Investment Rating - The report assigns a rating of "Accumulate" to the company, which has been downgraded from a previous rating [1]. Core Views - The company's performance in the first half of 2025 was slightly below expectations, but a turnaround is anticipated in the second half of the year [1]. - The total revenue for H1 2025 was reported at $280 million, reflecting a year-on-year decline of 9.2% [7]. - The company has adjusted its revenue guidance for the full year 2025 to between $270 million and $350 million for its oncology/immunology segment [7]. Financial Summary - Total revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are $838 million, $630.2 million, $560 million, $635.91 million, and $711.90 million respectively, with year-on-year changes of 96.52%, -24.80%, -11.14%, 13.55%, and 11.95% [1]. - The net profit attributable to the parent company is forecasted to be $100.78 million, $37.73 million, $413.55 million, $14.50 million, and $62.82 million for the same years, with year-on-year changes of 127.93%, -62.56%, 996.09%, -96.49%, and 333.23% [1]. - The latest diluted EPS is projected to be $0.12, $0.04, $0.47, $0.02, and $0.07 for the years 2023A to 2027E [1]. - The P/E ratios for the years 2023A, 2024A, 2025E, 2026E, and 2027E are 26.55, 70.92, 6.47, 184.55, and 42.60 respectively [1]. Key Catalysts - The report highlights several important catalysts for the company, including the potential participation of the drug "Sewotini" in the national medical insurance negotiations by the end of this year [7]. - The global Phase III study for "Sewotini" is expected to read out data in the first half of 2026, with plans to submit for FDA approval [7]. - The company is also working on new drug candidates through its innovative antibody-drug conjugate (ATTC) platform, with plans to enter clinical development by the end of 2025 [7].

Core Viewpoint - Daiwa has downgraded the revenue forecast for Hutchison China MediTech (00013) for the years 2025 to 2027 by 16% to 29% due to lowered domestic drug sales expectations [1] Revenue Forecast - The new projections for total drug sales are expected to grow by 6%, 21%, and 28% for the years 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are $433 million, $30 million, and $40 million for the years 2025, 2026, and 2027 respectively [1] Rating and Target Price - Daiwa maintains a "Buy" rating for Hutchison China MediTech, with a target price reduced from HKD 33 to HKD 30 [1] Sales Performance - The company's product sales in the first half of the year decreased by 4% year-on-year to $234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Drug Development Progress - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] Positive Developments - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be presented at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Profit Performance - The company reported a net profit of $455 million in the first half of the year, compared to $26 million in the same period last year, mainly due to the sale of part of its non-core joint venture equity, generating $416 million in revenue [1]

Core Viewpoint - Daiwa has downgraded the revenue forecast for Hutchison China MediTech (00013) for the years 2025 to 2027 by 16% to 29% due to lowered domestic drug sales expectations, while maintaining a "Buy" rating and reducing the target price from HKD 33 to HKD 30 [1] Revenue Forecast - The new projections for total drug sales are expected to grow by 6%, 21%, and 28% for the years 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are projected to be USD 433 million, USD 30 million, and USD 40 million for the years 2025, 2026, and 2027 respectively [1] Sales Performance - In the first half of the year, Hutchison China MediTech's product sales decreased by 4% year-on-year to USD 234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Product Development - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] Positive Developments - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be announced at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Financial Performance - The net profit for the first half of this year reached USD 455 million, compared to USD 26 million in the same period last year, primarily due to the sale of part of a non-core joint venture, generating USD 416 million in revenue [1]

Core Viewpoint - The report from CMB International maintains a "Buy" rating for Hutchison China MediTech (00013), highlighting the differentiated ATTC platform while lowering sales forecasts for the company's three major commercial products and adjusting the target price to HKD 37.6 [1] Group 1: Financial Performance - The company's revenue for the first half of the year decreased by 9% year-on-year, with oncology/immunology revenue dropping by 15%, falling short of both the bank's and market expectations [1] - Management has revised the full-year 2025 guidance for oncology/immunology revenue from USD 350 million to USD 450 million down to USD 270 million to USD 350 million [1] - The company significantly narrowed its operating losses in the first half and is expected to achieve operational breakeven starting in the second half of the year [1] Group 2: Product Development - The first candidate drug from the differentiated ATTC platform, HMPL-A251, is expected to initiate Phase I studies for solid tumors in China and the U.S. in the second half of the year [1] - Two additional ATTC molecules are anticipated to enter clinical trials by 2026, presenting potential business development opportunities [1]

Core Viewpoint - The report from CMB International maintains a "Buy" rating for Hutchison China MediTech (00013), highlighting the differentiated ATTC platform while lowering sales forecasts for the company's three major commercial products and adjusting the target price to HKD 37.6 [1] Group 1: Financial Performance - The company's revenue for the first half of the year decreased by 9% year-on-year, with oncology/immunology revenue dropping by 15%, falling short of both the bank's and market expectations [1] - Management has revised the full-year 2025 revenue guidance for oncology/immunology from USD 350 million to USD 450 million down to USD 270 million to USD 350 million [1] - The company has significantly narrowed its operating loss in the first half and is expected to achieve operational breakeven starting in the second half of the year [1] Group 2: Product Development - The first candidate drug HMPL-A251 from the differentiated ATTC platform is expected to initiate Phase I studies for solid tumors in China and the U.S. in the second half of the year [1] - Two additional ATTC molecules are anticipated to enter clinical trials by 2026, presenting potential business development opportunities [1]

