Summary of Key Points Core Viewpoint - Multiple companies conducted share buybacks on July 17, 2025, with notable amounts and quantities involved, indicating a trend of companies returning capital to shareholders [1]. Group 1: Buyback Details - The largest buyback was executed by Green Bamboo Bio-B (02480), with a total of 316,600 shares repurchased for an amount of 6.8407 million [2]. - China Eastern Airlines (00670) repurchased 2.2 million shares for 6.4249 million, representing 1.825% of its total share capital [2]. - CIMC (02039) bought back 656,200 shares for 4.5029 million, accounting for 0.240% of its total share capital [2]. Group 2: Other Notable Buybacks - Mengniu Dairy (02319) repurchased 200,000 shares for 3.3682 million, which is 0.116% of its total share capital [2]. - China Xuyang Group (01907) bought back 1.04 million shares for 2.6279 million, representing 0.971% of its total share capital [2]. - Miniso (09896) repurchased 57,400 shares for 1.9974 million, which is 0.210% of its total share capital [2]. Group 3: Additional Companies - Other companies such as IGG (00799) and HYPEBEAST (00150) also participated in buybacks, with IGG repurchasing 246,000 shares for 1.0630 million and HYPEBEAST repurchasing 3,001,600 shares for 469,300 [2]. - The buyback activities reflect a broader strategy among these companies to enhance shareholder value and confidence in their financial health [1].

Core Insights - The market for shingles vaccines in China has experienced rapid growth due to an aging population and increased public health awareness, with the market size expected to reach 5.6 billion yuan by 2024 after a recovery from a significant drop in 2021 [1][13] - The incidence of shingles is notably high among individuals aged 50 and above, driving sustained demand for vaccines [1][13] - The public's awareness of shingles and its prevention is gradually increasing, further propelling the market's growth [1][13] Industry Overview - Shingles vaccines are designed to prevent shingles, a disease caused by the reactivation of the Varicella-Zoster Virus, which initially causes chickenpox [2][4] - The industry chain includes upstream raw material suppliers, midstream vaccine developers and manufacturers, and downstream logistics and healthcare providers [4] Development History - The shingles vaccine industry in China has evolved from non-existence to local innovation, with the first imported vaccine, GSK's Shingrix, approved in 2019 [6][9] - The launch of the first domestic live attenuated shingles vaccine by Baike Biological in January 2023 marked a significant milestone, expanding the eligible age group for vaccination [6][9] - The market is now characterized by competition between imported and domestic vaccines, with expectations for a surge in domestic vaccine approvals in the coming years [6][9] Market Dynamics - The number of vaccine approvals has increased significantly, with Baike Biological's vaccine receiving 22 approvals in the first three quarters of 2023, indicating strong market performance [9] - The domestic vaccine market is expected to grow rapidly, driven by aging demographics and improved public health policies [9][11] Key Companies - Baike Biological has established itself as a leader in the shingles vaccine market, with a revenue of 883 million yuan in 2023, although it is projected to decline to 251 million yuan in 2024 [17] - Wantai Biological, another key player, reported a revenue of 5.511 billion yuan in 2023, down 50.73% from the previous year, and is expected to generate 2.245 billion yuan in 2024 [19] Future Trends - Domestic vaccines are anticipated to dominate the market due to their competitive pricing and alignment with local needs [21] - The improvement of health insurance policies is expected to enhance vaccine accessibility and increase public willingness to get vaccinated [22] - The development of multivalent and combination vaccines is becoming a significant trend, aiming to provide broader protection and improve vaccination efficiency [23]

