Market Review - The CITIC Pharmaceutical Index increased by 1.80%, outperforming the CSI 300 Index by 0.98 percentage points, ranking 16th among 30 CITIC first-level industry indices [5] - The top ten stocks by increase this week include Frontier Biologics-U, Medici, Lianhuan Pharmaceutical, Kangchen Pharmaceutical, and others, with Frontier Biologics-U leading at 41.43% [4][5] - The bottom ten stocks by decrease include ST Weiming, Shenzhou Cell, and Shuotai Shen, with ST Weiming dropping by 18.51% [4][5] Overall Viewpoint and Investment Themes - The current valuation of the pharmaceutical sector is at a low point, with public funds (excluding pharmaceutical funds) having low allocation to the sector. The company remains optimistic about the growth of the pharmaceutical industry by 2025, driven by macroeconomic factors and the demand from major categories [9] - In the innovative drug sector, there is a shift from quantity logic to quality logic, focusing on differentiated domestic and international pipelines. The company suggests paying more attention to products and companies that can ultimately realize profits [9] - In the medical device sector, there is a noticeable recovery in bidding volumes for imaging equipment, and the home medical device market is expected to benefit from subsidy policies. The company highlights the potential for import substitution and growth in the orthopedic sector post-collection [9] - The innovation chain (CXO + life sciences services) is expected to see a rebound in overseas investment and a bottoming out in domestic investment, with a potential return to high growth by 2025 [9] - The pharmaceutical industry is anticipated to enter a new growth cycle, with a focus on specialty raw materials and the expiration of patents leading to new growth opportunities [9] Industry and Company Events - The company highlights the innovative layout of traditional Chinese medicine enterprises, with several products in clinical II and III phases, including those targeting chronic insomnia and primary acute gouty arthritis [29][30] - Yunnan Baiyao has several drugs in various clinical stages, including those for prostate cancer and other conditions, indicating a robust pipeline [16][19] - The company emphasizes the importance of the blood products sector, which is expected to see significant growth due to relaxed approval processes and increased production capacity [14] - The innovative drug pipeline of Yiling Pharmaceutical focuses on cardiovascular, respiratory, and endocrine diseases, with multiple drugs in clinical trials [20][21]

Core Viewpoint - The hair medical concept sector has shown a positive performance with a 1.77% increase, ranking 7th among various concept sectors, driven by significant gains in stocks like Xiaofang Pharmaceutical, Baicheng Pharmaceutical, and Jiuzhitang [1] Group 1: Sector Performance - The hair medical concept sector experienced a 1.77% increase, with 17 stocks rising, including Xiaofang Pharmaceutical (up 6.65%), Baicheng Pharmaceutical (up 6.05%), and Jiuzhitang (up 6.00%) [1] - The sector attracted a net inflow of 114 million yuan from main funds, with Jiuzhitang leading the inflow at 74.56 million yuan [1] Group 2: Fund Inflow Ratios - Baicheng Pharmaceutical, Aoyang Health, and Yisheng Pharmaceutical had the highest net inflow ratios at 10.73%, 7.21%, and 6.37% respectively [2] - Jiuzhitang recorded a net inflow of 74.56 million yuan with a turnover rate of 27.18% [2] - Other notable stocks include Langzi Co. (up 5.16% with a net inflow of 20.14 million yuan) and Aoyang Health (up 1.03% with a net inflow of 10.81 million yuan) [2]

