Core Viewpoint - Kelong Pharmaceutical's chairman, Liu Gexin, promotes the company's anti-aging product, "Methylthioadenosine Capsules," in a striking advertisement, showcasing his fitness at the age of 75, which has generated significant social media buzz [1][2]. Company Overview - Kelong Pharmaceutical (002422.SZ) has a market capitalization of 54.558 billion yuan and a stock price of 34.14 yuan [1]. - The company is exploring the health and wellness sector as a potential growth avenue, especially after experiencing a decline in revenue and net profit in the first quarter of the year [6]. Product Details - The "Methylthioadenosine Capsules" are marketed at 1,499 yuan per bottle (60 capsules), with each capsule containing 30 mg of the active ingredient [3]. - The product claims to have antioxidant effects that are 10 to 30 times more effective than traditional ingredients like Vitamin C and Coenzyme Q10 [3]. - The capsules are sold through online platforms and Japanese physical stores, with plans for further online sales on JD Overseas and Tmall International [6]. Marketing Strategy - Liu Gexin has been using the product for three years and maintains a strict fitness regimen, which the company emphasizes in its marketing [2][6]. - The advertisement has sparked discussions on social media, indicating a successful initial marketing impact [2]. Industry Context - The high-end anti-aging health product market is competitive, and consumer acceptance of the product's efficacy will take time to establish [6]. - Methylthioadenosine is gaining attention in the skincare and health supplement sectors for its potential anti-aging properties, although large-scale human trial data is still limited [6][7].

长江证券承销保荐有限公司 关于四川科伦药业股份有限公司分拆所属子公司四川科伦 博泰生物医药股份有限公司境外上市 2024年持续督导核查意见暨持续督导总结报告 四川科伦药业股份有限公司（以下简称"公司""上市公司""科伦药业"） 将其所属子公司四川科伦博泰生物医药股份有限公司（以下简称"科伦博泰生物"） 分拆在境外上市（以下简称"本次分拆上市""本次分拆"），长江证券承销保 荐有限公司作为本次分拆上市的独立财务顾问，根据中国证监会《上市公司分拆 规则（试行）》（以下简称"《分拆规则》"），对本次分拆后上市公司核心资 产与业务的独立经营状况及持续经营能力、科伦博泰生物是否发生对上市公司权 益有重要影响的资产和财务状况变化、科伦博泰生物是否存在其他对上市公司股 票价格产生较大影响的重要信息以及上市公司是否依法履行相关信息披露义务 等持续督导事项进行了专项核查，发表核查意见如下： 一、本次分拆上市概况 2023 年 1 月 13 日，公司召开第七届董事会第二十三次会议、第七届监事会 第十五次会议，审议通过了《关于分拆所属子公司四川科伦博泰生物医药股份有 限公司至香港联合交易所有限公司主板上市符合相关法律、法规规定的议 ...

Group 1: Business Strategy and Market Position - The company plans to enhance its generic drug business by developing a multi-product matrix through rapid product development and cost reduction strategies [1][2][3] - The 11th batch of drug procurement is expected to favor companies with high R&D efficiency and strong market access capabilities [1][2] - The company aims to maintain a stable market share in the intravenous infusion market despite overall market decline [1][2][3] Group 2: Financial Performance and Projections - The company's R&D investment increased by 11.2% to CNY 2.171 billion, supporting future growth [1][2][3] - The revenue from the antibiotic intermediate business is projected to reach CNY 280 million in 2025, up from CNY 196 million in 2024 [20] - The company reported a 43% decline in Q1 performance, attributed to the impact of national procurement and reduced market demand [30][31] Group 3: Product Development and Innovation - The company has three innovative drugs approved for five indications in China, with ongoing commercialization efforts [10][11] - The ADC (Antibody-Drug Conjugate) development strategy focuses on optimizing payload-linker designs to achieve competitive advantages [15][17] - The company is actively exploring new therapeutic areas, including autoimmune diseases, with ongoing collaborations [18][19] Group 4: Market Expansion and International Strategy - The company plans to expand into Southeast Asia, starting with Singapore, and is exploring partnerships in the Middle East [27][28] - The company is preparing to enter the health supplement market, targeting the aging population, which is projected to grow significantly [24][25] - The company aims to leverage its strong R&D capabilities and resource advantages to enhance its international competitiveness [26][27] Group 5: Corporate Governance and Shareholder Relations - The company maintains a stable asset-liability ratio of 28% and plans to optimize its capital structure [31][32] - The board is committed to shareholder returns, with a focus on maintaining a dividend payout ratio of around 52% [32] - The company emphasizes transparency and fairness in information disclosure to ensure market integrity [34]

