Company Strategy - Legend Biotech is considering a second listing outside the US [1] Market Trends - Investors are showing a strong appetite for drugmakers [1]

Core Viewpoint - WuXi AppTec's revenue for the first half of 2025 was 106.3 million yuan, with sales of its CAR-T drug, Regiokyuran, amounting to 81 million yuan, which is lower than the sales figures from the same period in 2024 and 2023 [1][2]. Group 1: Company Performance - WuXi AppTec's CAR-T drug sales of 81 million yuan in the first half of 2025 were below the 86.8 million yuan in 2024 and 87.7 million yuan in 2023 [2]. - Legend Biotech reported a global sales figure of 439 million USD (approximately 3.1 billion yuan) for its CAR-T drug in Q2 2025, with total sales for the first half reaching 808 million USD (approximately 5.7 billion yuan), marking a year-on-year growth of 100% [4]. - Legend Biotech's CAR-T product, Carvykti, achieved sales of 4.39 billion yuan in Q2 2025, outperforming major competitors [18]. Group 2: Market Dynamics - The Chinese CAR-T market has seven approved products, with Legend Biotech's sales being significantly higher than its competitors, indicating a strong market presence [3]. - The high cost of CAR-T treatments remains a barrier to market penetration in China, with most patients unable to afford the treatment priced over one million yuan [29]. - The lack of a mature commercialization path for CAR-T products in China is a common challenge faced by companies in this sector [7]. Group 3: Regulatory and Insurance Landscape - Companies are attempting to improve payment capabilities for CAR-T treatments in China, with some products undergoing dual-line applications for basic medical insurance and commercial insurance [31]. - WuXi AppTec's Regiokyuran is priced at 1.29 million yuan, making it one of the most expensive CAR-T products in the market [28]. - The ongoing efforts to include CAR-T products in insurance coverage highlight the industry's struggle to balance pricing and accessibility for patients [30][34]. Group 4: Future Outlook - Legend Biotech's CEO anticipates the company will achieve profitability by 2026, indicating a positive outlook for future financial performance [20]. - The industry is exploring innovative production methods to reduce costs, with WuXi AppTec beginning to source key raw materials from domestic suppliers [35]. - The emergence of in-body CAR-T cell preparation technology may offer new avenues for cost reduction and accessibility in the future [36][37].

Core Viewpoint - The CAR-T therapy market in China is facing challenges with high costs and limited market penetration, but there is potential for price reductions and increased insurance coverage in the future [2][16]. Group 1: Company Performance - WuXi AppTec reported a revenue of 106.3 million yuan in the first half of 2025, with sales of its CAR-T drug, Regiokyron, amounting to 81 million yuan [2]. - Legend Biotech's CAR-T drug achieved global sales of 439 million USD (approximately 3.1 billion yuan) in Q2 2025, with total sales for the first half reaching 808 million USD (approximately 5.7 billion yuan), marking a year-on-year growth of 100% [3][10]. - CStone Pharmaceuticals reported a revenue of approximately 51 million yuan in the first half of 2025, a year-on-year increase of about 703.8%, primarily driven by CAR-T products [6]. Group 2: Market Challenges - Legend Biotech has reportedly canceled its sales and marketing team in China, focusing instead on more profitable overseas markets due to underwhelming domestic sales [4]. - The high cost of CAR-T treatments remains a significant barrier to market penetration, with prices exceeding 1 million yuan per treatment, making it unaffordable for most patients in China [15][16]. - The lack of a clear commercial path for CAR-T products in China is a common challenge faced by companies in this sector [4]. Group 3: Pricing and Insurance - The pricing of CAR-T products varies, with WuXi AppTec's Regiokyron priced at 1.29 million yuan, while the lowest-priced product, CStone's Nakiokyron, is priced at 999,000 yuan [8][15]. - Efforts are being made to improve insurance coverage for CAR-T therapies, with several companies submitting applications for inclusion in basic medical insurance and commercial insurance directories [16]. - The development of commercial insurance in China is seen as a key factor in enhancing payment capabilities for CAR-T treatments, which could lead to price reductions in the next five years [16][17]. Group 4: Technological Innovations - Recent advancements in CAR-T technology, such as in vivo production methods, are gaining attention and may offer solutions to the high costs associated with traditional CAR-T therapies [18]. - The production cost of CAR-T therapies is significant, with estimates indicating that the material cost for each treatment is around 43,000 USD, highlighting the need for cost-effective production methods [17][18].

