% [3][13].

Investment Rating - The report maintains a "BUY" rating for XtalPi, indicating a potential return of over 15% over the next 12 months [20]. Core Insights - XtalPi is leveraging its AI-driven innovative R&D platform to achieve stable revenue growth across its two core businesses: drug discovery solutions and intelligent automation solutions. The company has established strategic collaborations with leading pharmaceutical firms, enhancing its market position [9]. - Revenue is projected to grow significantly, from RMB 174 million in FY23 to RMB 251 million in FY24 (+44% YoY), and further to RMB 434 million in FY25 (+73% YoY) [2][9]. - The company has strengthened its financial position by completing two fundraising placements in 2025, raising HK$3.2 billion to enhance cash reserves and fund future growth initiatives [9]. Financial Summary - Revenue growth from FY22 to FY26 is expected to be substantial, with a forecast of RMB 841 million by FY26, reflecting a growth rate of 93.8% YoY [2][15]. - Adjusted net profit is projected to improve from a loss of RMB 1,491 million in FY24 to a loss of RMB 86 million by FY26 [2][12]. - The company’s operating profit is expected to improve significantly, moving from a loss of RMB 640 million in FY24 to a loss of RMB 158 million by FY26 [12][15]. Share Performance - The current price of XtalPi is HK$ 6.68, with a target price set at HK$ 7.57, indicating an upside potential of 13.3% [4]. - The market capitalization of XtalPi is approximately HK$ 26.85 billion [4]. Shareholding Structure - Major shareholders include Tencent Holdings with 10.9% and QuantumPharm ROC with 7.4% [5]. Partnerships and Collaborations - XtalPi has formed diverse partnerships across various industries, including collaborations with GCL Group for new energy materials and with Guangzhou University of Chinese Medicine for TCM drug R&D [9]. - The company is also working with Microsoft China on biomedicine innovations and has a joint venture with Indonesia's Sinar Mas Group to promote AI applications across different sectors [9]. Valuation - The target price of HK$ 7.57 is derived from a DCF model, with a WACC of 9.64% and a terminal growth rate of 3.0% [10].

Investment Rating - The report initiates coverage with a "Buy" rating and a target price of HKD 7.25, representing a potential upside of 24.8% from the current price of HKD 5.81 [1][17][39]. Core Insights - The company, QatmPharm, leverages advanced quantum physics, AI, and robotic automation to accelerate the discovery of new drugs and materials, positioning itself as a global leader in innovative R&D platforms [1][18]. - QatmPharm's integrated technology platform combines high-performance cloud computing, AI, and standardized robotic automation to provide comprehensive drug and materials science R&D solutions [1][12][22]. - The company has established significant partnerships with major global biotech and pharmaceutical firms, including 16 of the top 20 companies by revenue in 2022, enhancing its credibility and market presence [1][14][37]. - Revenue projections indicate substantial growth, with expected total revenues of RMB 306 million, RMB 562 million, and RMB 911 million for FY24E, FY25E, and FY26E respectively, despite anticipated net losses [1][39]. Summary by Sections Drug Discovery Solutions - QatmPharm's drug discovery solutions encompass a modular approach covering the entire drug discovery and research process, including target validation, hit identification, lead generation, and optimization [1][71]. - As of May 13, 2024, the company has secured approximately 159 agreements related to its drug discovery solutions, with some entering the IND enabling stage [1][49]. Financial Analysis - The company is projected to incur net losses of RMB 660 million, RMB 2.81 billion, and RMB 230 million for FY24E, FY25E, and FY26E respectively, while revenues are expected to grow significantly [1][39]. - Historical revenue growth rates show a year-on-year increase of 76%, 112%, and 31% for FY21A, FY22A, and FY23A respectively [1][72]. Market Opportunities - The report highlights significant market opportunities in the AI-driven R&D services sector, with the global drug development outsourcing market expected to grow at a CAGR of 14.9% from USD 12.3 billion in 2023 to USD 32.5 billion by 2030 [1][38]. - The solid-state R&D services market is projected to grow at a CAGR of 27.7%, while the automated R&D laboratory market is expected to grow at a CAGR of 39.6% [1][38]. Strategic Collaborations - QatmPharm has formed strategic collaborations with leading companies such as Pfizer and Johnson & Johnson, which have significantly contributed to its growth and market recognition [1][21][70]. - The company maintains a strong investor base, attracting notable private equity and strategic investors, enhancing its operational capabilities and growth potential [1][14][70].

Investment Rating - Initiate at BUY with a target price of HK$7.25, representing an upside of 24.8% from the current price of HK$5.81 [1]. Core Insights - The report highlights QuantumPharm as a leading company leveraging quantum physics, AI, and robotics to accelerate drug and material discovery, with a focus on integrated technology platforms [4][9]. - The company has established significant collaborations, including a strategic partnership with Pfizer, to enhance its drug R&D capabilities [42][72]. - The report identifies substantial market opportunities in AI-powered R&D service industries, with projected growth rates across various sectors [7][24]. Summary by Sections Investment Thesis - QuantumPharm is positioned to capitalize on the growing demand for AI-powered R&D services, with a well-established integrated technology platform [3]. - The company has entered into approximately 159 agreements for drug discovery solutions, with a notable increase in collaboration programs from 18 in 2021 to 81 in 2023 [5]. Market Opportunities - The global drug R&D outsourcing service market is expected to grow at a CAGR of 14.9%, from US$12.3 billion in 2023 to US$32.5 billion in 2030 [7]. - The solid-state R&D service market is projected to increase at a CAGR of 27.7%, from US$3.8 billion in 2023 to US$20.9 billion in 2030 [7]. - The automated R&D lab market is anticipated to grow at a CAGR of 39.6%, from US$5.9 billion in 2023 to US$60.7 billion in 2030 [7]. - The material science R&D market is expected to expand at a CAGR of 12.8%, from US$76.3 billion in 2023 to US$177.9 billion in 2030 [7]. Business Model - QuantumPharm's business model integrates AI and robotic automation to enhance drug and material discovery processes, focusing on solid-state R&D and automated chemical synthesis [13][14]. - The company has developed a proprietary integrated technology platform that combines cloud supercomputing, quantum physics-based computation, and AI to optimize R&D efficiency [35][36]. Collaborations and Partnerships - The strategic collaboration with Pfizer aims to develop hybrid physics and AI-powered technologies to accelerate drug R&D [43][72]. - QuantumPharm has also partnered with CK Life Sciences to create an AI-powered tumor vaccine R&D platform [23][44]. Financial Analysis - The company's R&D expenditure has increased significantly, from RMB214.4 million in 2021 to RMB480.3 million in 2023, reflecting its commitment to growth [75]. - The customer base has expanded from 75 in 2021 to 187 in 2023, indicating strong demand for its services [77].