Investment Rating - The investment rating for the company is "Recommended" (maintained) with a current stock price of 17.94 yuan [1]. Core Views - The company's revenue for Q1-Q3 2025 reached 215.07 billion yuan, a year-on-year increase of 2.60%, while the net profit attributable to shareholders was 5.15 billion yuan, up 26.96%. This increase was primarily due to a one-time special gain from changing the accounting treatment of a joint venture to a subsidiary [3]. - Excluding one-time special gains, the net profit attributable to shareholders was 3.98 billion yuan, reflecting a year-on-year decrease of 1.85% [3]. - The innovative drug business continues to advance, with 57 new drug applications accepted for clinical trials, including 45 innovative drug pipelines [6]. - The pharmaceutical commercial segment showed steady growth, with innovative drug sales reaching 40.7 billion yuan, a year-on-year increase of over 25%, and import agency business sales of 27.6 billion yuan, up over 14% [6]. - The company adjusted its profit forecast for 2025-2027, expecting net profits of 5.195 billion yuan, 5.689 billion yuan, and 5.966 billion yuan, respectively [6]. Summary by Sections Financial Performance - Revenue for 2023 is projected at 260.30 billion yuan, with a year-on-year growth of 12.2%. For 2024, revenue is expected to be 275.25 billion yuan, growing by 5.7%, and for 2025, it is estimated at 291.77 billion yuan, with a growth of 6.0% [5]. - Net profit for 2023 is projected at 3.77 billion yuan, with a significant decline of 32.9%. However, it is expected to recover to 4.55 billion yuan in 2024, representing a growth of 20.8% [5]. - The gross margin is expected to be 12.0% in 2023, decreasing to 11.1% in 2024, and stabilizing at 11.5% from 2025 to 2027 [5]. Cash Flow and Balance Sheet - Operating cash flow for 2024 is projected at 5.11 billion yuan, increasing significantly to 10.70 billion yuan in 2025 [8]. - Total assets are expected to grow from 221.21 billion yuan in 2024 to 241.84 billion yuan by 2027 [7]. - The company’s debt ratio is projected to decrease from 62.1% in 2024 to 58.2% in 2027, indicating improved financial stability [7]. Market Position and Future Outlook - The innovative drug pipeline is expected to contribute significantly to future growth, with ongoing clinical trials for various new drugs [6]. - The company is well-positioned to maintain a steady growth trajectory in the pharmaceutical sector, supported by its commercial operations and innovative drug developments [6].

FF301 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02607 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 919,072,704 | RMB | | 1 RMB | | 919,072,704 | | 增加 / 減少 (-) | | | 0 | | | RMB | | 0 | | 本月底結存 | | | 919,072,704 | RMB | | 1 RMB | | 919,072,704 | | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 601607 | 說明 | | ...

Core Viewpoint - UBS has raised the earnings per share (EPS) forecast for Shanghai Pharmaceuticals (601607) (02607) for 2025 by 7% to reflect a one-time gain from the merger with SHPL, but has lowered the EPS forecasts for 2026 and 2027 by 11% and 10% respectively due to slowing commercial business growth, increased impairment losses, and rising minority interests [1] Financial Performance - For the first three quarters, Shanghai Pharmaceuticals reported revenue of RMB 215.1 billion, a year-on-year increase of 2.6%; net profit attributable to shareholders was RMB 5.15 billion, up 27%; recurring net profit attributable to shareholders was RMB 2.7 billion, down 26.8% [1] - Excluding one-time items, the net profit attributable to shareholders for the first three quarters was RMB 3.98 billion, a year-on-year decrease of 1.9% [1] - In the third quarter, revenue grew by 4.7%, while net profit attributable to shareholders and recurring net profit attributable to shareholders fell by 38.1% and 38.9% respectively, which was below market expectations [1] Impairment Losses - The decline in earnings performance was primarily driven by asset and credit impairment losses in the third quarter, which were RMB 379 million and RMB 201 million respectively, compared to RMB 28 million and RMB 13.9 million in the same period last year [1] Strategic Focus - Management indicated that for the remainder of 2025, the company will continue to focus on the transformation of its industrial and commercial segments: the former will emphasize innovative drugs and traditional Chinese medicine, while the latter will concentrate on Contract Sales Organization (CSO) and innovative drug services [1] - The company expects that key traditional Chinese medicine products and the merger with Shanghai Henlius Biotech (SHPL) will drive positive growth in industrial revenue for 2025, with the commercial segment's growth rate expected to continue to outpace the industry [1]