Company Overview - Legend Biotech Corporation is a global leader in cell therapy with over 2,800 employees, making it the largest standalone cell therapy company [3] - The company is pioneering treatments that aim to transform cancer care, particularly through its CAR-T cell therapy [3] - CARVYKTI, a one-time treatment for relapsed or refractory multiple myeloma, is developed and marketed in collaboration with Johnson & Johnson [3] Upcoming Events - Ying Huang, Ph.D., the CEO of Legend Biotech, will participate in a fireside chat at the Morgan Stanley Global Healthcare Conference on September 9, 2025, at 4:05 p.m. ET [1] - The live webcast of the event will be accessible through the Investor Relations section of Legend's website, with a replay available approximately 48 hours after the event [2]

Market Movements - US stock index futures are all up, with Dow futures rising by 0.33%, S&P 500 futures by 0.28%, and Nasdaq futures by 0.22% [1] - European indices also show positive movement, with Germany's DAX up 0.08%, UK's FTSE 100 up 0.05%, France's CAC40 up 0.25%, and the Euro Stoxx 50 up 0.30% [2][3] - WTI crude oil increased by 0.31% to $63.72 per barrel, while Brent crude oil rose by 0.19% to $67.80 per barrel [4] Federal Reserve Insights - Market is focused on Jerome Powell's upcoming speech at the Jackson Hole Economic Symposium, which is anticipated to be a pivotal moment for future Fed monetary policy [5] - According to CME FedWatch, traders are betting on a 73.5% probability of a 25 basis point rate cut at the Fed's September meeting, with at least one more cut expected this year [5] - Analysts warn that if Powell does not confirm or suggest a rate cut, it could lead to significant repricing of bond yields and risk assets [5] Company Performance - Goldman Sachs predicts Powell will not explicitly signal a rate cut in his speech, while Yardeni Research estimates the probability of a September cut at only 40% [6] - HSBC suggests that despite tariffs impacting US corporate profit margins, the rapid adoption of AI could help reduce operational costs by 1%, potentially offsetting 25% of the cost increase from tariffs [6] - UBS indicates that the effective tariff rate in the US has exceeded 18%, with expectations of a stabilization around 15% by mid-2026, suggesting that companies are beginning to pass on tariff costs to consumers [6] Individual Company News - Gold Fields (GFI.US) reported a net profit of $1.02 billion for the first half of the year, doubling from $389 million year-over-year, and announced an interim dividend of 7 Rand ($0.3948) per share [8] - Zoom (ZM.US) achieved its strongest growth in 11 quarters, with enterprise sales up 7% to $730.7 million, exceeding analyst expectations [9] - Ross Stores (ROST.US) reported sales of $5.53 billion for the quarter, a 2% increase year-over-year, and adjusted EPS of $1.56, surpassing market expectations [9] - Chinese stocks are mostly up in pre-market trading, with notable gains for Miniso (MNSO.US) up over 8%, NIO (NIO.US) up over 5%, and Pinduoduo (PDD.US) up over 4% [10]

Core Viewpoint - Legend Biotech Corporation has appointed Carlos Santos as the new Chief Financial Officer, effective immediately, succeeding Jessie Yeung who served as interim CFO since January 2025 [1][2][3] Group 1: Leadership Changes - Carlos Santos brings extensive experience in financial operations across various regions including the US, Latin America, Europe, the Middle East, and Africa [2] - Santos previously held the position of CFO for US Oncology at AstraZeneca and has a decade-long tenure there, along with roles at Alcon and Intel Corporation [3][4] - The CEO of Legend Biotech, Ying Huang, expressed confidence in Santos's financial expertise to drive the success of the company's CAR-T cell therapy franchise, CARVYKTI, and achieve profitability by 2026 [3] Group 2: Company Overview - Legend Biotech is a leading company in cell therapy with over 2,800 employees and is recognized for its innovative CAR-T cell therapy, CARVYKTI, which targets relapsed or refractory multiple myeloma [5] - The company collaborates with Johnson & Johnson for the development and marketing of CARVYKTI and aims to expand patient access and therapeutic potential [5] - Legend Biotech is focused on building a comprehensive cell therapy company and driving future innovations across its pipeline [5]

Core Insights - HHLR Advisors, a fund management platform under Hillhouse Capital, reported a total market value of $3.105 billion in its U.S. stock holdings as of the end of Q2 2025, with over 90% allocated to Chinese concept stocks, indicating a long-term bullish outlook on quality Chinese assets [1] Group 1: Holdings Overview - Eight out of the top ten holdings of HHLR are Chinese concept stocks, with Pinduoduo being the largest position, having increased by 20% year-to-date [1] - Futu Holdings has seen a remarkable year-to-date increase of 106%, reflecting strong performance among HHLR's key investments [1] - Other notable holdings include BeiGene, NetEase, Alibaba, and Legend Biotech, all of which have shown significant performance [1] Group 2: Recent Changes in Holdings - In Q2, HHLR increased its positions in Futu Holdings and Pinduoduo while partially reducing its stakes in Alibaba, Beike, and NetEase, which have experienced substantial price increases of 52% and 54% respectively year-to-date [1] - This adjustment in holdings suggests a strategy focused on locking in profits and optimizing asset allocation in a high market environment [1] Group 3: New Entrants - For the first time, Moomoo Securities entered HHLR's top ten holdings, with Hillhouse having participated in multiple financing rounds since 2021; Moomoo went public on NASDAQ in April this year, currently valued at approximately $7.5 billion [1]