Core Insights - The latest net value of ICBC Frontier Medical Stock A (001717) is 2.8300 yuan, reflecting a decrease of 1.77% [1] - The fund has shown a one-month return of 5.28%, ranking 400 out of 471 in its category; a three-month return of 8.06%, ranking 71 out of 471; and a year-to-date return of 7.56%, ranking 113 out of 469 [1] Fund Holdings - The top ten holdings of ICBC Frontier Medical Stock A account for a total of 59.05%, with the largest positions being: - Heng Rui Medicine (10.11%) - Kelun Pharmaceutical (8.01%) - WuXi AppTec (7.72%) - BeiGene (6.85%) - Xinlitai (4.90%) - Zai Lab (4.77%) - Yuyue Medical (4.60%) - New Horizon Health (4.36%) - East China Pharmaceutical (4.20%) - Haizhi Pharmaceutical (3.53%) [1] Fund Overview - ICBC Frontier Medical Stock A was established on February 3, 2016, and as of March 31, 2025, it has a total scale of 9.081 billion yuan [1] - The fund manager is Zhao Bei, who has extensive experience in the healthcare sector [2]

Group 1 - The core point of the news is the performance and holdings of the China Europe Medical Health Mixed A Fund, which has seen a recent decline in net value and varying returns over different time frames [1] - As of May 7, 2025, the latest net value of the fund is 1.5753 yuan, reflecting a decrease of 1.28%. The fund's return over the past month is -2.61%, ranking 4118 out of 4649 in its category. Over the past three months, the return is 4.24%, ranking 1179 out of 4597, and since the beginning of the year, the return is 1.73%, ranking 2415 out of 4556 [1] - The top ten stock holdings of the fund account for a total of 55.30%, with significant positions in companies such as Heng Rui Pharmaceutical (10.60%), WuXi AppTec (9.95%), and Kanglong Chemical (6.24%) [1] Group 2 - The China Europe Medical Health Mixed A Fund was established on September 29, 2016, and as of March 31, 2025, it has a total scale of 15.613 billion yuan. The fund manager is Ms. Ge Lan [1] - Ms. Ge Lan has a background in biomedical engineering with a Ph.D. from Northwestern University in the United States. She has held various research and fund management positions before becoming the manager of the China Europe Medical Health Mixed Fund [2]

Group 1: Business Segments Overview - The company expects stable performance in the infusion segment for 2025 compared to 2024, with growth anticipated in parenteral nutrition and powder-liquid dual-chamber bag products [2] - The company aims to expand its market share in specialty drugs, particularly in antibiotics, with effective market access achieved in 2024 [1] - The company plans to focus on expanding its diabetes medication portfolio, with products like Ertugliflozin and Sitagliptin expected to drive growth in the next 2-3 years [1] Group 2: International Expansion Strategy - The company is initiating its overseas strategy by targeting the preventive medicine sector in Singapore, with plans to expand into Southeast Asia [1] - Ongoing discussions with major pharmaceutical companies in the Middle East are part of the company's international market exploration [1] Group 3: Innovation Pipeline and Commercialization - The company has several important meetings planned for the second half of the year to discuss its innovation pipeline, particularly focusing on TROP2-ADC and other ADC products [3] - Three products across five indications have been approved since November last year, with a strong focus on major cancer types such as breast cancer and lung cancer [4] Group 4: Market Challenges and Responses - The tenth batch of centralized procurement has significantly impacted the company's potassium chloride injection segment, affecting both unit prices and market share [5] - The company plans to compensate for the decline in potassium chloride sales by increasing the volume of other plastic injection products [5] Group 5: Financial Performance and Cost Management - The gross margin for the infusion segment has slightly decreased in recent years, with the company implementing cost-reduction measures through new high-speed production lines [9] - The overall gross margin for Chuan Ning Bio is projected to be around 36% in 2024, reflecting a 4% increase compared to the previous year [9] - The company has seen a steady decline in sales expense ratios due to effective marketing management reforms [9] Group 6: Raw Material and Export Considerations - The company is currently exempt from U.S. tariffs on antibiotic intermediates, with most overseas sales directed to India [12] - Should tariffs be imposed, the company is prepared to take proactive measures to minimize the impact [12]