Core Viewpoint - UBS has raised the 2025 earnings per share forecast for Shanghai Pharmaceuticals (02607) by 7% to reflect a one-time gain from the merger with SHPL, but has lowered the 2026/27 earnings per share forecasts by 11% and 10% due to slowing business growth, increased impairment losses, and rising minority interests [1] Financial Performance - Shanghai Pharmaceuticals reported a total revenue of 215.1 billion RMB for the first three quarters, representing a year-on-year growth of 2.6% [1] - The net profit attributable to shareholders was 5.15 billion RMB, showing a year-on-year increase of 27% [1] - The recurring net profit attributable to shareholders was 2.7 billion RMB, reflecting a year-on-year decline of 26.8% [1] - Excluding one-time items, the net profit attributable to shareholders for the first three quarters was 3.98 billion RMB, down 1.9% year-on-year [1] - In the third quarter, revenue grew by 4.7%, while net profit attributable to shareholders and recurring net profit decreased by 38.1% and 38.9%, respectively [1] Impairment Losses - The earnings performance was primarily affected by asset and credit impairment losses, which were 379 million RMB and 201 million RMB in the third quarter, compared to 28 million RMB and 13.9 million RMB in the same period last year [1] Strategic Focus - Management indicated that for the remainder of 2025, the company will continue to focus on the transformation of its industrial and commercial segments, with an emphasis on innovative drugs and traditional Chinese medicine in the industrial sector, and on CSO and innovative drug services in the commercial sector [1] - The company expects that key traditional Chinese medicine products and the merger with Shanghai Huan Pharmaceutical (SHPL) will drive positive growth in industrial revenue for 2025, while the commercial segment is anticipated to continue outpacing industry growth [1]

Core Viewpoint - UBS report indicates that Shanghai Pharmaceuticals' revenue for the first three quarters reached 215.1 billion yuan, a year-on-year increase of 2.6%, while net profit attributable to shareholders was 5.15 billion yuan, up 27% year-on-year. However, recurring net profit attributable to shareholders decreased by 26.8% to 2.7 billion yuan, with Q3 revenue growth at 4.7% and net profit and recurring net profit down by 38.1% and 38.9% respectively, primarily due to asset/credit impairment losses, which the bank believes did not meet market expectations [1] Group 1 - Shanghai Pharmaceuticals' revenue for the first three quarters was 215.1 billion yuan, reflecting a year-on-year growth of 2.6% [1] - The net profit attributable to shareholders for the same period was 5.15 billion yuan, representing a year-on-year increase of 27% [1] - Recurring net profit attributable to shareholders decreased by 26.8% to 2.7 billion yuan [1] Group 2 - In Q3, revenue grew by 4.7%, but net profit and recurring net profit fell by 38.1% and 38.9% respectively [1] - The decline in profits was mainly attributed to asset/credit impairment losses [1] - UBS believes the performance did not meet market expectations [1] Group 3 - Management stated that in the remaining time of 2025, the focus will be on the transformation of the industrial and commercial sectors, with the former emphasizing innovative drugs and traditional Chinese medicine, and the latter concentrating on CSO and innovative drug services [1] - UBS expects key traditional Chinese medicine products and the merger with Shanghai Henlius Pharmaceuticals (SHPL) to drive positive revenue growth in the industrial sector by 2025, while the commercial sector's growth rate is expected to continue to outpace the industry [1] Group 4 - UBS raised the earnings per share forecast for Shanghai Pharmaceuticals for 2025 by 7% to reflect one-time gains from the merger with SHPL [1] - However, earnings per share forecasts for 2026 and 2027 were lowered by 11% and 10% respectively, considering the slowdown in commercial business growth, increased impairment losses, and rising minority interests [1] - The target price for H-shares was adjusted from 14.5 HKD to 15 HKD, maintaining a "Buy" rating [1]