Group 1 - The article promotes a weekly newsletter focused on stocks in the biotech, pharma, and healthcare industries, aimed at both novice and experienced investors [1] - The newsletter provides insights on key trends, catalysts driving valuations, product sales forecasts, and integrated financial statements for major pharmaceutical companies [1] - The author, Edmund Ingham, has over five years of experience in covering biotech, healthcare, and pharma, and has prepared detailed reports on more than 1,000 companies [1]

Investment Rating - The report maintains a "Buy" rating for Galaxy Entertainment Group with a target price of HKD 49.81, representing a potential upside of 26.61% from the current stock price of HKD 39.34 [2][10]. Core Insights - Galaxy Entertainment Group reported strong Q2 2025 results with a net revenue increase of 10.3% year-on-year and 7.5% quarter-on-quarter, reaching HKD 12.04 billion, which is 91.4% of the 2019 level [5]. - The adjusted EBITDA grew by 12.4% year-on-year and 8.3% quarter-on-quarter to HKD 3.57 billion, with an EBITDA margin of 29.6% [5]. - The company announced an interim dividend of HKD 0.7 per share, raising the payout ratio to 59%, marking it as the first in the industry to increase dividends [5]. - The introduction of smart gaming tables and the launch of the Capella Hotel and Resort are expected to enhance market share and attract high-quality customers [10]. Summary by Sections Galaxy Entertainment Group Performance - Q2 2025 net revenue was HKD 12.04 billion, a 10.3% increase year-on-year and a 7.5% increase quarter-on-quarter [5]. - VIP gaming table turnover increased by 20.8% year-on-year and 20.2% quarter-on-quarter [5]. - The adjusted EBITDA reached HKD 3.57 billion, with a year-on-year growth of 12.4% [5]. Hotel and Casino Operations - "Galaxy Macau" and the StarWorld Hotel reported net revenues of HKD 10 billion and HKD 1.17 billion, respectively, with year-on-year growth of 16% and a decrease of 11.5% [6]. - The EBITDA for "Galaxy Macau" was HKD 3.33 billion, reflecting a 19.5% year-on-year increase [6]. Future Developments - The Capella Hotel and Resort is set to officially open soon, featuring high-end amenities aimed at attracting a new customer base [7]. - The ongoing construction of the fourth phase of "Galaxy Macau" is expected to be completed by 2027, adding significant capacity and facilities [7]. Financial Projections - The report forecasts total net income for 2025 at HKD 47.2 billion, with a year-on-year growth of 8.7% [12]. - The projected EBITDA for 2025 is HKD 13.86 billion, reflecting a 13.7% increase [12]. - The expected net profit for 2025 is HKD 10.13 billion, with a year-on-year growth of 15.7% [12].

Group 1: Lexin Group (乐信集团) - The company is experiencing a continuous improvement in profitability, with a significant year-on-year net profit growth of 126% in Q2 2025, reaching 511 million yuan, and a quarter-on-quarter increase of 19% [1][2] - The improvement in profitability is primarily attributed to a decrease in provisioning expenses and an increase in revenue, with the net take rate reaching 1.92%, up 34 basis points quarter-on-quarter [2] - The company maintains a buy rating with a target price of $11.80, indicating a potential upside of 73.5% from the current price of $6.80 [1][2] Group 2: Legend Biotech (传奇生物) - The company reported adjusted earnings in Q2 2025, with Carvykti sales reaching $439 million, marking a 19% year-on-year and 136% quarter-on-quarter increase, setting a new record for CAR-T therapy sales in a single quarter [8][9] - Despite a net loss of $125 million, the company achieved adjusted net profit of $10 million after excluding non-operating items, indicating a turnaround from previous losses [8] - The target price has been raised to $74, reflecting a potential upside of 100% from the current price of $37 [8][9] Group 3: Rui Pu Lan Jun (瑞浦兰钧) - The company experienced a 25% revenue growth in the first half of 2025, with sales of lithium battery products doubling year-on-year to 32.4 GWh [10][11] - Gross margin improved significantly, rising by 5.9 percentage points to 8.5%, while net loss decreased by 85% to 65.32 million yuan [10] - The target price has been adjusted to 15.46 HKD, indicating a potential upside of 33.8% from the current price of 11.55 HKD [10][11] Group 4: Battery Industry - In July 2025, the growth rate of battery installations slowed, with a total of 55.9 GWh installed, reflecting a year-on-year increase of 34.3% but a month-on-month decrease of 4% [14][15] - Battery exports remained robust, with July exports reaching 23.2 GWh, a year-on-year increase of 35.4%, despite a month-on-month decline of 4.7% [15] - The supply-demand balance is expected to support lithium prices, especially with the suspension of operations at a key lithium mine [15]