Group 1: Company Performance - Baike Bio reported a revenue of approximately 1.229 billion RMB for 2024, a year-on-year decline of 32.64% [1] - The net profit attributable to shareholders was around 232 million RMB, down 53.67% year-on-year [1] - The decline in performance is primarily attributed to reduced sales of the shingles vaccine [1] Group 2: Green Bamboo Bio's Situation - Green Bamboo Bio's stock price fell by 9.09% on May 2, leading to significant sell-offs, with a trading volume of 1.8036 million shares, the highest since 2024 [2] - The company has experienced a drastic decline in liquidity, with 10 months in the past 17 months having a monthly trading volume of less than 200,000 shares [2] - Green Bamboo Bio's market capitalization is currently around 4.1 billion HKD, below the 7 billion HKD threshold required for inclusion in the Hang Seng Index [4] Group 3: Financials of Green Bamboo Bio - Green Bamboo Bio reported a net loss of 168 million RMB for the year, a reduction of 32.5% compared to the previous year's loss of 249 million RMB [4] - The company has not yet commercialized any products, with total revenue remaining at zero [4] - Research and development expenses decreased by 21.7% to 135 million RMB [4] Group 4: Product Development - Green Bamboo Bio's core product, the recombinant shingles vaccine LZ901, has completed Phase III clinical enrollment and submitted a Biologics License Application (BLA) [6] - LZ901 is expected to be the first shingles vaccine with a tetrameric molecular structure, targeting adults aged 50 and above [6] - The vaccine is positioned to compete with GSK's Shingrix, which has seen significant sales growth, reaching 3.446 billion GBP in 2023 [8] Group 5: Market Dynamics - The domestic vaccine industry is facing structural adjustment pressures, with a decline in consumer willingness to receive vaccinations and a significant drop in demand for self-paid vaccines [10] - The competition in the vaccine market is intense, with over 10 manufacturers competing in areas like rabies and influenza vaccines [10] - The market for shingles vaccines is currently less competitive, with only Baike Bio's Ganwei and GSK's Shingrix available, providing an opportunity for LZ901 if it commercializes as expected [10] Group 6: Challenges Ahead - Despite the potential of LZ901, the company may struggle to significantly improve its financial structure and fundamentals due to market education challenges and profit margin pressures [11] - The current vaccination rate for shingles in China is only 0.1%, significantly lower than in developed countries, indicating a need for market education [10]

Summary of Key Points Core Viewpoint - On May 2, 37 Hong Kong-listed companies conducted share buybacks, totaling 23.26 million shares and an aggregate amount of HKD 179 million [1]. Group 1: Buyback Details - The company with the highest buyback amount on May 2 was Green Bamboo Bio-B, which repurchased 1.76 million shares for HKD 39.71 million, with a maximum price of HKD 23.00 and a minimum price of HKD 21.95 [1][2]. - China Hongqiao repurchased 2.79 million shares for HKD 39.39 million, with a maximum price of HKD 14.20 and a minimum price of HKD 14.02, bringing its total buyback amount for the year to HKD 20.74 billion [1][2]. - Swire Pacific A repurchased 0.33 million shares for HKD 22.59 million, with a maximum price of HKD 68.95 and a minimum price of HKD 66.95, totaling HKD 15.26 billion for the year [1][2]. Group 2: Notable Buybacks - AIA Group conducted multiple buybacks throughout the year, with a total buyback amount of HKD 7.69 billion, including a buyback of HKD 16.07 million on May 2 [2]. - The company with the highest number of shares repurchased on May 2 was Ying Group, which bought back 7 million shares [1][2]. - Other notable companies in terms of buyback volume included China Hongqiao and Four Seasons Pharmaceutical, with repurchases of 2.79 million shares and 2.68 million shares, respectively [1][2].

证券研究报告 | 2025年04月21日 绿竹生物-B（02480.HK） 优于大市 核心产品重组带状疱疹疫苗 LZ901 上市申请获受理 全年亏损收窄，在研管线有序推进。2024 年公司经调整亏损 1.68 亿元，上 年同期为亏损 2.49 亿元，全年亏损收窄。2024 全年研发开支为 1.35 亿元（同 比-21.7%），主要由于随着 LZ901 国内 Ph3 临床进展，相关折旧摊销减少， 同时以股份付款的员工成本减少等原因；行政开支为 0.87 亿元（同比 -25.5%），主要由于以股份付款的员工成本减少。 LZ901（重组带状疱疹疫苗）：于 2023 年 9 月在中国启动 LZ901 的多中心、 随机、双盲、安慰剂对照 Ph3 临床研究，2024 年 1 月在江苏、山东、湖北 及山西四省完成共计 2.6 万名 40 岁及以上健康受试者入组，并于 2024H2 获得了临床试验中期分析结果，目前 LZ901 在中国的上市申请已获得国家药 监局受理，预计 2026H1 实现产品商业化。 K3（阿达木单抗生物类似药）：公司计划根据市场情况及公司可动用资源， 进一步评估在中国启动 K3 的 Ph3 临床试验的适 ...

