Investment Rating - The report gives a "Buy" rating for the companies mentioned, particularly focusing on the healthcare sector and the community kitchen brand, Guoquan [18][22]. Core Insights - The report highlights the strong performance of domestic pharmaceutical companies in the first half of 2025, with notable revenue and profit growth across several key players [2][11]. - The report emphasizes the potential for investment in innovative drugs and the ongoing commercialization efforts within the pharmaceutical sector [16]. - Guoquan is recognized for its rapid expansion and effective business model in the community kitchen market, with a significant number of stores and a focus on cost-effective products [18][22]. Summary by Sections Domestic Pharmaceutical Companies Performance - Heng Rui Medicine reported revenue of 15.761 billion yuan, a year-on-year increase of 15.9%, and a net profit of 4.455 billion yuan, up 29.9% [2][11]. - Han Sen Pharmaceutical achieved revenue of 7.434 billion yuan, growing 14.3%, with a net profit of 3.135 billion yuan, up 15.0% [2][11]. - China Biopharmaceuticals recorded revenue of 17.57 billion yuan, a 10.7% increase, and a net profit of 3.39 billion yuan, up 12.3% [2][11]. - WuXi Biologics reported revenue of 9.953 billion yuan, a 16.1% increase, and a net profit of 2.339 billion yuan, up 56.0% [2][11]. Updates on Domestic Pharmaceutical Companies - Han Sen Pharmaceutical announced a placement of 108 million new shares at HKD 36.30 per share, raising approximately HKD 39.20 billion [3][12]. - Rongchang Biopharmaceutical's PD-1/VEGF dual antibody was included in the BTD by CDE for treating specific lung cancer cases [3][12]. - WuXi Biologics raised its 2025 revenue growth guidance from 12%-15% to 14%-16% [2][11]. Overseas Pharmaceutical Companies Updates - AstraZeneca's drug for systemic lupus erythematosus (SLE) has been submitted for approval in China [4][15]. - Novartis received approval for a drug targeting IgA nephropathy, marking a significant milestone in treatment options [4][15]. - Madrigal Pharmaceuticals' MASH therapy received conditional marketing authorization in the EU, becoming the first approved treatment for this condition [4][15]. Guoquan's Business Model and Market Position - Guoquan has rapidly expanded to over 10,000 stores within six years, focusing on community kitchen services [18][22]. - The company operates primarily in lower-tier cities, with 72% of its stores located in these areas, utilizing a low-cost franchise model [20][21]. - Guoquan's product offerings, particularly in hot pot and barbecue, contribute nearly 90% of its revenue, with a strong emphasis on brand identity and marketing [20][21]. Financial Projections for Guoquan - Guoquan is expected to add 1,000 new stores in 2025, reaching a total of 11,150 stores, with further acceleration in subsequent years [22]. - The company anticipates same-store sales growth in the mid-single digits for 2025, driven by expanded consumer scenarios and new product launches [22]. - Projected net profits for 2025, 2026, and 2027 are 420 million, 490 million, and 580 million yuan, respectively, with corresponding PE ratios of 22x, 18x, and 16x [22].

招银国际发布研报称，对科伦博泰生物-B(06990)SKB264的全球发展保持信心，将目标价由299.93港元 上调至498.55港元，此按现金流折现率作估值，维持"买入"评级。 上半年，公司合作收入及研发服务收入共录6.41亿元，包含对外授权SKB378(TSLP)予WindwardBio的首 付款，以及来自默沙东的里程碑付款。销售开支占销售额比例为58%，反映SKB264获批后开展商业活 动。现金及金融资产总值44.6亿元，为商业化及研发发展提供充足资金。 科伦博泰生物上半年收入9.5亿元人民币(下同)，期内产品销售额达3.1亿元人民币，当中SKB264贡献 3.02亿元，相当于该行全年预测的34%。SKB264早前获批用于治疗后线三阴性乳腺癌(TNBC)和EGFR突 变非小细胞肺癌(NSCLC)，目前正处于加速增长的初期阶段。管理层维持SKB264全年销售额8至10亿元 的目标。该行预期SKB264两个已获批适应症将自明年初起纳入国家医保目录。 ...

