Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 25.00 [6][8][17] Core Insights - The company's revenue for 2024 is expected to increase by 21.3% to RMB 12.26 billion, with a net profit growth of 33.4%, exceeding expectations [1][6] - The oncology drug segment is projected to contribute 61.2% of the total product sales revenue in 2024, driven by strong performance from the core product Amelot, which is expected to see sales growth of 19.9% [2] - The company has established a partnership with Merck for the development and commercialization of a GLP-1 receptor agonist, which is expected to enhance its capabilities in the metabolic field [4] - The company is currently developing 40 innovative drugs, with several in late-stage clinical trials, indicating a promising pipeline for future growth [5] Financial Summary - The company's revenue is projected to grow from RMB 10.10 billion in 2023 to RMB 12.26 billion in 2024, with a compound annual growth rate (CAGR) of 21.3% [7][14] - Shareholder net profit is expected to rise from RMB 3.28 billion in 2023 to RMB 4.37 billion in 2024, reflecting a growth rate of 33.4% [7][14] - The gross margin is anticipated to improve by 1.2 percentage points, while sales and administrative expenses as a percentage of product sales revenue are expected to decrease [1][7] Product and Market Developments - The oncology drug business is expected to grow from approximately RMB 6.55 billion in 2024 to RMB 10.97 billion by 2027, with a CAGR of 18.8% [2] - The anti-infection drug revenue is projected to increase by 15.0% to RMB 1.46 billion in 2024, primarily driven by the strong sales of the hepatitis drug Hengmu [3] - The company has received multiple recommendations for its products in clinical guidelines, which is expected to support future sales growth [3]

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [3][7]. Core Insights - The company achieved a revenue of 12.261 billion CNY in 2024, representing a year-on-year growth of 21.3%, and a profit of 4.372 billion CNY, up 33.4% year-on-year [1][2]. - The sales revenue from innovative drugs and collaborative products reached 9.477 billion CNY in 2024, a 38.1% increase, accounting for 77.3% of total revenue [7]. - The company has shown strong cost control, with a gross margin of 91% in 2024, an increase of 1.2 percentage points year-on-year [7]. - The company is actively pursuing global collaborations, enhancing its competitive edge, with significant partnerships established in 2024 [7]. Financial Data and Valuation - The company’s projected revenues for 2025-2027 are 13.714 billion CNY, 15.395 billion CNY, and 17.378 billion CNY, with respective year-on-year growth rates of 12%, 12%, and 13% [2][9]. - The projected net profits for 2025-2027 are 4.588 billion CNY, 5.152 billion CNY, and 5.930 billion CNY, with growth rates of 5%, 12%, and 15% respectively [7][9]. - The company’s PE ratios for 2025-2027 are projected to be 24.6, 21.9, and 19.1 [9]. Shareholder Information - The total market capitalization of the company is 120.5 billion HKD, with a total share capital of 5,936 million shares [3]. - The major shareholder, Sunrise Investment Advisors Limited, holds a 65.7% stake in the company [3]. Performance Metrics - The company’s return on equity (ROE) is reported at 15.2% for 2024, with a projected increase to 15.4% by 2027 [9]. - The asset-liability ratio is notably low at 9.4% in 2024, indicating strong financial stability [9].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 23.82 [8][9]. Core Insights - The company reported a revenue of RMB 12.261 billion for 2024, representing a year-on-year growth of 21.3%, and a net profit of RMB 4.372 billion, up 33.4% year-on-year. The revenue from innovative drugs reached RMB 9.477 billion, growing 38.1% year-on-year, and accounting for 74% of total revenue, which aligns with expectations [1][2]. - The growth in revenue is driven by strong performance in oncology and anti-infection segments, with revenues of RMB 8.122 billion and RMB 1.464 billion respectively, reflecting increases of 31.7% and 15.4% year-on-year. The gross margin improved to 91%, while the R&D expense ratio increased to 22%, indicating ongoing investment in innovation [2][3]. - The company has seven innovative drugs and nine indications included in the national medical insurance catalog as of 2024, with over 40 new molecular entities in more than 60 clinical trials. The company completed three license-in agreements in 2024, generating R&D expenses of RMB 247 million [3][4]. Summary by Sections Financial Performance - For 2024, the company achieved revenues of RMB 12.261 billion, with a year-on-year growth of 21.35%. The net profit for the same year was RMB 4.372 billion, reflecting a growth of 33.39% [7][19]. - The projected net profits for 2025 and 2026 are RMB 4.400 billion and RMB 4.179 billion respectively, with an expected EPS of RMB 0.74 for 2025 [5][19]. Research and Development - The company has a robust pipeline with 40 new molecular entities and over 60 clinical trials ongoing. Key drugs like Amatinib are expected to generate significant sales, projected to reach RMB 6 billion by 2025 [4][5]. - The company is actively expanding into autoimmune diseases and has multiple assets in development for skin diseases and kidney diseases [4][5]. Valuation - The company is valued at HKD 1,414 billion, with the innovative drug segment valued at HKD 1,378 billion and the generic drug segment at HKD 36 billion. The target price reflects an increase from the previous valuation of HKD 22.28 [5][9].

