Core Viewpoint - Yiling Pharmaceutical (002603) announced the approval of its subsidiary Hengtai Wanyang's application for the chemical raw material drug Anastrozole by the National Medical Products Administration [1] Group 1 - Yiling Pharmaceutical's wholly-owned subsidiary, Hengtai Wanyang Pharmaceutical Co., Ltd., received the approval notice for the listing application of Anastrozole [1]

Core Viewpoint - Yiling Pharmaceutical (002603.SZ) has demonstrated strong performance in Q3 2025, with revenue of 1.827 billion yuan, a year-on-year increase of 3.78%, and a significant growth in net profit, indicating robust business fundamentals and potential for future growth [3][4]. Business Foundation - The company has a solid foundation in traditional Chinese medicine, with 17 patented products, 11 of which are included in the national medical insurance directory, ensuring stable growth [4][5]. - Key products such as Tongxinluo Capsule and Qiyuqiangxin Capsule have maintained top positions in the cardiovascular market, supported by clinical guidelines [5]. Growth Potential - The biopharmaceutical segment is advancing with a strategy that includes both generic and innovative drug development, leading to a second growth phase [6][7]. - The health segment targets specific consumer needs, tapping into a trillion-level health consumption market, which provides new growth opportunities [6][7]. R&D Investment - Yiling Pharmaceutical invested 544 million yuan in R&D in the first three quarters of 2025, leading the domestic traditional Chinese medicine sector, with cumulative R&D investment exceeding 5 billion yuan from 2019 to 2024 [6][7]. - The company has established a robust pipeline with multiple products in various stages of development, ensuring sustainable growth [7][8]. International Expansion - The company has expanded its international presence, with products like Tongxinluo Capsule and Qiyuqiangxin Capsule entering over 50 countries, enhancing its global market reach [10][11]. Shareholder Returns - The company has shown commitment to shareholder returns, with earnings per share reaching 0.5988 yuan, a year-on-year increase of 80.31%, and a dividend payout of 5.01 billion yuan, representing 77% of the profit [11].

Group 1: Company Overview and Market Position - Yiling Pharmaceutical is recognized as the company with the most approved innovative traditional Chinese medicine (TCM) products since 2020 [2] - The company has established a comprehensive management system for intellectual property and trade secrets to protect its innovations [2] Group 2: Product Promotion Strategies - In the hospital market, the company is enhancing specialized promotion efforts based on five national key research projects [3] - In the external market, the company focuses on brand strategy, aiming to strengthen brand building and improve customer compliance with products [3] Group 3: Innovative Drug Development - The company has multiple innovative drugs in clinical stages, including XY0206 for acute myeloid leukemia and XY03-EA for ischemic stroke [6] - Future R&D plans include over ten products in respiratory, endocrine, digestive, gynecological, and pediatric fields [4] Group 4: Sales Expectations and Strategies - The BaZi Kidney Supplement Capsule is expected to enhance immune function and improve aging-related symptoms, with research published in high-impact journals [7][8] - The company is increasing sales efforts through retail and e-commerce channels, focusing on brand building and customer relationship management [8] Group 5: Market Potential and Financial Outlook - The market for diabetic retinopathy treatment is promising, with approximately 116.4 million diabetes patients in China and a DR prevalence rate of about 34.6% [11] - The company anticipates a recovery in gross profit margins due to declining prices of traditional Chinese medicinal materials and internal efficiency improvements [12]

关于收到化学原料药上市申请批准通知书的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没 有虚假记载、误导性陈述或重大遗漏。 证券代码：002603 证券简称：以岭药业 公告编号：2025-042 石家庄以岭药业股份有限公司 近日，石家庄以岭药业股份有限公司（以下简称"公司"）全资孙公司万洋 衡水制药有限公司（以下简称"衡水万洋"）收到国家药品监督管理局下发的《化 学原料药上市申请批准通知书》，由衡水万洋提交的"阿那曲唑"化学原料药上 市申请已获批准。现就相关事项公告如下： 一、批准通知书基本内容 年预计 376 亿美元，2030 年将达 550 亿美元。其中芳香化酶抑制剂类药物占全 球乳腺癌药物市场 38%的份额，阿那曲唑作为一线治疗药物市场需求稳定。近年， 中国乳腺癌发病率逐年上升，预计原料药市场需求将持续增长。同时，公司全资 孙公司北京以岭生物工程技术有限公司持有阿那曲唑片制剂批文，该产品为集采 产品，预计今年可实现原料药制剂一体化生产，有力提高原料药和制剂的市场竞 争力。另外，公司将以本次国内获批为契机，根据出海规划，加速推进阿那曲唑 原料药的国际注册和海外销售，进一步打开欧美等海外市 ...