Core Insights - Shanghai Pharmaceuticals (601607.SH) reported a total revenue of 215.072 billion yuan for Q3 2025, ranking first among disclosed peers, with a year-on-year increase of 2.60% [1] - The net profit attributable to shareholders reached 5.147 billion yuan, also ranking first among peers, reflecting a year-on-year increase of 26.96% [1] - The company achieved a net cash inflow from operating activities of 2.350 billion yuan, ranking second among peers [1] Financial Performance - The latest debt-to-asset ratio is 62.14%, a decrease of 0.53 percentage points from the previous quarter and 0.69 percentage points from the same period last year [3] - The gross profit margin stands at 10.42% [3] - The return on equity (ROE) is 6.79%, ranking 10th among peers, with an increase of 1.07 percentage points year-on-year [3] - The diluted earnings per share (EPS) is 1.39 yuan, ranking 4th among peers, with a year-on-year increase of 27.52% [3] - The total asset turnover ratio is 0.94 times, ranking 11th among peers [3] - The inventory turnover ratio is 4.77 times, ranking 14th among peers [3] Shareholder Structure - The number of shareholders is 92,900, with the top ten shareholders holding 3.283 billion shares, accounting for 88.52% of the total share capital [3] - The largest shareholder is HKSCC NOMINEES LIMITED, holding 2.471 billion shares [3] - Other significant shareholders include Shanghai Pharmaceuticals (Group) Co., Ltd. and Yunnan Baiyao Group Co., Ltd., holding 1.930 billion and 1.790 billion shares respectively [3]

Core Viewpoint - Shanghai Pharmaceuticals (601607) experienced a decline of over 5%, with a current drop of 5.11%, trading at HKD 11.71 and a transaction volume of HKD 109 million [1] Financial Performance - For the first nine months of 2025, the company reported a revenue of CNY 215.07 billion, reflecting a year-on-year growth of 2.60% [1] - The net profit attributable to shareholders for the same period was CNY 5.15 billion, showing a significant increase of 26.96% year-on-year [1] - In the third quarter alone, the company achieved a revenue of CNY 73.48 billion, which is a year-on-year increase of 4.65% [1] - However, the net profit attributable to shareholders in the third quarter was CNY 688 million, representing a year-on-year decline of 38.13%, primarily due to an increase in asset impairment provisions during the quarter [1]

Core Viewpoint - Shanghai Pharmaceuticals (02607) experienced a decline of over 5%, with a current drop of 5.11%, trading at HKD 11.71, with a transaction volume of HKD 1.09 billion [1] Financial Performance Summary - For the first nine months of 2025, the company reported a revenue of RMB 215.07 billion, reflecting a year-on-year growth of 2.60% [1] - The net profit attributable to shareholders for the same period was RMB 5.15 billion, showing a significant increase of 26.96% year-on-year [1] - In the third quarter alone, the company achieved a revenue of RMB 73.48 billion, which is a year-on-year increase of 4.65% [1] - However, the net profit attributable to shareholders in the third quarter was RMB 688 million, representing a year-on-year decline of 38.13%, primarily due to an increase in asset impairment provisions during the quarter [1]