Financial Performance - The company reported revenue of approximately RMB 12.261 billion for the year ending December 31, 2024, representing a year-on-year growth of approximately 21.3%[4] - Profit for the same period was approximately RMB 4.372 billion, an increase of about 33.4% compared to the previous year[15] - Basic earnings per share were approximately RMB 0.74, an increase of approximately 33.3% compared to the previous year[4] - Revenue for the year ended December 31, 2024, reached RMB 12,260,814 thousand, a 21.4% increase from RMB 10,103,806 thousand in 2023[77] - Gross profit for 2024 was RMB 11,155,406 thousand, up from RMB 9,072,943 thousand in 2023, reflecting a significant growth in profitability[77] - Net profit for the year was RMB 4,371,825 thousand, representing a 33.4% increase compared to RMB 3,277,503 thousand in 2023[79] - The group's profit before tax rose to RMB 3,327,665,000 in 2024, compared to RMB 2,680,840,000 in 2023, reflecting a growth of 24.2%[90] Revenue Breakdown - Sales revenue from innovative drugs and collaborative products reached approximately RMB 9.477 billion, an increase of approximately 38.1% year-on-year, accounting for about 77.3% of total revenue[4] - Revenue from the oncology segment was approximately RMB 8.122 billion, making up about 66.2% of total revenue[18] - The anti-infection segment generated revenue of approximately RMB 1.464 billion, contributing about 11.9% to total revenue[18] - The central nervous system segment reported revenue of approximately RMB 1.379 billion, representing about 11.3% of total revenue[18] - The metabolic and other diseases segment achieved revenue of approximately RMB 1.296 billion, accounting for about 10.6% of total revenue[18] Research and Development - Research and development expenses amounted to approximately RMB 2.702 billion, up approximately 28.8% year-on-year, representing about 22.0% of total revenue[4] - Over 60 clinical trials for innovative drugs are currently ongoing, with 8 new candidates entering clinical research stages during the reporting period[37] - The company has published multiple research findings on ShengLuoLai® in prestigious journals and conferences, focusing on its mechanism of action and clinical studies[33] Product Approvals and Developments - The company received clinical trial approval for the innovative drug HS-10501, intended for the treatment of type 2 diabetes and adult obesity[6] - The innovative drug Amelot® received its third NDA acceptance from NMPA for use in NSCLC patients with specific mutations[9] - The innovative drug Amelotin® has been approved for three indications and was successfully included in the 2024 National Medical Insurance Directory[21] - The product XinYue® (Inalizumab injection) received NMPA approval for treating adult patients with AQP4 antibody-positive NMOSD on March 14, 2022, and was included in the national medical insurance catalog in January 2023[25] - HS-20093, a B7-H3 targeted ADC, has entered Phase III clinical trials for small cell lung cancer and has shown strong anti-tumor activity in preliminary studies[40][41] Licensing Agreements - A licensing agreement was established with Zhuhai Pumis Biotechnology Co., granting the company exclusive rights to develop and commercialize HS-20117 globally[6] - The company entered into a global exclusive licensing agreement with Merck Sharp & Dohme LLC for the development of the investigational GLP-1 receptor agonist HS-10535[13] - The company has entered into a licensing agreement with Promis to develop and commercialize the bispecific antibody HS-20117 globally, currently in Phase I clinical trials[49] - The company has secured a licensing agreement with LUPON Pharmaceuticals for HS-10561, a BTK inhibitor, with clinical trials for chronic spontaneous urticaria expected to commence in February 2025[51] Corporate Governance and Sustainability - The company maintained an MSCI ESG rating of AA and was included in the S&P Global Sustainable Development Yearbook 2025, ranking first in the Chinese pharmaceutical industry[13] - The company plans to continue reviewing and enhancing