Core Viewpoint - Yiling Pharmaceutical (002603) announced that its wholly-owned subsidiary, Wanyang Hengshui Pharmaceutical Co., Ltd., has received approval from the National Medical Products Administration for the marketing application of Anastrozole, a drug used primarily for treating estrogen-related tumors, particularly in postmenopausal women with hormone receptor-positive breast cancer [1]. Company Summary - Yiling Pharmaceutical's subsidiary, Wanyang Hengshui, has successfully obtained a marketing approval for Anastrozole [1]. - Anastrozole is widely used in the treatment of estrogen-related tumors, especially in postmenopausal women with HR+ breast cancer [1].

Core Viewpoint - Yiling Pharmaceutical (002603.SZ) announced that its wholly-owned subsidiary, Wanyang Hengshui Pharmaceutical Co., Ltd., has received the approval notice for the listing application of Anastrozole chemical raw material from the National Medical Products Administration [1] Group 1: Product Approval - The listing application for Anastrozole, a drug widely used for treating estrogen-related tumors, particularly in postmenopausal hormone receptor-positive (HR+) female breast cancer patients, has been approved [1] - Yiling Pharmaceutical's wholly-owned subsidiary, Beijing Yiling Biotechnology Co., Ltd., holds the formulation approval for Anastrozole tablets, which are part of a centralized procurement product [1] Group 2: Production Integration - The company expects to achieve integrated production of raw materials and formulations for Anastrozole this year [1]

Core Insights - The core viewpoint of the article highlights the significant growth in net profit for Yiling Pharmaceutical in Q3 2025, with a notable increase in profitability driven by improved core business performance and effective cost control measures [2][3][4]. Financial Performance - In Q3 2025, Yiling Pharmaceutical reported revenue of 1.827 billion yuan, a year-on-year increase of 3.78%, while net profit attributable to shareholders surged by 1264.61% to 332 million yuan [2][3]. - From the beginning of the year to the end of the reporting period, the company achieved a total revenue of 5.868 billion yuan and a net profit of 1 billion yuan, reflecting a year-on-year growth of 80.33% [2][3]. - The non-recurring net profit reached 966 million yuan, marking a year-on-year increase of 90.53%, indicating strong short-term performance and long-term profitability potential [2][3]. Profitability Drivers - The explosive growth in quarterly profit is primarily attributed to the leap in core business profitability, with the non-recurring net profit growth significantly outpacing the net profit, indicating a substantial improvement in core business performance [4]. - The company achieved a reduction in operating costs from 2.967 billion yuan to 2.316 billion yuan, leading to an increase in gross margin, which has been a key factor in profit growth [6]. Cost Control and Efficiency - Yiling Pharmaceutical implemented effective cost control and expense optimization strategies, reducing sales expenses from 1.672 billion yuan to 1.353 billion yuan through refined marketing strategies and channel optimization [6]. - Financial expenses saw a remarkable decrease of 107.07%, transforming from a cost item to a revenue item, further enhancing profitability [7]. Industry Context - The financial performance of Yiling Pharmaceutical is closely aligned with the overall development trends in the traditional Chinese medicine (TCM) industry, showcasing strong adaptability and competitive advantages [8][9]. - The company has effectively managed cost pressures from fluctuating raw material prices through centralized procurement and process optimization, establishing a core competitive advantage [8]. - The TCM industry is experiencing a trend of concentration among leading players, with Yiling Pharmaceutical benefiting from brand recognition, economies of scale, and ongoing R&D investments [9]. Policy and Innovation - Supportive government policies for the TCM industry have provided a favorable environment for growth, with Yiling Pharmaceutical increasing its R&D expenditure to 544 million yuan, representing 9.27% of revenue [10]. - The company is actively exploring innovation in traditional TCM products by leveraging modern technology to validate efficacy and enhance quality, while also adapting classic formulas to market demands [11].