Core Viewpoint - 招银国际 maintains confidence in the global development of 科伦博泰生物-B (06990) SKB264, raising the target price from HKD 299.93 to HKD 498.55, based on discounted cash flow valuation, and maintains a "Buy" rating [1] Financial Performance - In the first half of the year, the company reported revenue of RMB 950 million, with product sales amounting to RMB 310 million, of which SKB264 contributed RMB 302 million, accounting for 34% of the annual forecast [1] - The company recorded cooperation and R&D service income of RMB 641 million, which includes an upfront payment for the licensing of SKB378 (TSLP) to WindwardBio and milestone payments from Merck [1] Product Development - SKB264 has been approved for the treatment of late-line triple-negative breast cancer (TNBC) and EGFR mutation non-small cell lung cancer (NSCLC), currently in the early stages of accelerated growth [1] - The management maintains a sales target for SKB264 of RMB 800 million to RMB 1 billion for the full year, with expectations that the two approved indications will be included in the national medical insurance catalog starting early next year [1] Cost Structure - Sales expenses accounted for 58% of sales, reflecting the commercial activities initiated following the approval of SKB264 [1] Financial Position - The total value of cash and financial assets is RMB 4.46 billion, providing sufficient funds for commercialization and R&D development [1]

Investment Rating - The report maintains a "Buy" rating for Kelun Biotech [2][15][26] Core Insights - Kelun Biotech's revenue for the first half of 2025 decreased by 31.3% year-on-year to RMB 950 million, with a net loss of RMB 145 million compared to a net profit of RMB 310 million in the same period last year [5][11] - The company's product sales reached RMB 310 million, with sac-TMT accounting for 97.6% of total product sales [6][12] - The report highlights the steady commercialization of key products, with a sales network covering 30 provinces and over 2,000 hospitals [6][12] - The target price has been raised from HK$298 to HK$552, indicating a potential upside of 22% [15] Financial Performance - In the first half of 2025, revenue from business development collaborations fell by 54.4% year-on-year to RMB 628 million [5][11] - R&D expenses decreased by 6.3% to RMB 612 million, while selling expenses surged by 334.8% to RMB 179 million, resulting in a selling expense ratio of 18.8% [5][11] - As of June 30, 2025, the company had cash and financial assets of approximately RMB 4.53 billion [5][11] Product Development - The report notes that SKB264 has received NMPA approval for two indications, with further approvals expected in 2025 [6][12][13] - The company is actively exploring additional indications for sac-TMT, including advanced solid tumors [7][13][14] - A multi-pronged R&D strategy is in place, focusing on both oncology and non-oncology fields, with several novel ADC drugs under development [8][14]

Core Viewpoint - The company reported a revenue of 950 million yuan for H1 2025, with a net loss of 145 million yuan, indicating a challenging financial period despite the commercial launch of key products [1] Business Analysis - The company is in its commercialization year, with sales beginning to ramp up. It has three products approved for market: Jiatailai (TROP2 ADC), Ketailai (PD-L1 monoclonal antibody), and Datailai (rituximab), covering 30 provinces and over 2,000 hospitals [1] - Jiatailai has received approval for two key indications: 2L+TNBC (triple-negative breast cancer) and 3L EGFRmt NSCLC (non-small cell lung cancer), with additional indications in the NDA stage and ongoing clinical trials, indicating a significant market opportunity [1] Future Clinical Pipeline - The company has a robust clinical pipeline with several products in various stages: A166 (HER2 ADC) in NDA stage, A400 (RET inhibitor) in registration clinical stage, and SKB315 (CLDN18.2 ADC) exploring combinations with PD-L1 monoclonal antibodies [2] - The ongoing clinical trials for SKB571 (EGFR/c-Met ADC) and SKB378 (TSLP) further enhance the company's long-term growth prospects [2] Profit Forecast and Valuation - The company expects revenues of 2.325 billion yuan, 3.668 billion yuan, and 5.352 billion yuan for 2025, 2026, and 2027 respectively, with a projected net profit of -350 million yuan, -51 million yuan, and 380 million yuan for the same years [2]