Core Viewpoint - The resignation of Xiao Wei as chairman of Kangyuan Pharmaceutical has raised concerns, particularly regarding the company's declining performance and the potential implications for its future direction [2][3][4]. Management Changes - Xiao Wei resigned from his position as chairman due to "personal reasons," but will continue to serve as a director and in other roles within the company [3][4]. - The change in legal representative from Xiao Wei to Gao Haixin occurred a month prior to the resignation announcement, suggesting a planned transition [3][4]. - Gao Haixin, the new legal representative, has a background in engineering but lacks direct experience in pharmaceutical management, raising concerns about potential disconnects in technical and managerial aspects [9] Financial Performance - Kangyuan Pharmaceutical reported a significant decline in both revenue and net profit for 2024, with total revenue of 3.898 billion yuan, down 19.86% year-on-year, and a net profit of 392 million yuan, down 15.58% [5][10]. - The first quarter of 2025 showed continued deterioration, with revenue dropping 35.38% and net profit decreasing by 38.37% compared to the same period in the previous year [8][10]. Product Performance - The company's core products, particularly the heat toxin injection and ginkgo biloba injection, faced significant sales declines, contributing to the overall revenue drop [10][11]. - The heat toxin injection's sales volume decreased by 30.98%, while the ginkgo biloba injection's sales volume nearly halved, leading to increased inventory levels [10][11]. - Other product lines, including capsules and granules, also experienced revenue declines, with only oral liquids and gels showing growth, albeit with reduced profit margins [12]. Industry Context - The Chinese traditional medicine injection market is facing increased regulatory scrutiny, impacting sales and profitability [11][12]. - The government's policies aimed at cost control in healthcare have further pressured the pricing and sales of traditional Chinese medicine injections, leading to significant price reductions and profit erosion [11][12].

证券简称：康缘药业 证券代码：600557 公告编号：2025-026 江苏康缘药业股份有限公司 一、《药物临床试验批准通知书》主要内容 关于收到 KYS2301 凝胶临床试验批准通知书的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 KYS2301 凝胶审批结论：根据《中华人民共和国药品管理法》及有关规定， 经审查，2025 年 4 月 21 日受理的 KYS2301 凝胶临床试验申请符合药品注册的有 关要求，同意本品开展"特应性皮炎"适应症的临床试验。 江苏康缘药业股份有限公司（以下简称"公司"）近日收到国家药品监督管 理局签发的 1 类化学新药 KYS2301 凝胶（三种规格）的《药物临床试验批准通知 书》。按照《上海证券交易所上市公司自律监管指引第 3 号—行业信息披露》的 相关要求，现将相关情况公告如下： 二、药品研发及相关情况 | 药品名称 | KYS2301 凝胶 | | --- | --- | | 适应症 | 特应性皮炎 | | 注册分类 | 化药 1 类 | | 剂型 | 凝胶剂 | | 申请人 | 江 ...

Core Viewpoint - The company has received approval for clinical trials of KYS2301, a novel drug targeting atopic dermatitis, which presents significant market potential as it is the first CCR8-targeting peptide inhibitor globally [1] Company Summary - The company announced the receipt of a clinical trial approval notice from the National Medical Products Administration for KYS2301, a first-class chemical new drug [1] - KYS2301 is a specific inhibitor of chemokine receptor 8 (CCR8) and is intended for the treatment of atopic dermatitis [1] - The total research and development investment for KYS2301 has reached approximately 44.93 million yuan [1] Industry Summary - Atopic dermatitis is a common chronic relapsing inflammatory skin disease, with the global patient population reaching 649 million in 2019 and expected to grow to 755 million by 2030 [1] - Currently, there are no marketed peptide drugs targeting the CCR8 receptor, indicating a strong market opportunity for KYS2301 [1] - The company is required to complete Phase I-III clinical trials and compile submission materials for product registration following the receipt of the clinical trial notice [1]