Core Viewpoint - The report from CMB International indicates that Hutchison China MediTech's revenue from oncology and immunology products decreased by 15% year-on-year to $144 million, achieving only 36% of the annual forecast due to a decline in domestic sales of core products [1] Group 1: Financial Performance - Revenue from oncology and immunology products fell to $144 million, a 15% decrease compared to the previous year [1] - The company has revised its full-year revenue target for oncology and immunology products from $350 million to $450 million down to $270 million to $350 million [1] Group 2: Management Outlook - Management remains optimistic for the second half of the year, citing the launch of fruquintinib for endometrial cancer and the approval of savolitinib for MET+ EGFRm non-small cell lung cancer as key drivers [1] - The sales team restructuring has been completed, and management noted that sales hit a bottom in the first quarter and began to recover in the second quarter [1] Group 3: Analyst Ratings and Price Target - CMB International maintains a "Buy" rating on the stock despite the underwhelming first-half performance and lowered guidance [1] - The target price has been adjusted from HKD 34.03 to HKD 31.39 [1]

Core Viewpoint - Daiwa's research report indicates that Hutchison China MediTech's product sales in the first half of the year decreased by 4% year-on-year to $234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Group 1: Sales Performance - The company's product sales for the first half of the year were $234 million, reflecting a 4% year-on-year decline [1] - The decline in sales is attributed to competitive risks, team restructuring, and the impact of industry anti-corruption measures [1] Group 2: Product Development and Pipeline - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be presented at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Group 3: Financial Forecasts - Based on the downward adjustment of domestic drug sales expectations, the revenue forecasts for 2025 to 2027 have been reduced by 16% to 29% [1] - The revised projections for total drug sales are expected to grow by 6%, 21%, and 28% in 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are $433 million, $30 million, and $40 million for 2025, 2026, and 2027 respectively [1] Group 4: Rating and Target Price - The company maintains a "Buy" rating, with the target price adjusted from HKD 33 to HKD 30 [1]

Core Viewpoint - The report from CMB International indicates that Hutchison China MediTech (Chi-Med) faced significant pressure in the first half of the year, with total revenue declining by 9% year-on-year, and revenue from oncology/immunology business dropping by 15%, falling short of expectations [1] Group 1: Financial Performance - Total revenue for the first half decreased by 9% year-on-year [1] - Revenue from oncology/immunology business declined by 15%, significantly impacted by competition in the mainland market [1] - Management has revised the 2025 full-year revenue guidance for oncology/immunology from USD 350-450 million down to USD 270-350 million [1] Group 2: Operational Outlook - The company has significantly narrowed its operating loss in the first half and is expected to achieve operational breakeven starting in the second half of the year [1] - CMB International maintains a "Buy" rating for Chi-Med, while lowering the target price to HKD 37.6 [1] Group 3: Future Prospects - Sales forecasts for the company's three major commercialized products have been reduced, with revenue projections for 2025 to 2027 lowered by 11-14% [1] - The first candidate drug from the differentiated ATTC platform, HMPL-A251, is expected to initiate Phase I studies for solid tumors in China and the U.S. in the second half of the year, with two additional ATTC molecules entering clinical trials by 2026 [1] - Potential business development opportunities are anticipated [1]

Core Viewpoint - HCM's financial performance shows a significant decline in revenue and net profit, indicating potential challenges ahead for the company [1][2]. Financial Performance - As of December 31, 2024, HCM reported total revenue of $630 million, a decrease of 24.8% year-over-year [1]. - The company's net profit attributable to shareholders was $37.73 million, reflecting a year-over-year decline of 62.56% [1]. Company Overview - HCM is recognized as one of China's first innovative pharmaceutical R&D companies focused on the global market [2]. - Over the past 20 years, the company has developed a comprehensive integrated R&D innovation platform with world-class discovery and development capabilities [2]. - HCM has successfully launched three self-discovered anti-tumor candidate drugs in China, with the first drug also approved in the United States [2]. - The company has established a profitable commercial platform in China for the production, marketing, and distribution of its innovative oncology drugs, prescription drugs, and consumer health products [2]. - HCM is listed on the Nasdaq Global Select Market, Hong Kong Stock Exchange, and AIM market of the London Stock Exchange [2].

Investment Rating - The report maintains a "Buy" rating for the company, with target prices adjusted to $18 for US shares and HK$28 for Hong Kong shares, reflecting a potential upside of 10% and 19% respectively [8][20]. Core Insights - The company's revenue from three core products significantly underperformed expectations in the first half of 2025, primarily due to intensified competition in the Chinese market. Consequently, the annual revenue guidance for the oncology segment has been revised downward [1][5]. - The report highlights that the overall oncology revenue for 1H25 was $143 million, down 14.9% year-over-year and 26.3% quarter-over-quarter, which was below both the report's and market expectations [5][8]. - The company is expected to achieve a revenue range of $127 million to $207 million in the second half of 2025, with management expressing confidence in potential sales growth due to new approvals and market penetration [5][8]. Financial Performance Summary - The company reported a net profit of $455 million in 1H25, which was slightly better than expectations, primarily due to cost savings in R&D and administrative expenses [5][8]. - Revenue projections for 2025, 2026, and 2027 have been adjusted to $575 million, $657 million, and $794 million respectively, reflecting a year-over-year decline of 8.8% in 2025, followed by growth in subsequent years [9][11]. - The report indicates that the company is considering introducing external oncology assets to enhance its pipeline, leveraging its strong cash reserves [7][8]. Market Expectations - The report outlines optimistic and pessimistic scenarios for the company's future performance, with target prices of $25 and $10 under different market conditions [24][30]. - The potential catalysts for the next 12 months include new drug approvals and submissions, which could significantly impact revenue growth [7][8].