its corporate governance practices to ensure compliance with the corporate governance code[110] - The audit committee, consisting of three independent non-executive directors, reviewed the audited performance for the year ending December 31, 2024[112] Cash Flow and Financial Position - The group reported a net cash inflow from operating activities of RMB 3.862 billion for the year ending December 31, 2024[62] - As of December 31, 2024, the group had cash and bank deposits totaling RMB 22.622 billion, an increase from RMB 22.435 billion as of December 31, 2023[63] - The group's asset-liability ratio was approximately 9.4% as of December 31, 2024, a decrease from 21.9% as of December 31, 2023[63] - Total assets less current liabilities increased to RMB 28,962,631 thousand in 2024 from RMB 26,176,230 thousand in 2023, indicating a stronger financial position[81] Dividends and Shareholder Returns - The declared final dividend for 2023 was RMB 768,760,000, significantly higher than RMB 268,852,000 for 2022, representing a 186.5% increase[96] - The company announced a final dividend of HKD 0.1353 per share for the year ending December 31, 2024, down from HKD 0.1422 in 2023[115] - The total dividend for the year 2024, including the interim dividend, amounts to HKD 0.3363 per share[115]

Summary of Hansoh Pharmaceutical Conference Call Company Overview - **Company**: Hansoh Pharmaceutical - **Industry**: Pharmaceutical Key Points and Arguments - **Innovation Transformation**: Hansoh Pharmaceutical has significantly transformed into an innovative company, with innovative drug revenue expected to exceed 80% by 2025. Currently, 8 innovative drugs are listed and included in the medical insurance catalog, providing strong growth momentum for the company's performance [2][3] - **Ameitini Drug Performance**: Ameitini, a third-generation EGFR-TKI, has advantages in efficacy and safety, with multiple indications approved. It is expected to receive approval for postoperative adjuvant therapy in the first half of 2024, with peak sales projected to exceed 6.5 billion RMB [2][10] - **International Market Expansion**: The company actively expands overseas markets through licensing agreements, such as granting the oral GLP-1R agonist to Merck and ADCs B7H3 and B7H4 to GSK, generating substantial upfront payments and enhancing international visibility [2][5] - **Financial Position**: Hansoh Pharmaceutical has a strong cash reserve exceeding 20 billion RMB, supporting ongoing licensing transactions and the expansion of its innovative pipeline, as well as steady progress in early-stage R&D projects [2][6] - **Clinical Trials and Pipeline Progress**: The company has multiple ADC projects progressing well, with B7-H3 ADC entering Phase III trials for non-small cell lung cancer and BHH4 ADC starting Phase III trials for ovarian cancer [2][4] - **Revenue Projections**: Total revenue for 2024 is expected to be around 12 billion RMB, with innovative drug revenue exceeding 8 billion RMB. Peak sales for listed innovative drugs are anticipated to reach 15 billion RMB, while pipeline drugs could achieve peak sales of 15-16 billion RMB [2][18] - **Profit and Valuation Outlook**: Projected profit for 2025 is over 4.1 billion RMB, with a potential market capitalization of 130 billion RMB if valued at a 30x P/E ratio, indicating potential for historical highs [2][8][19] Additional Important Insights - **Sales Growth**: The company's internal operating revenue grew nearly 14% year-on-year in the first half of 2024, with innovative drug revenue accounting for 77% of total revenue [3] - **Market Dynamics**: The third-generation TKI market is expected to reach 15 billion RMB in 2024, with Ameitini's market share expected to grow significantly due to its competitive advantages [10][11] - **Clinical Development**: The company has several promising innovative drug pipelines in preclinical stages, including an oral GLP-1R agonist and dual-target ADCs, which are expected to lead to further overseas transactions [9] - **Upcoming Events**: Hansoh Pharmaceutical plans to hold a performance exchange and conference call next week, with expectations to meet or exceed the revenue guidance of 12 billion RMB for 2024 [21]