Core Insights - Shanghai Pharmaceuticals reported a revenue of 215.07 billion yuan for the first three quarters of 2025, marking a year-on-year growth of 2.60% [1] - The net profit attributable to shareholders reached 5.15 billion yuan, reflecting a significant increase of 26.96% year-on-year [1] - The company is focusing on innovation, with a total of 57 new drug pipelines, including 45 innovative drug pipelines [2] Financial Performance - Revenue breakdown: Pharmaceutical manufacturing generated 18.16 billion yuan, while pharmaceutical commerce contributed 196.91 billion yuan [1] - Profit contributions: The industrial segment contributed 1.67 billion yuan, the commercial segment contributed 2.65 billion yuan, and associated companies contributed 0.32 billion yuan [1] - Operating cash flow showed a net inflow of 2.35 billion yuan [1] Product and Market Development - Innovative drug sales reached 40.7 billion yuan, with a growth rate exceeding 25% [1] - Import agency business generated 27.6 billion yuan in sales, growing over 14% [1] - The health equipment segment achieved sales of 33.99 billion yuan, with a growth of over 4% [1] Research and Development - The company has submitted clinical trial applications for new drugs, including BCD-085 for ankylosing spondylitis and a traditional Chinese medicine for cervical spondylotic myelopathy [2] - CAR-T therapy B019 is in clinical trials for pediatric acute lymphoblastic leukemia and adult lymphoma [2] International Expansion - The company successfully exported traditional Chinese medicine products to Canada, with Dan Ning Pian being the first Chinese compound preparation to enter the Canadian market under a Western medicine indication [2] Future Outlook - Shanghai Pharmaceuticals aims to lead through innovation and explore sustainable development models to support the "Healthy China" strategy while creating long-term value for shareholders, patients, and society [2]

Core Viewpoint - Shanghai Pharmaceuticals has demonstrated resilience in its financial performance, achieving a net profit increase driven by accounting changes, while also focusing on innovative drug development and expanding its market presence in traditional Chinese medicine [3][4][11]. Financial Performance - For the first nine months of 2025, the company reported a total revenue of CNY 215.07 billion, a year-on-year increase of 2.60% [3]. - The net profit attributable to shareholders reached CNY 5.15 billion, reflecting a significant year-on-year growth of 26.96%, primarily due to a one-time special gain from accounting changes [3]. - Excluding one-time items, the adjusted net profit was CNY 3.98 billion, showing a slight decline of 1.85% year-on-year [3][4]. - The operating cash flow for the period was CNY 2.35 billion, indicating sustained high-quality development [4]. Business Highlights - The company ranked among the top ten in the "2024 Annual Top 100 Pharmaceutical Enterprises in China" and improved its MSCI ESG rating to AA [3]. - Research and development investments totaled CNY 1.73 billion, accounting for 9.52% of pharmaceutical industrial sales revenue [4]. - The company has 57 new drug candidates in clinical trials, including 45 innovative drugs [4]. Drug Development - The BCD-085 project, an innovative monoclonal antibody targeting IL-17, has submitted a new drug application for ankylosing spondylitis [5]. - The company is advancing the clinical trials for its traditional Chinese medicine, Shenqi Shiru Wan, aimed at treating cervical spondylotic myelopathy [5]. - The B019 project, a CAR-T cell therapy targeting CD19 and CD22, is in the I phase of clinical trials for acute lymphoblastic leukemia and lymphoma [6]. Traditional Chinese Medicine Development - The company is enhancing its core competitiveness through the secondary development of major traditional Chinese medicine products [7]. - Significant progress has been made in clinical trials for products like Weifuchun and Daning Pian, with expert consensus published for their clinical applications [8][9]. International Expansion - The company has successfully exported its products, including Zhenqi Pian and Daning Pian, to Canada, marking a significant step in the internationalization of traditional Chinese medicine [10]. Social Responsibility - Shanghai Pharmaceuticals is committed to rare disease treatment, establishing a collaborative ecosystem to enhance the accessibility of rare disease medications [11]. - The company has 51 products in the rare disease treatment pipeline, covering 67 rare disease conditions [11]. Commercial Growth - The pharmaceutical commercial business continues to show resilience, with innovative drug sales reaching CNY 40.7 billion, a growth of over 25% [12][13]. - The import agency business achieved sales of CNY 27.6 billion, growing by over 14% [14]. - The medical device health business reported sales of CNY 33.99 billion, with a growth of over 4% [14].