Core Viewpoint - The company's 1H25 performance exceeded expectations, driven by higher-than-expected licensing fees and milestone revenues, along with effective cost control [1][2]. Financial Performance - In 1H25, the company reported revenue of 950 million yuan, a year-on-year decrease of 31.3% - The net loss attributable to shareholders was 145 million yuan, with an adjusted loss of 69.4 million yuan [1]. Development Trends - The commercialization of TROP2 ADC Jiatai (sac-TMT) outside of domestic medical insurance is progressing smoothly, with commercial revenue reaching 310 million yuan in 1H25, of which Jiatai accounted for 97.6% - The marketing team has grown to over 350 members, covering 30 provinces and achieving sales in over 1,000 hospitals - The company anticipates further growth with expected approvals for 2L NSCLC in the second half of the year and ongoing efforts for medical insurance access by 2026 [1][2]. R&D Catalysts - The company has submitted a listing application for sac-TMT for 2L NSCLC, with expectations for approval in 2H25 and data presentation at the upcoming ESMO conference - The registration clinical phase for 1L NSCLC (PD-L1 TPS≥1%) is ongoing, with a potential listing application submission in 2H25 - The company plans to submit a listing application for A400 (RET inhibitor) within 2025 [2]. Profit Forecast and Valuation - Due to the recognition of licensing income and effective cost control, the forecast for net loss attributable to shareholders in 2025 has been adjusted from 900 million yuan to 672 million yuan - The 2026 net loss forecast remains unchanged at 174 million yuan - The target price has been raised by 57.1% to 550 HKD, indicating a potential upside of 20.6% from the current stock price [2].

Core Insights - The company reported a revenue of 982 million RMB for H1 2025, a decrease of 28.97% year-on-year, primarily due to a reduction in milestone payments from licensing and collaboration agreements [1] - The net loss narrowed to 145 million RMB, a significant improvement of 146.8% year-on-year, while adjusted losses decreased by 118% to 69 million RMB, indicating enhanced operational efficiency [1] - Research and development expenses amounted to 612 million RMB, reflecting a 6.3% decrease year-on-year [1] Revenue Breakdown - Revenue sources included 628 million RMB from licensing and collaboration agreements, 310 million RMB from drug sales, and a small amount from research services [1] - The core product, SKB264, achieved sales of 302 million RMB in H1 2025, accounting for 97.6% of total drug sales, with commercialization progressing well across 30 provinces and over 2,000 hospitals [1] Product Development and Clinical Trials - SKB264 is undergoing clinical trials for multiple indications, with domestic registration data expected to be presented at the 2025 ESMO conference [2] - Merck has initiated 14 overseas clinical trials for SKB264, covering various cancer types, with data readouts anticipated starting Q4 2026 [2] Pipeline and Future Prospects - The company is advancing its ADC platform with several candidates in clinical stages, including SKB315, SKB410, and SKB571, indicating a robust pipeline with diverse therapeutic targets [3] - Revenue forecasts for 2025, 2026, and 2027 have been adjusted upwards to 1.94 billion, 3.56 billion, and 5.89 billion RMB respectively, reflecting confidence in ongoing commercialization and clinical progress [3]