Core Insights - The study published in the journal "Kidney Medicine" demonstrates the effectiveness of the peptide, Pemolizumab, in treating EPO-induced Pure Red Cell Aplasia (PRCA) patients, indicating a promising innovative solution for this rare but serious complication [1] Group 1: Research Findings - The research led by Professor Fan Qiuling from Shanghai Jiao Tong University School of Medicine shows that Pemolizumab can effectively treat EPO-induced PRCA in a non-dialysis Chinese patient with type 1 diabetes nephropathy [1] - The study confirmed Pemolizumab's potential in treating EPO-induced PRCA, as evidenced by significant improvements in hemoglobin levels and anemia symptoms without notable adverse reactions [1] Group 2: Clinical Implications - The findings provide a new safe, effective, and convenient treatment option for EPO-induced PRCA, addressing a critical need in clinical practice [1] - The patient's clinical course, reticulocyte count reduction, and bone marrow biopsy results were consistent with EPO treatment-induced PRCA, reinforcing the study's conclusions [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3] Core Views - The company has successfully completed several significant license-out transactions in the oral small molecule GLP-1 space, including a deal with Merck that involves an upfront payment of $112 million and potential milestone payments totaling up to $1.9 billion [3][14] - The company's innovative pipeline is robust, and its global expansion is progressing smoothly, leading to a maintained "Buy" rating [4] Financial Forecasts - The company is expected to achieve total revenues of RMB 119.07 billion, RMB 133.28 billion, and RMB 148.36 billion for the years 2024, 2025, and 2026 respectively [4][5] - Net profits are projected to be RMB 40.10 billion, RMB 41.80 billion, and RMB 43.17 billion for the same years, with corresponding P/E ratios of 25, 24, and 23 times [4] - The company reported a significant increase in innovative drug sales, with a revenue of RMB 50.32 billion in the first half of 2024, representing a year-on-year growth of 80.6% [15] Market Performance - The closing price of the company's stock is HKD 17.80, with a one-year high of HKD 22.80 and a low of HKD 11.18 [2] - The total market capitalization is approximately HKD 105.65 billion [2]

Investment Rating - Maintain BUY rating for Hansoh Pharma with a target price raised to HK$25.24 from HK$24.11, indicating a potential upside of 37.6% from the current price of HK$18.34 [3][20]. Core Insights - Hansoh Pharma has successfully out-licensed its oral GLP-1 drug candidate HS-10535 to MSD, receiving an upfront payment of US$112 million and potential milestone payments up to US$1.9 billion, along with future sales royalties [1]. - The company has a robust pipeline of GLP-1 assets, including Fulaimei, HS-20094, and HS-10501, with ongoing clinical trials that position it competitively in the global oral GLP-1 drug development race [1][18]. - The safety profile of oral GLP-1 drugs is a critical differentiating factor, with various candidates showing promising weight loss data and varying safety concerns [1]. Financial Summary - Revenue is projected to grow from RMB 10,104 million in FY23A to RMB 12,301 million in FY24E, reflecting a year-on-year growth of 21.7% [2][23]. - Net profit is expected to increase significantly from RMB 3,277.5 million in FY23A to RMB 4,382.9 million in FY24E, marking a growth of 33.7% [2][23]. - The earnings per share (EPS) is forecasted to rise from RMB 0.55 in FY23A to RMB 0.74 in FY24E, with a P/E ratio decreasing from 31.1x to 23.3x [2][23]. Pipeline Development - Hansoh's HS-20094, a GLP-1/GIP dual agonist, has initiated a Phase 3 obesity study in China, with Phase 2 trial results expected next year [1]. - The company is also advancing HS-10501 through Phase 1 trials, further expanding its GLP-1 drug portfolio [1]. - The collaboration with MSD is anticipated to accelerate the development of HS-10535 and unlock its global potential [1].