Market Performance - The hair medical concept sector rose by 2.34%, ranking 10th among concept sectors, with 19 stocks increasing in value, including JiuZhiTang which hit the daily limit, and TianEnKang, KangHui Pharmaceutical, and KangYuan Pharmaceutical which rose by 6.42%, 5.16%, and 4.55% respectively [1] - The top gainers in today's market include the fruit index at 4.73%, PCB concept at 3.27%, and AI mobile at 2.92%, while the military restructuring concept saw a decline of 1.49% [1] Capital Flow - The hair medical concept sector experienced a net inflow of 219 million yuan, with 11 stocks receiving net inflows, and 5 stocks seeing inflows exceeding 10 million yuan. JiuZhiTang led with a net inflow of 172 million yuan, followed by ShuiYang Co., KangYuan Pharmaceutical, and NengTe Technology with net inflows of 34.25 million yuan, 21.05 million yuan, and 13.44 million yuan respectively [1] - In terms of capital inflow ratios, JiuZhiTang, ShuiYang Co., and KangHui Pharmaceutical had the highest net inflow rates at 33.17%, 6.81%, and 6.15% respectively [2] Stock Performance - JiuZhiTang saw a significant increase of 10.06% with a turnover rate of 7.62%, while ShuiYang Co. and KangYuan Pharmaceutical increased by 3.12% and 4.55% respectively [2] - Stocks such as *ST JinBi and AoYang Health experienced declines of 0.69% and 0.26% respectively, indicating some volatility within the sector [1][3]

Investment Rating - The report maintains a "Buy" rating for the company [7][5]. Core Views - The report highlights that Kangyuan Pharmaceutical, as a leader in innovative traditional Chinese medicine, is expected to stabilize its revenue in Q2 2025 due to the easing of compliance impacts and a return to normalcy in seasonal flu incidence [1][4]. - The acquisition of 100% of Zhongxin Pharmaceutical is anticipated to enhance the company's value through the development of innovative biopharmaceuticals, with significant data readouts expected from ongoing projects in 2025 and 2026 [1][3]. Summary by Sections Company Overview - Kangyuan Pharmaceutical acquired Zhongxin Pharmaceutical for 270 million RMB, with Zhongxin currently not profitable and having a net asset of -423 million RMB as of 9M24 [2]. - Zhongxin's clinical pipeline includes four core products, with an estimated funding requirement of 400 million RMB for clinical trials [2]. Financial Performance - The company's revenue is projected to recover in 2025, with expected revenue growth of 8.4% in 2025 and 10.48% in 2026 [11]. - The net profit attributable to the parent company is forecasted to be 4.4 billion RMB in 2025, 5.1 billion RMB in 2026, and 5.8 billion RMB in 2027, reflecting a growth rate of 12.26% and 15.43% respectively [11][5]. Valuation - The target price for the company is set at 17.09 RMB, based on a 22x PE ratio for 2025, which reflects a premium over the average PE of comparable companies at 15x [5][12]. - The report anticipates that the company's innovative pipeline and product portfolio will drive high growth potential post-compliance challenges [5][3].

Group 1 - Jiangsu Province Urban Football League announced a new partnership with Kangyuan Pharmaceutical, a leading domestic traditional Chinese medicine innovation company [1][3] - The "Super League" now has a total of 26 sponsors, with Jiangsu Bank as the main sponsor and 8 strategic partners including Kangyuan Pharmaceutical [3] - The partnership reflects the diversification and inclusiveness of the "Super League" cooperation model, expanding from finance, automotive, and food industries to the pharmaceutical sector [5] Group 2 - Kangyuan Pharmaceutical is based in Lianyungang, Jiangsu, and is recognized for its innovation in traditional Chinese medicine, holding multiple national research platforms [5] - The company has received several prestigious awards, including one National Technology Invention Second Prize and three National Science and Technology Progress Second Prizes [5] - The increasing attention on the "Super League" is expected to enhance its profile in the sports culture sector, supported by partners like Kangyuan Pharmaceutical [5]

