Core Viewpoint - The company reported strong performance in 1H25, exceeding expectations primarily due to higher-than-expected income from Merck's exercise of rights [1]. Financial Performance - Revenue for 1H25 reached 612 million yuan, representing a year-on-year increase of 21.5% [1]. - Net profit attributable to shareholders was 328 million yuan, showing a year-on-year growth of 58.8% [1]. - The company received 85 million USD from Merck for global commercialization rights of Pimiatin, contributing significantly to revenue [1]. Development Trends - The company has increased R&D expenditure by 6% while reducing management expenses by 13%, leading to improved profitability [1]. - The company aims to keep operational cash consumption within 570 million yuan for the year, indicating a positive outlook for profitability [1]. - Progress on core pipelines includes the acceptance of the NDA for Pimiatin in China and the initiation of registration clinical trials for Ipagotini [1]. Pipeline Progress - The company is advancing its early-stage pipeline with ongoing clinical studies for oral PD-L1 ABSK043 and FGF2/3 inhibitor ABSK061 [2]. - ABSK061 has completed the first patient enrollment for achondroplasia and is moving forward with a Phase II trial for gastric cancer in combination with ABSK043 [2]. - The new generation brain-penetrable PRMT5-MTA inhibitor ABSK131 has also commenced patient dosing [2]. Profit Forecast and Valuation - Due to higher-than-expected licensing income, the net profit forecast for 2025 has been raised by 7.5% to 48.07 million yuan [2]. - The 2026 net profit forecast remains unchanged at 320 million yuan [2]. - The target price has been increased by 32.7% to 15 HKD, indicating a potential upside of 30.5% from the current stock price [2].

Core Viewpoint - The company has shown strong financial performance in the first half of 2025, with significant revenue growth driven by licensing income, and is well-positioned for future growth with a robust pipeline of drug candidates [1][2]. Financial Performance - The company reported a revenue of 612 million RMB in H1 2025, representing a 23% increase, primarily from Merck licensing income [1] - Gross profit for the same period was 610 million RMB, also up by 23% [1] - R&D expenses amounted to 230 million RMB, reflecting a 6% increase, while net profit surged by 59% to 330 million RMB [1] - As of June 30, 2025, the company had cash and bank balances of 2.33 billion RMB, an increase of 370 million RMB, mainly due to licensing income [1] Shareholder Returns - The management has prioritized shareholder returns, with a total buyback amount of approximately 150 million HKD over the past two years [2] Pipeline Development - The company has one molecule in NDA stage and another in critical clinical stage, with 6-7 molecules in early clinical phases, indicating a clear and structured pipeline [1] - ABSK021 (CSF-1R) has shown promising clinical results, with a 54% overall response rate (ORR) in a Phase III study, and is expected to contribute to revenue starting in 2026 [2] - ABSK011 (FGFR4) targets a significant unmet need in liver cancer treatment, with ongoing studies showing favorable outcomes [3][4] Clinical Trials and Research - The company has initiated a registration clinical study for ABSK011 in advanced or unresectable HCC patients, which is the only registered clinical trial in China targeting patients after ICI treatment [4] - The company is also advancing other molecules such as ABSK141 (KRAS G12D) and ABSK211 (Pan-KRAS), with IND submissions expected in 2025 and 2026 respectively [5][6] Revenue Projections - Revenue forecasts for FY25-27 are estimated at 610 million, 630 million, and 630 million RMB respectively, with net profits projected at 30 million, 130 million, and 350 million RMB [6]

Investment Rating - The report maintains an "OUTPERFORM" rating for the company with a target price of HKD 17.90, up from a previous target of HKD 13.40 [2][14][32]. Core Insights - The company reported a revenue of RMB 612 million for H1 2025, a 23% year-on-year increase, primarily driven by an upfront payment from Merck of USD 85 million [20][21]. - The gross profit for the same period was RMB 610 million, with net profit reaching RMB 330 million, reflecting a 59% increase year-on-year [20][21]. - The company has a robust cash position of approximately RMB 2.3 billion, which supports its operations and planned R&D investments for the next 2-3 years without the need for external financing [22][23]. Financial Performance - Revenue projections for FY25-27 are revised to RMB 610 million, RMB 630 million, and RMB 630 million respectively, with corresponding net profit estimates of RMB 30 million, RMB 130 million, and RMB 350 million [14][32]. - The company’s revenue growth is projected at 2544% for FY25, followed by 21% for FY26, and 3% for FY27 [17]. Pipeline and Product Development - The company has a well-structured pipeline, including one asset at the NDA stage and several others in various clinical phases, indicating a clear strategy for market expansion [22][24]. - Lead assets ABSK021 and ABSK011 are expected to contribute significantly to revenue within the next 2-3 years, with ABSK021 showing a 54% overall response rate in a Phase III study [24][28]. - ABSK011 has demonstrated promising results in treating liver cancer, with an overall response rate of 44.8% in second-line patients [28][29]. Strategic Direction - The management aims to expand from early-stage small molecules into bispecific antibodies, antibody-drug conjugates (ADCs), and autoimmune diseases, targeting broader market opportunities [22][23]. - The company has repurchased approximately HKD 150 million worth of shares over the past two years, reflecting a commitment to shareholder returns [23]. Valuation - The valuation is based on a risk-adjusted discounted cash flow (DCF) model, with a WACC of 10.0% and a terminal growth rate of 3.5%, leading to a target price of HKD 17.90 per share [14][32].