Investment Rating - The report assigns a "Buy-A" investment rating with a 6-month target price of HKD 36.38 [4][6]. Core Insights - The company has shown a continuous narrowing of losses, with a reported loss of RMB 170 million for the year 2024. The core product, the LZ901 shingles vaccine, has made significant progress, completing the enrollment of 26,000 healthy participants in its Phase III clinical trial by January 2024. The mid-term analysis results of the trial are expected in the second half of 2024, and the BLA for LZ901 has been accepted by the NMPA, indicating promising commercialization prospects [1][2][4]. Summary by Sections Financial Performance - The company reported a loss of RMB 170 million for 2024, which is a reduction from previous losses. Revenue projections for 2025 to 2027 are estimated at RMB 0.02 billion, RMB 10.51 billion, and RMB 17.95 billion respectively, with net profits expected to be RMB -300 million, RMB 1.42 billion, and RMB 5.08 billion [4][9]. Product Pipeline - The company has a diverse product pipeline, including three candidates in clinical stages and six in preclinical stages. The core product LZ901 is complemented by a biosimilar of adalimumab (K3) expected to enter Phase III trials in 2026, and other candidates targeting various diseases [3][4]. Market Positioning - LZ901 is positioned competitively with a unique tetrameric molecular structure that enhances immunogenicity, leading to higher neutralizing antibody titers compared to Shingrix. The expected retail price for LZ901 is between RMB 500 to 800 per dose, significantly lower than Shingrix, which is priced at approximately RMB 3,200 for two doses [2][4]. Valuation Model - The report utilizes a DCF valuation model, projecting a target price of HKD 36.38 based on expected revenue growth and profitability improvements over the next few years [4][11].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 21,387,000, representing a 6.5% increase from RMB 20,085,000 in 2023[9] - The net loss before tax decreased by 32.5% to RMB 168,235,000 in 2024 from RMB 249,350,000 in 2023[9] - Basic and diluted loss per share improved by 33.6% to RMB 0.83 in 2024 from RMB 1.25 in 2023[9] - The company's other income increased by approximately 6.5% from RMB 20.1 million in 2023 to RMB 21.4 million in 2024, primarily due to government subsidies related to R&D activities amounting to RMB 6.4 million[40] - The net other income decreased by approximately 34.9% from RMB 18.2 million in 2023 to RMB 11.8 million in 2024, mainly due to a reduction in foreign exchange gains of about RMB 5.7 million[43] - Administrative expenses were reduced by 25.5% to RMB 64,795,000 in 2024 from RMB 87,011,000 in 2023[9] - R&D expenses decreased by approximately 21.7% from RMB 172.7 million in 2023 to RMB 135.1 million in 2024, mainly due to reduced depreciation and amortization related to LZ901[46] - The company reported a pre-tax loss of RMB 168.2 million in 2024, a decrease of approximately 32.5% from RMB 249.4 million in 2023[38] Clinical Development and Product Pipeline - The company completed the enrollment of 26,000 healthy participants in the Phase III clinical trial for its core product, LZ901, in January 2024[14] - LZ901's Biologics License Application (BLA) has been accepted by the National Medical Products Administration in China, with commercialization efforts ongoing[14] - The company initiated two new clinical-stage vaccine products targeting HSV-1 and HSV-2, addressing unmet medical needs globally[15] - The company has six clinical-stage products in its pipeline, including LZ901, and additional preclinical products under development[12] - The core product LZ901 is expected to progress in its listing application in China and clinical trials in the US, with commercialization anticipated in the first half of 2026[18][24] - K3, a biosimilar to Humira®, is under evaluation for a Phase III trial in China, expected to start as early as the first half of 2026[26] - K193, a bispecific antibody for treating B-cell leukemia and lymphoma, is in Phase I trials, with completion expected in the second half of 2025[27] - The company plans to advance more products into clinical research stages in 2025, aiming to meet growing market demand[18] Assets and Liabilities - Non-current assets increased to RMB 577,587,000 in 2024 from RMB 545,722,000 in 2023, reflecting a growth of 5.9%[11] - Current assets decreased to RMB 472,876,000 in 2024 from RMB 620,972,000 in 2023, a decline of 23.8%[11] - The group's property, plant, and equipment increased by approximately 19.2% from about RMB 383.9 million as of December 31, 2023, to about RMB 457.6 million as of December 31, 2024, mainly due to the construction of a new R&D and production base in Beijing[52] - The group's prepaid expenses, deposits, and other receivables decreased by approximately 58.8% from about RMB 62.3 million as of December 31, 2023, to about RMB 25.6 million as of December 31, 2024, primarily due to a reduction in recoverable VAT[53] - The group's bank balance decreased by approximately RMB 124.9 million from about RMB 265.0 million as of December 31, 2023, to about RMB 140.1 million as of December 31, 2024, mainly due to share buybacks and capital expenditures[54] - The