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical and biotechnology industry [8][29]. Core Insights - The industry is experiencing a return to normal growth, with a notable performance in chemical pharmaceuticals, while the overall revenue growth for 2024 is projected to decline by 0.6% year-on-year, marking the first decline in recent years [12][14]. - The report highlights a significant disparity among sectors, with chemical pharmaceuticals showing a remarkable net profit growth of 97.7%, while biological products face substantial short-term performance pressure [17][18]. - The current low allocation and valuation levels present a high cost-performance ratio for investments in the pharmaceutical sector, suggesting it is an excellent time to allocate resources [19][28]. Summary by Sections 1. Innovation in the Pharmaceutical Chain - The report notes that the impact of national procurement and anti-corruption measures is gradually diminishing, leading to a normal release of rigid demand in hospitals [11]. - The overall revenue growth for the industry in 2024 is projected at -0.6%, with net profit and non-recurring net profit declining by 8.1% and 5.9% respectively [12][13]. 2. Investment Recommendations - The report suggests focusing on the innovation drug supply chain (Biotech + CXO + upstream) and certain overseas medical devices, recommending companies such as Aosaikang, Yifang Bio, and WuXi AppTec for investment [29]. - For in-hospital products (traditional Chinese medicine, chemical pharmaceuticals, and medical devices), companies like Hengrui Medicine and Mindray Medical are highlighted as having more certain growth prospects [29]. 3. Market Positioning - The report indicates that the allocation of public fund products in pharmaceutical stocks has decreased from 11.2% in Q1 2024 to 8.7% in Q4 2024, with a slight recovery to 9.1% by Q1 2025 [19][21]. - The pharmaceutical sector's price-to-earnings ratio is at a 10-year low, suggesting potential for growth as innovative products continue to emerge [22][24].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q1 2025 revenue was 4.39 billion yuan, a year-on-year decrease of 29.42%, and the net profit attributable to the parent company was 584 million yuan, down 43.07%. The performance was generally in line with expectations [7] - The decline in revenue and profit was primarily due to a high base in Q1 2024, the impact of centralized procurement on the infusion business, and fluctuations in the prices of raw materials and intermediates [7] - The company is expected to maintain stable profits in its three main businesses (large-volume infusion, raw materials, and generic drugs) while benefiting from the commercialization of innovative drugs [7] Financial Forecasts - Total revenue forecast for 2023A is 21.454 billion yuan, with a year-on-year growth of 12.69%. For 2024A, it is projected at 21.812 billion yuan, with a growth of 1.67%. The forecast for 2025E is 25.3 billion yuan, reflecting a growth of 15.99% [1][8] - The net profit attributable to the parent company is forecasted to be 2.456 billion yuan for 2023A, with a growth of 44.03%. For 2024A, it is expected to be 2.936 billion yuan, a growth of 19.53%, and for 2025E, it is projected at 3.534 billion yuan, with a growth of 20.37% [1][8] - The earnings per share (EPS) for 2025E is estimated to be 2.21 yuan, with a price-to-earnings (P/E) ratio of 16.37 [1][8] Business Segments - The large-volume infusion segment is expected to maintain stable profits despite a projected revenue decline of 11.9% for 2024, primarily due to price impacts from centralized procurement [7] - The raw materials and intermediates segment is forecasted to achieve a revenue of 5.86 billion yuan for 2024, with a growth of 21%. The company anticipates stable profits in this segment for 2025 [7] - The generic drug segment is expected to maintain positive growth, driven by new products that can achieve significant market share through centralized procurement [7] Innovation and Internationalization - The innovative pipeline is expected to continue contributing significant revenue, with several products receiving approval and entering the market [7] - The company is actively pursuing internationalization, with ongoing clinical trials and potential overseas registrations for its innovative products [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q1 2025 revenue was 4.39 billion yuan, a year-on-year decrease of 29.42%, and the net profit attributable to the parent company was 584 million yuan, down 43.07% [7] - The decline in revenue and profit is attributed to a high base in Q1 2024, the impact of centralized procurement on the infusion business, and fluctuations in the prices of raw materials and intermediates [7] - The company is expected to maintain stable profits in its three main businesses: large-volume infusion, raw materials, and generic drugs, while the innovative drug pipeline is anticipated to contribute significantly to revenue [7] Financial Forecasts - Total revenue is projected to reach 25.3 billion yuan in 2025, with a year-on-year growth of 15.99% [1] - The net profit attributable to the parent company is expected to be 3.53 billion yuan in 2025, reflecting a growth of 20.37% [1] - The earnings per share (EPS) is forecasted to be 2.21 yuan in 2025, with a price-to-earnings (P/E) ratio of 16.37 [1] Business Segments - The large-volume infusion segment is expected to generate 8.91 billion yuan in revenue for the full year 2024, with a decline of 11.9% [7] - The raw materials and intermediates segment is projected to achieve 5.86 billion yuan in revenue for 2024, showing a growth of 21% [7] - The generic drug segment is expected to maintain positive growth, supported by new products entering the market [7] Innovation and Internationalization - The innovative drug pipeline is expected to continue generating significant revenue, with products like TROP2 ADC and others receiving regulatory approval [7] - The company is actively pursuing internationalization, with ongoing clinical trials and potential overseas registrations for its innovative products [7] Valuation Metrics - The company is projected to have a P/E ratio of 12.38 by 2027, indicating a favorable valuation outlook [1] - The net profit margin is expected to improve to 15.28% by 2027 [8]