Core Viewpoint - The company has shown strong sales performance in 1H25, particularly with the rapid market penetration of Lukanosatuzumab, leading to an upward revision of peak sales estimates in mainland China to RMB 5.7 billion (approximately USD 800 million) [1][2] Group 1: Sales Performance - In 1H25, the company's revenue reached RMB 950 million, with commercial product sales contributing RMB 310 million, of which Lukanosatuzumab accounted for RMB 302 million [1] - The management expects Lukanosatuzumab to experience strong growth in 2H25, maintaining full-year sales guidance of RMB 800-1,000 million, driven by rapid market penetration and expanding indications [1][2] Group 2: Clinical Development - Key clinical data will be presented at the 2025 ESMO conference, including two Phase III clinical data for 2L HR+/HER2- breast cancer and second-line EGFRmt NSCLC indications, both of which have submitted sNDA and are under priority review [2] - The company is advancing multiple early pipeline projects, including SKB571 (EGFR/c-MET dual antibody ADC), which is expected to enter Phase II clinical trials, targeting differentiated indications such as gastrointestinal tumors [2] Group 3: Financial Outlook - The company has slightly raised its revenue forecasts for 2025-2027 and long-term peak sales estimates, reflecting increased certainty in product sales due to the timely progress of Lukanosatuzumab and early pipeline candidates [2] - The target price has been adjusted to HKD 507, corresponding to a 5.0x peak revenue sales multiple and an 18% potential upside, maintaining a buy rating [2]

Core Viewpoint - CICC maintains an outperform rating for Kelun-Biotech (06990) due to strong revenue recognition from licensing and effective cost control, raising the target price by 57.1% to HKD 550, indicating a 20.6% upside from the current stock price [1] Group 1: Financial Performance - In 1H25, the company reported revenue of CNY 950 million, exceeding CICC's expectations [1] - The commercial revenue for 1H25 reached CNY 310 million, with 97.6% attributed to the product Jiatailai [2] Group 2: Product Development and Market Expansion - The marketing team has grown to over 350 members, covering 30 provinces and achieving sales in over 1,000 hospitals [2] - The company is expected to receive domestic approval for 2L NSCLC in the second half of 2025 and is actively working on insurance inclusion for 2026 [2] Group 3: R&D Catalysts - The company has submitted a listing application for sac-TMT for 2L NSCLC, with expected approval in 2H25 and data presentation at the upcoming ESMO conference [3] - The company plans to submit a listing application for A400 (RET inhibitor) within 2025 [3] Group 4: Early Pipeline Developments - The company will present phase 1 clinical data for SKB315 (CLDN18.2 ADC) at the ESMO conference [4] - Global phase 1/2 trials for SKB410 (Nectin-4 ADC) have been initiated by Merck [4] - The dual-antibody ADC SKB571 is set to begin phase 2 clinical trials in China [4]

Core Viewpoint - CICC maintains an outperform rating for Kelun-Biotech (06990) due to strong revenue recognition from licensing and effective cost control, raising the target price by 57.1% to HKD 550, indicating a 20.6% upside from the current stock price [1] Group 1: Financial Performance - In 1H25, the company reported revenue of CNY 950 million, exceeding CICC's expectations [1] - The commercial revenue reached CNY 310 million, with 97.6% attributed to the product Jiatailai [2] Group 2: Market Expansion and Sales - The marketing team has grown to over 350 members, covering 30 provinces and achieving sales in over 1,000 hospitals [2] - The company is expected to further expand its market presence with anticipated approvals for 2L NSCLC and ongoing efforts for medical insurance inclusion by 2026 [2] Group 3: R&D Progress - The company has submitted a listing application for 2L NSCLC, with expectations for approval in 2H25 and data presentation at the upcoming ESMO conference [3] - The registration clinical phase for 1L NSCLC is ongoing, with a listing application expected in 2H25, and a submission for 2L HR+/HER2-BC planned for May 2025 [3] - The company plans to submit a listing application for A400 (RET inhibitor) within 2025 [3] Group 4: Early Pipeline Developments - The company will present phase 1 clinical data for SKB315 (CLDN18.2ADC) at the ESMO conference [4] - Global phase 1/2 trials for SKB410 (Nectin-4ADC) have been initiated by Merck [4] - The dual-antibody ADC SKB571 is set to start phase 2 clinical trials in China, while the radiolabeled drug SKB107 is undergoing phase 1 clinical research [4]