Core Viewpoint - On June 30, a total of 31 listed companies had their restricted shares unlocked, with a total market value of approximately 31.50 billion yuan [1]. Group 1: Unlocking Details - The specific details of the restricted share unlocks include: - Meili Ecology (000010): 239 million shares from A-share issuance to original shareholders - Xingrong Environment (000598): 4.926 million shares from equity incentive lock-up - Yueyang Xinchang (000819): 526,800 shares from equity incentive lock-up - Gaohong Co., Ltd. (000851): 4.944 million shares from equity incentive lock-up - Zhongyan Chemical (600328): 470,460 shares from equity incentive lock-up - Yangnong Chemical (600486): 115,480 shares from equity incentive lock-up - Kangyuan Pharmaceutical (600557): 2.6093 million shares from equity incentive lock-up - Keda Technology (002518): 1.3953 million shares from equity incentive lock-up - Longci Technology (300835): 562,700 shares from equity incentive lock-up - Weiming Environmental Protection (603568): 3.129 million shares from equity incentive lock-up - Dongrui Co., Ltd. (001201): 486,400 shares from A-share issuance to original shareholders - Sanwei Co., Ltd. (603033): 1.183 million shares from equity incentive lock-up - Naer Co., Ltd. (002825): 140,000 shares from equity incentive lock-up - Jinyinhe (300619): 1.6248 million shares from A-share issuance to legal persons - Tianyuan Environmental Protection (301127): 14.6 million shares with extended lock-up period - Youningwei (301166): 40.6188 million shares with extended lock-up period - Xutian Salt Industry (600929): 3.033 million shares from equity incentive lock-up - Keli Sensor (603662): 722,800 shares from equity incentive lock-up - Gongniu Group (603195): 641,200 shares from equity incentive lock-up - Fuyuan Pharmaceutical (601089): 27.5 million shares from pre-issue lock-up - Xinbang Intelligent (301112): 7.4097 million shares from pre-issue lock-up - Shanghai Port Bay (605598): 29,400 shares from equity incentive lock-up - Dingjide (603255): 507,500 shares from equity incentive lock-up - United Precision (001268): 6.154 million shares from pre-issue lock-up - Pinggao Co., Ltd. (688227): 48.9585 million shares - Chunli Medical (688236): 20.9 million shares - Zhongwulian (688297): 40.3 million shares - Lais Information (688631): 163,480 shares - Shichuang Energy (688429): 200,000 shares - Xindong Link (688582): 220,840 shares - Aike Saibo (688719): 100,000 shares [2].

Core Insights - Kangyuan Pharmaceutical has been recognized for its continuous R&D innovation capabilities, ranking 21st in the overall R&D strength and 1st in traditional Chinese medicine R&D strength at the "2025 PDI Pharmaceutical R&D Innovation Conference" [1] Group 1: R&D Achievements - Kangyuan Pharmaceutical has consistently increased its R&D investment, with R&D expenses as a percentage of revenue rising from 13.92% in 2022 to 15.85% in 2023, and projected to reach 16.79% in 2024 [1] - The number of R&D personnel has also grown, expected to reach 782 by 2024, accounting for 12.75% of the total workforce [1] Group 2: Strategic Initiatives - The company has been advancing its "one body, two wings" strategy and has established a "R&D generation, planning generation" model to enhance overall innovation capability and market competitiveness [2] Group 3: Product Development Pipeline - In the traditional Chinese medicine sector, as of Q1 2025, Kangyuan has several products in various stages of development, including 1 in NDA technical review, 2 in Pre-NDA, and 4 in Phase III clinical trials [3] - In the chemical drug sector, the company has 2 products in Phase III clinical trials and 3 in Phase II, targeting conditions such as Alzheimer's disease and idiopathic pulmonary fibrosis [3] - In the biopharmaceutical sector, following the acquisition of Zhongxin Pharmaceutical, Kangyuan has 4 biopharmaceutical innovations in clinical stages, including KYS202002A and KYS2020004A [3] Group 4: Modernization Efforts - As a traditional Chinese medicine enterprise, Kangyuan is promoting modernization through a comprehensive innovation system that includes "ancient text analysis and clinical evaluation" [4] - The company is also advancing the construction of intelligent extraction and formulation factories, utilizing industrial robots and big data analytics to improve production efficiency and quality control [4] - Kangyuan has set a timeline for the commercialization of biopharmaceuticals, aiming for market entry within 3 to 5 years [4]