group's total bank borrowings increased to approximately RMB 54.9 million as of December 31, 2024, compared to about RMB 7.0 million as of December 31, 2023[54] - The group's debt-to-asset ratio increased to 18.7% as of December 31, 2024, from 12.5% as of December 31, 2023[59] - The group's net current assets decreased from about RMB 524.7 million as of December 31, 2023, to about RMB 374.0 million as of December 31, 2024[60] Corporate Governance and Management - The company has established a comprehensive internal product discovery capability, with a research and development team consisting of 17 personnel as of December 31, 2024[34] - The company is constructing a new R&D and production facility in Beijing with a total area of approximately 45,072.87 square meters[36] - The company’s production team includes 43 personnel, while the quality control team consists of 44 personnel, all trained in regulatory and quality control standards[36] - The company has a strong emphasis on quality control and assurance in its vaccine production processes[87] - The company has a strategic focus on expanding its product pipeline and enhancing clinical trial management[87] - The company’s board includes members with extensive experience in drug development and biopharmaceutical research[89] - The company is committed to providing independent oversight and strategic advice through its independent non-executive directors[92] Shareholder Information - The company did not declare any final dividends for the reporting period[147] - The company has no distributable reserves as of December 31, 2024[157] - The company may face challenges in managing its growth and business expansion[146] - The total issued share capital of the company as of December 31, 2024, includes 202,449,032 H-shares, which encompasses 1,460,000 shares held in treasury[173] - The total percentage of shareholding for Mr. Kong, Ms. Zhang, and Mr. Ma combined is significant, indicating a concentrated ownership structure within the company[170] Risks and Challenges - The group faced significant risks related to the success of its clinical-stage and preclinical-stage products, which may not receive regulatory approval or may experience delays[131] - The group may encounter difficulties in recruiting clinical trial participants, potentially delaying clinical development activities[131] - The group generated a net loss and negative operating cash flow during the reporting period, with expectations of continued losses[140] - The group may require additional financing for research and operational expansion, which may not be secured[140] - The group is exposed to supply chain risks, including price increases or supply disruptions that could adversely affect its business[136] Compliance and Regulations - The group has complied with all relevant laws and regulations without any serious violations during the reporting period[145] - The pharmaceutical industry in China is highly regulated, and changes in regulations may affect the approval and commercialization of the company's research products[146]

Core Insights - The article highlights the transformative potential of Chinese biopharmaceutical companies in the vaccine industry, driven by innovation and global expansion [1][11] - Green Bamboo Biotech's LZ901 shingles vaccine is positioned to disrupt the market with its unique design and expected approval in the first half of next year [2][6] Group 1: LZ901 Vaccine Development - LZ901 is set to launch next year, featuring a groundbreaking design that enhances immune response efficiency through precise antigen targeting [1][2] - The vaccine is undergoing head-to-head trials against the only currently approved recombinant shingles vaccine, showcasing its competitive edge [1][2] - The commercial production system is ready, with the Zhuhai base in trial operation, aiming for rapid market penetration post-launch [2] Group 2: Market Potential and Demand - The shingles vaccine consistently ranks among the top-selling vaccines globally, indicating significant market demand and potential [2][6] - The global market for herpes simplex virus (HSV) vaccines is vast, with approximately 3.8 billion people under 50 infected with HSV-1 and 520 million with HSV-2, highlighting unmet medical needs [7][8] Group 3: Broader Innovation Pipeline - Green Bamboo Biotech is expanding its pipeline with innovative vaccines targeting HSV-1 and HSV-2, currently in preclinical research [7] - The company is also advancing therapeutic antibody projects, including a recombinant anti-TNF-α monoclonal antibody and dual-target antibodies for treating blood cancers [8] - The strategic focus on both preventive and therapeutic solutions positions the company for significant growth in the coming years [11]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 21,387,000, an increase of 6.5% compared to RMB 20,085,000 in 2023[4] - The net loss before tax for the year was RMB 168,235,000, a reduction of 32.5% from RMB 249,350,000 in the previous year[4] - The company's total equity as of December 31, 2024, was RMB 853,591,000, a decrease from RMB 1,020,628,000 in 2023[10] - The company's cash and cash equivalents decreased to RMB 140,126,000 from RMB 264,982,000 in the previous year[9] - The company's