Investment Rating - The report indicates a cautious outlook for the pharmaceutical industry, with a focus on recovery in 2024 after a challenging 2023 due to anti-corruption measures [6][19]. Core Insights - The pharmaceutical industry is projected to see a decline in sales revenue and net profit for 2024 compared to 2023, with total sales revenue growth at -0.46%, net profit at -6.73%, and non-recurring net profit at -11.97% [2][13]. - The fastest-growing segments in Q4 2024 are expected to be CXO, medical devices, and pharmaceutical distribution, while in Q1 2025, the growth leaders will shift to CXO, pharmacies, and pharmaceutical distribution [22]. - The report highlights a significant slowdown in growth for traditional Chinese medicine and a mixed performance across various sectors, with some showing resilience and others facing challenges [5][24]. Summary by Sector Pharmaceutical Industry - In 2024, the total revenue growth for 405 pharmaceutical companies is projected at -0.46%, with net profit declining by 6.73% [2][13]. - Q1 2025 shows a continued decline in revenue and net profit, indicating ongoing challenges [13]. Traditional Chinese Medicine - For 62 listed companies in traditional Chinese medicine, revenue and net profit are expected to decline by -3.9% and -14.6% respectively in 2024, with further declines in Q1 2025 [24][32]. Chemical Preparations - The 96 chemical preparation companies are expected to see revenue growth of 1.2% and net profit growth of 15.7% in 2024, with a slight slowdown in Q1 2025 [2][5]. Research Services - The 16 research service companies are projected to experience a revenue increase of 6.56% in 2024, despite a significant drop in net profit [2][5]. Medical Services - The 11 medical service companies are expected to face revenue growth of 1.4% in 2024, with a notable recovery in Q1 2025 [2][5]. Medical Devices - The 97 medical device companies are projected to see a slight revenue increase of 1.16% in 2024, with a decline in net profit [2][5]. Biopharmaceuticals - The 54 biopharmaceutical companies are expected to see a revenue decline of -6.9% in 2024, with a significant drop in Q1 2025 [3][5]. CXO - The 22 CXO companies are projected to experience a revenue decline of -4.14% in 2024, but a recovery is anticipated in Q1 2025 with a revenue increase of 13.1% [3][5]. Raw Materials - The 50 raw material companies are expected to see a slight revenue increase of 2.48% in 2024, with a recovery trend starting in Q1 2025 [3][5]. Pharmacies - The 7 pharmacy companies are projected to see revenue growth of 4.9% in 2024, but face challenges in Q1 2025 [2][5]. Pharmaceutical Distribution - The 22 pharmaceutical distribution companies are expected to see a slight revenue increase of 0.27% in 2024, with ongoing challenges in Q1 2025 [2][5].