该行指出，和誉核心双管线进展顺利。6月，匹米替尼在中国的NDA获得受理，公司计划下半年提交美 国的上市申请，预计有望明年在中美获批上市。6月，公司完成了依帕戈替尼在中国的注册临床首例患 者给药，7月，公司在ESMO-GI大会更新了依帕戈替尼联合阿替利珠单抗的II期临床结果，在220mg BID剂量组中ORR≥50%，mPFS≥7个月。此外，潜力早期管线不断涌现。 本文源自：智通财经网 智通财经获悉，和誉-B(02256)再涨超5%，截至发稿，涨3.74%，报11.92港元，成交额2874.91万港元。 消息面上，和誉近日公布中期业绩，上半年收入6.12亿元，同比增长21.5%；归母净利润3.28亿元，同 比增长58.8%。中金表示，公司业绩超预期，主要由于默克行权收入超预期。公司指引全年经营活动消 耗资金在5.7亿元人民币以内，预计公司全年有望维持盈利。 ...

Core Viewpoint - The company, He Yu-B (02256), has shown strong financial performance in its recent interim results, with significant revenue and profit growth, driven by unexpected income from Merck's exercise [1] Financial Performance - The company reported a revenue of 612 million yuan, representing a year-on-year increase of 21.5% [1] - The net profit attributable to the parent company reached 328 million yuan, marking a year-on-year growth of 58.8% [1] - The company has guided that its annual operating cash consumption will remain within 570 million yuan, indicating a potential for sustained profitability throughout the year [1] Product Pipeline Progress - The core dual pipeline of the company is progressing smoothly, with the NDA for Pimiatinib accepted in China in June, and plans to submit a listing application in the U.S. in the second half of the year, with expectations for approvals in both China and the U.S. next year [1] - In June, the company completed the first patient dosing in the registration clinical trial for Ipagufinib in China [1] - In July, the company updated the Phase II clinical results of Ipagufinib combined with Atezolizumab at the ESMO-GI conference, showing an overall response rate (ORR) of ≥50% and a median progression-free survival (mPFS) of ≥7 months in the 220 mg BID dosage group [1] - The company continues to see the emergence of promising early-stage pipelines [1]

消息面上，和誉近日公布中期业绩，上半年收入6.12亿元，同比增长21.5%；归母净利润3.28亿元，同 比增长58.8%。中金表示，公司业绩超预期，主要由于默克行权收入超预期。公司指引全年经营活动消 耗资金在5.7亿元人民币以内，预计公司全年有望维持盈利。 智通财经APP获悉，和誉-B(02256)再涨超5%，截至发稿，涨3.74%，报11.92港元，成交额2874.91万港 元。 该行指出，和誉核心双管线进展顺利。6月，匹米替尼在中国的NDA获得受理，公司计划下半年提交美 国的上市申请，预计有望明年在中美获批上市。6月，公司完成了依帕戈替尼在中国的注册临床首例患 者给药，7月，公司在ESMO-GI大会更新了依帕戈替尼联合阿替利珠单抗的II期临床结果，在220mg BID剂量组中ORR≥50%，mPFS≥7个月。此外，潜力早期管线不断涌现。 ...

Core Viewpoint - The company has raised its 2025 net profit forecast by 7.5% to 48.07 million HKD due to better-than-expected revenue from the licensing agreement with Merck, maintaining its 2026 net profit forecast at 320 million HKD, and has increased the target price by 32.7% to 15 HKD, indicating a potential upside of 30.5% from the current stock price [1] Financial Performance - In the first half of 2025, the company reported revenue of 612 million HKD, a year-on-year increase of 21.5%, and a net profit attributable to shareholders of 328 million HKD, reflecting a 58.8% year-on-year growth, exceeding expectations primarily due to higher-than-expected income from Merck [2][3] Key Developments - The company received an 85 million USD licensing fee from Merck for the global commercialization rights of Pimiatinib, contributing to the reported revenue of 612 million HKD. The company has increased its R&D expenditure by 6% while reducing management expenses by 13%, leading to strong profitability in the first half of 2025 [3] - The company has made significant progress with its core pipelines, with the NDA for Pimiatinib accepted in China and plans to submit a U.S. application in the second half of 2025. The company also initiated the first patient dosing for Ipagotini in a registration clinical trial in China [4] Emerging Pipeline Potential - The company is advancing clinical studies for its oral PD-L1 ABSK043, both as a monotherapy and in combination with other treatments. The FGF2/3 inhibitor ABSK061 has completed its first patient enrollment for achondroplasia and is progressing in a Phase II trial for gastric cancer. Additionally, the new generation brain-penetrable PRMT5-MTA inhibitor ABSK131 has completed its first patient dosing [5]