other income increased by approximately 6.5% from RMB 20.1 million for the year ended December 31, 2023, to approximately RMB 21.4 million for the year ended December 31, 2024, mainly due to government subsidies related to R&D activities amounting to RMB 6.4 million[73] - The company's administrative expenses decreased by approximately 25.5% from RMB 87.0 million for the year ended December 31, 2023, to approximately RMB 64.8 million for the year ended December 31, 2024[79] Research and Development - Research and development expenses decreased by 21.7% to RMB 135,134,000 from RMB 172,685,000 in 2023[4] - The company has initiated the development of two new recombinant vaccines targeting HSV-1 and HSV-2, increasing its pipeline to six preclinical products as of December 31, 2024[5] - The company completed the enrollment of 26,000 healthy participants aged 40 and above for the Phase III clinical trial of LZ901 in January 2024[5] - The LZ901 vaccine, a recombinant shingles vaccine, is the first globally with a tetravalent molecular structure, showing high immunogenicity and safety in clinical trials[60] - A Phase III clinical trial for LZ901 commenced in September 2023, aiming to enroll 26,000 healthy participants aged 40 and above by January 2024[61] - The company is developing two new vaccines targeting HSV-1 and HSV-2, currently in preclinical stages, addressing unmet medical needs globally[64] - The company has six clinical-stage products in its pipeline, including the core product LZ901, and six preclinical-stage products as of December 31, 2024[57] Assets and Liabilities - Total assets less current liabilities as of December 31, 2024, were RMB 951,606,000, down from RMB 1,070,382,000 in 2023[9] - The total value of property, plant, and equipment is RMB 517,786,000, an increase from RMB 422,831,000 as of December 31, 2023, representing a growth of approximately 22.4%[35] - The total amount of prepaid expenses and other receivables decreased to RMB 25,627,000 as of December 31, 2024, from RMB 62,267,000 as of December 31, 2023, a decline of approximately 58.8%[42] - The company's bank borrowings increased significantly from approximately RMB 7.0 million as of December 31, 2023, to approximately RMB 54.9 million as of December 31, 2024[88] - The debt-to-asset ratio rose to 18.7% as of December 31, 2024, compared to 12.5% as of December 31, 2023[92] Clinical Trials and Regulatory Approvals - The Biologics License Application (BLA) for LZ901 was submitted to the National Medical Products Administration in January 2025 and accepted in February 2025[5] - The company plans to submit a Biologics License Application (BLA) for LZ901 in January 2025, with commercialization expected in mid-2026 in China[61] - K3, a biosimilar to Humira®, is in development for autoimmune diseases, with a Phase I trial completed in December 2019, and a Phase III trial anticipated to start in mid-2026[62] - K193, a bispecific antibody for treating B-cell leukemia and lymphoma, is in Phase I trials, with completion expected in the second half of 2025[63] Employee and Corporate Governance - The group employed 164 full-time employees as of December 31, 2024, with a competitive salary and bonus structure[104] - The company's board of directors includes key figures such as Mr. Kong Jian and Ms. Zhang Yanping, who are also major shareholders[126] - The company has established an innovative precision protein engineering platform, enabling the development of human vaccines, monoclonal antibodies, and bispecific antibodies[58] - The company emphasizes compliance with the regulations set forth by the National Medical Products Administration of China[123] Financial Strategy and Future Outlook - The company has a total bank borrowing of RMB 54,914,000 as of December 31, 2024, compared to RMB 7,000,000 in 2023, indicating a significant increase[51] - The company anticipates that the net proceeds from the global offering will be fully utilized by the end of 2027[103] - The company does not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[116] - The company is actively expanding its market presence and exploring potential mergers and acquisitions[123]

Investment Strategy and Policies - The company prioritizes redeemable wealth management products in its investment strategy to maintain capital preservation and liquidity[3] - The company implements treasury policies, internal control policies, and rules for wealth management product investments to ensure sufficient working capital for business operations, R&D, and capital needs[3] - Investment decisions are made on a case-by-case basis after considering factors such as investment duration and expected returns[3] China Construction Bank Structured Product - The company holds a China Construction Bank structured product with an original principal amount of RMB 111,826 thousand and a fair value of RMB 113,440 thousand as of December 31, 2023, representing 9.72% of the group's total assets[2] - The China Construction Bank product generated an unrealized gain of RMB 1,614 thousand for the year ended December 31, 2023[2] - The China Construction Bank product is a low-risk, non-principal-guaranteed floating income fixed-income product without regular interest income distribution[2]