Group 1: Target Price Increases - The companies with the highest target price increases on October 28 include Xueda Education, Dong'e Ejiao, and China Automotive Technology Research Center, with target price increases of 75.33%, 64.38%, and 58.15% respectively [1][3] - Xueda Education received a "Buy" rating from Huatai Securities with a target price of 73.36 yuan [3] - Dong'e Ejiao was rated "Hold" by Nomura Orient International Securities with a target price of 78.00 yuan [3] - China Automotive Technology Research Center was rated "Increase" by Guotai Haitong Securities with a target price of 27.55 yuan [3] Group 2: Broker Recommendations - On October 28, a total of 262 listed companies received broker recommendations, with Qingdao Beer receiving the highest number of recommendations at 13 [4][5] - Ningbo Bank and Yanjinpuzi both received 11 recommendations [4] - The companies with the most broker recommendations include Qingdao Beer (13), Ningbo Bank (11), and Yanjinpuzi (11) [5] Group 3: Rating Adjustments - On October 28, Guotou Securities upgraded Yiling Pharmaceutical's rating from "Increase" to "Buy" [6] - Six companies had their ratings downgraded, including Baoxiniang, which was downgraded from "Buy" to "Increase" by Everbright Securities [7] - Other companies with downgraded ratings include Waifu Holdings and Fuanna, with ratings adjusted to "Cautious Recommendation" and "Increase" respectively [7] Group 4: First Coverage - Five companies received first coverage on October 28, including Qianyan Biology, which was rated "Increase" by Caitong Securities [8] - Other companies receiving first coverage include Dazhong Mining, Songyuan Safety, Daotong Technology, and Hehe Information, all rated "Buy" or "Increase" by various securities firms [8]

Core Viewpoint - Yiling Pharmaceutical has shown signs of recovery in its performance for the first three quarters of 2025, with a significant increase in net profit despite a decline in revenue compared to the previous year [1][3]. Financial Performance - For the first three quarters of 2025, Yiling Pharmaceutical reported revenue of 58.68 billion yuan, a year-on-year decrease of 7.82%, while net profit attributable to shareholders reached 10 billion yuan, marking an 80.33% increase [1][3]. - The company's revenue for the same period in 2024 was approximately 64 billion yuan, with a net profit of 5.55 billion yuan, reflecting a year-on-year decline of about 26% and 68% respectively [1]. - In Q3 2025, Yiling's revenue turned positive with a net profit of 3.32 billion yuan, the highest level in nearly three years [1][5]. Cost Management - A significant factor in the profit increase was a reduction in sales expenses, which totaled 13.53 billion yuan for the first three quarters, down by 3.19 billion yuan compared to the previous year [1][6]. - The gross margin and net margin for the first three quarters of 2025 were 60.53% and 16.99%, respectively, indicating an upward trend [1]. Product Portfolio and Market Position - Yiling Pharmaceutical's product range includes patented traditional Chinese medicine, biopharmaceuticals, and health products, addressing various medical fields such as cardiovascular, respiratory, and diabetes [6]. - The company is focusing on the anti-aging drug, Baizi Bujin Capsule, which is expected to have a broad market potential if its efficacy is confirmed [7]. Cash Flow and Dividends - The operating cash flow for the first three quarters of 2025 was 12.78 billion yuan, representing a year-on-year increase of 296.19% [7]. - On October 22, 2025, the company distributed a cash dividend of 5.01 billion yuan, indicating a return to profitability [8]. Leadership Transition - The company is under new leadership with Wu Xiangjun taking over as chairman and general manager in 2023, following the retirement of founder Wu Yiling [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.67 RMB, reflecting a positive outlook based on the company's recovery and growth potential [7][5]. Core Insights - The company has shown significant improvement in its financial performance, with a notable increase in net profit and revenue in the third quarter of 2025, indicating a return to a growth trajectory [1][2]. - The operational efficiency and cash flow have been steadily improving, with net profit margins recovering to levels between 18% and 20% in the second and third quarters of 2025 [2]. - The company is expected to achieve double-digit growth in its cardiovascular and respiratory product lines, driven by improved marketing and seasonal demand [3]. Financial Performance Summary - For the first three quarters of 2025, the company reported revenues of 5.87 billion RMB, a year-over-year decrease of 8%, but a significant increase in net profit by 80% to 1 billion RMB [1]. - The third quarter alone saw revenues of 1.83 billion RMB, with net profit exceeding 330 million RMB, marking over a 1000% increase year-over-year [1]. - The company’s gross margins for the second and third quarters of 2025 were reported at 67.4% and 62.9%, respectively, indicating strong profitability [2]. Product Line and Innovation - The company has a robust pipeline of innovative products, with several traditional Chinese medicine and chemical drug projects progressing through various stages of development [4]. - The cardiovascular segment generated over 3 billion RMB in revenue for the first three quarters of 2025, with expectations for growth in the coming years [3]. - The respiratory product line, particularly the Lianhua Qingwen, is anticipated to see increased sales as seasonal demand rises in the autumn and winter [3].