财联社12月18日讯（编辑 牛占林）当地时间周三，默沙东宣布与中国翰森制药签署了一项价值高达20 亿美元的协议，将开发和销售这家中国生物技术公司的实验性口服减肥药，这种药物的作用类似于目前 流行的减肥药Wegovy和Zepbound。 根据协议，翰森制药授予默沙东开发、生产和商业化HS-10535(一种在研临床前口服小分子GLP-1受体 激动剂)的全球独家许可权。 默沙东表示，翰森制药将获得1.12亿美元的首付款，这是为了获取HS-10535的独家授权；此外，翰森制 药有资格根据候选药物的开发、注册审批和商业化进展获得最高19亿美元的里程碑付款，同时还将获得 基于产品销售的特许权使用费。 在特定条件下，翰森制药可能会在中国共同推广或独家商业化HS-10535。默沙东预计产生1.12亿美元或 每股0.04美元的税前费用，将计入2024年第四季度通用及非通用会计准则财务数据。 与目前市场上流行的注射减肥药Wegovy和Zepbound相比，口服减肥药最大的优势在于其给药方式更为 便捷，无需注射，这可以显著提高患者的治疗依从性。 制药商安进、罗氏、维京治疗等公司都在开发这种疗法，试图吸引那些不愿注射的患者。一些分析 ...

Summary of the Conference Call Company and Industry Overview - The conference call focused on **Hansen Pharmaceutical**, a leading player in the **innovative pharmaceutical industry** in China, with over 30 years of experience in the sector [3][4]. Key Points and Arguments Industry Outlook - The pharmaceutical sector is gradually recovering from a downturn experienced over the past two to three years, with expectations of improvement starting from Q4 2023 [1]. - Recent discussions have highlighted the positive direction of medical insurance negotiations and the encouragement of commercial insurance policies, which are expected to support the industry [1]. Company Performance - Hansen Pharmaceutical achieved a revenue of **10.104 billion CNY** in 2023, marking a **7.7%** increase year-over-year, with a net profit of **3.278 billion CNY**, a **26.85%** increase [7]. - In the first half of 2024, the company reported revenues of **6.506 billion CNY**, a **44.21%** increase, and a net profit of **2.726 billion CNY**, a **111.47%** increase, largely attributed to the recognition of revenue from two ADC products licensed to GSK [7]. Product Portfolio and Innovation - The company has successfully transitioned to an innovation-driven model, with over **60%** of its revenue coming from innovative drugs [4][11]. - Key products include **Amatinib**, the first domestically developed third-generation EGFR TKI, which has seen increasing market share and sales [5][15]. - The company is also focusing on expanding its pipeline, with **50 innovative drug products** currently in clinical research, including treatments for diabetes and autoimmune diseases [12][30]. Research and Development - Hansen has significantly increased its R&D investment from **9.3%** in 2017 to over **20%** in 2023, aligning with international standards for innovative drug companies [8]. - The company maintains a dual strategy of self-research and business development (BD), with successful collaborations leading to substantial licensing revenues [10][21]. Financial Projections and Valuation - The company is projected to maintain a revenue growth rate of over **20%** for its innovative drug products over the next five years, with expected revenues reaching **7.984 billion CNY**, **9.653 billion CNY**, and **11.641 billion CNY** by 2026 [34]. - The estimated fair value of Hansen Pharmaceutical is approximately **123 billion CNY**, translating to a target price of **22.27 HKD** per share [38]. Other Important Insights - The oncology segment remains a strong revenue driver, accounting for nearly **70%** of total income, while other therapeutic areas contribute around **10%** [8]. - The company is optimistic about the future growth of its hepatitis B treatment, **Amitin**, and its innovative diabetes treatment, which is expected to capture significant market share [22][28]. - The overall market for GLP-1 drugs is projected to exceed **7 billion CNY** in 2023, with Hansen's products positioned to gain a substantial share [28]. This summary encapsulates the key insights from the conference call regarding Hansen Pharmaceutical's performance, strategic direction, and market outlook.