Core Viewpoint - The company has raised its 2025 net profit forecast by 7.5% to 48.07 million HKD due to better-than-expected revenue from the authorization of He Yu-B (02256), while maintaining the 2026 net profit forecast at 320 million HKD. The target price has been increased by 32.7% to 15 HKD, indicating a potential upside of 30.5% from the current stock price [1]. Group 1 - The company's 1H25 performance exceeded expectations with revenue of 612 million HKD, a year-on-year increase of 21.5%, and a net profit of 328 million HKD, up 58.8% [2]. - The company received 85 million USD from Merck for the global commercialization rights of Pimiatin, contributing to the revenue of 612 million HKD. R&D expenses increased by 6%, while management expenses decreased by 13%, leading to strong profitability [3]. Group 2 - The core pipeline is progressing well, with the NDA for Pimiatin accepted in China and plans to submit a U.S. application in the second half of the year, with potential approvals expected next year in both markets [4]. - The company is advancing early-stage pipelines, including the oral PD-L1 ABSK043 and FGF2/3 inhibitor ABSK061, with ongoing clinical studies and patient enrollments [5].

| 代码 | 简称 | 回购股数 | 回购金额（万 | 回购最高价 | 回购最低价 | 年内累计回购金额 | | --- | --- | --- | --- | --- | --- | --- | | | | （万股） | 港元） | （港元） | （港元） | （万港元） | | 00011 | 恒生银行 | 20.00 | 2271.70 | 114.200 | 113.100 | 6798.11 | | 02488 | 元征科技 | 43.35 | 515.26 | 12.030 | 11.230 | 3486.99 | | 09896 | 名创优品 | 3.24 | 123.01 | 38.000 | 37.820 | 32236.89 | | 02256 | 和誉-B | 8.40 | 92.66 | 11.350 | 10.820 | 7826.50 | | 00345 | VITASOY INT'L | 4.60 | 42.31 | 9.260 | 9.170 | 21942.60 | 注：本文系新闻报道，不构成投资建议，股市有风险，投资需谨慎。 值得关注的是，本次回购123.01万港元的名创优 ...

Summary of Key Points from the Conference Call Company Overview - **Company**: 和誉医药 (He Yu Pharmaceutical) - **Industry**: Pharmaceutical, focusing on oncology and other therapeutic areas Core Insights and Arguments 1. **Clinical Trials and Drug Development**: - TGCT Phase III and IV clinical data show best-in-class efficacy with excellent ORR and CP, applications submitted to NMPA and FDA [2][3] - FGFR4 inhibitor for liver cancer shows ORR of 44.8%, PFS of 5.5 months, and response duration of 7.4 months; registration trial initiated [2][3] - Opdivo combined with Roche's atezolizumab shows ORR of 50% in first-line HCC patients and 52.8% in second-line patients, providing new treatment options [2][5] - ABSK043 oral PD-L1 inhibitor shows good efficacy in non-small cell lung cancer (NSCLC) and is undergoing combination studies [2][5] 2. **Financial Performance**: - Total revenue for H1 2025 reached 657 million RMB, with a profit of 328 million RMB, indicating strong financial health [2][6] - Stock buyback plan executed with approximately 75 million HKD, reflecting confidence in company value [2][6] 3. **Strategic Collaborations**: - Collaboration with Merck for chronic hepatitis B (HBV) development, discussing Phase III study design to meet market needs [4][16] - Focus on combination therapies, including oral PD-L1 inhibitors with chemotherapy and targeted therapies in gastric and NSCLC [4][19] 4. **Research and Development Focus**: - Emphasis on early-stage R&D in oncology, with plans to expand into autoimmune diseases and cardiovascular conditions [8][9] - Multiple early-stage projects, including KRAS-related therapies and new small molecules, showing promising results [27][29] 5. **Commercialization Strategy**: - 2025 marks a key transition to a global commercialization platform, with flagship product Pimicardin partnered with Merck for global marketing [30][32] - Plans for NDA submissions to FDA and EMA, aiming for synchronized global launches [16][30] 6. **Market Opportunities**: - Significant potential in the NSCLC market, with 40%-60% of patients carrying EGFR or KRAS mutations, targeting these populations with ongoing studies [24][39] - The company believes its products are undervalued in the market, with expectations for increased valuation as commercialization begins [43] Other Important but Possibly Overlooked Content 1. **Regulatory Approvals**: - Two products received breakthrough therapy designation, enhancing their development prospects [13] - Ongoing discussions with health authorities for optimal treatment combinations in liver cancer [37] 2. **Clinical Trial Design**: - Emphasis on dual endpoints (PFS and OS) for first-line treatments, ensuring comprehensive evaluation of efficacy [40] 3. **Stock Market Actions**: - Continuous stock buybacks to signal confidence in company value and improve shareholder returns [31][43] 4. **Future Plans**: - Focus on maximizing product value through strategic resource allocation and partnerships, particularly in BD (business development) [33][35] 5. **Challenges and Considerations**: - Addressing challenges in PK (pharmacokinetics) for KRAS G12D projects while maintaining cost-effectiveness in production [39][40] This summary encapsulates the key points discussed in the conference call, highlighting the company's strategic direction, clinical advancements, financial performance, and market positioning.