Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 37.43, representing a potential upside of 55.5% from the current price of HKD 24.08 [2][8]. Core Insights - Pfizer is rapidly advancing the global clinical development of 707/PF'4404 (PD-1/VEGF), with plans to initiate four global Phase III trials in 2026 targeting five major indications. The combination of PD-(L)1/VEGF dual antibodies is expected to become a cornerstone of next-generation cancer immunotherapy, positioning Pfizer to leverage its internal pipeline synergy and strong clinical execution capabilities [1][8]. - The company is increasing its R&D investments, with several pipelines expected to yield clinical data soon. The core business fundamentals remain robust, providing a safety margin, and the company is projected to achieve significant revenue growth driven by its innovative pipeline [8][12]. Financial Summary - For FY23A, the company reported sales revenue of RMB 7,816 million, with a year-on-year growth of 13.8%. The projected sales revenue for FY25E is RMB 17,972 million, reflecting a substantial increase of 97.3% [2][15]. - The net profit attributable to shareholders for FY23A was RMB 1,549 million, with a year-on-year decline of 19.1%. However, the forecast for FY25E shows a significant increase to RMB 9,741 million, indicating a growth of 366.0% [2][15]. - The earnings per share (EPS) for FY23A was RMB 0.64, expected to rise to RMB 3.84 in FY25E [2][15]. Market Position and Shareholder Structure - The company's market capitalization is approximately HKD 61,115.2 million, with a 52-week stock price range of HKD 35.90 to HKD 6.01 [3][4]. - Major shareholders include TMF (Cayman) Ltd. with 22.8% and Decade Sunshine with 19.6% [4]. Clinical Development and Pipeline - The report highlights the competitive landscape for PD-(L)1/VEGF therapies, with Pfizer's strategy of combining IO with ADCs as a unique advantage. The company plans to conduct multiple Phase III trials for various indications, including NSCLC and mCRC, with a focus on rapid patient recruitment [1][8]. - The ongoing clinical trials for other innovative products, such as 705 (PD-1/HER2) and 706 (PD-1/PD-L1), are also expected to contribute to the company's growth and potential licensing opportunities [8][12].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index closing at 26,766, up 0.06% for the day and up 4.43% year-to-date [1] - The US markets saw gains, with the Dow Jones up 0.64% and the S&P 500 up 0.50%, while the Nasdaq increased by 0.43% [1] - The Chinese stock market exhibited mixed results, with A-shares declining, particularly in defense, automotive, and social services sectors, while non-ferrous metals, oil, and coal sectors showed gains [3] Sector Performance - In the Hong Kong market, the Hang Seng Financial Index rose by 0.74%, while the Hang Seng Real Estate Index increased by 1.84%, indicating strong performance in these sectors [2] - Conversely, the Hang Seng Industrial Index fell by 0.44%, reflecting weaker performance in industrial stocks [2] Company Analysis - China Resources Beverage (2460 HK) is projected to see a 35.5% decline in net profit for FY2025, estimated at RMB 1.06 billion, primarily due to increased marketing expenditures and slower capacity expansion [4] - Despite the anticipated profit drop, there are positive indicators such as a new experienced chairman likely to drive significant reforms, and potential increases in dividend payouts [4] - The report maintains a "Buy" rating for China Resources Beverage, with a target price adjusted down by 8% to HKD 11.87, reflecting the earnings downgrade [4]

27 Jan 2026 CMB International Global Markets | Equity Research | Company Update CR Beverage (2460 HK) CR Beverage (2460 HK) - Leave Leave the worst behind in 2025 We forecast CR Beverage's FY25E net profit to decline 35.5% to RMB1.06bn, with a steeper drop in 2H25E due to concentrated signing of large marketing contracts and increased supply chain investments. Capacity expansion is slightly slower than market expectations, while channel reform is progressing faster. Beyond the stabilization of packaged wate ...

Report Summary 1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - The market shows mixed trends across different regions and sectors in the fixed - income market. Some bonds tightened, while others widened or had price changes due to various factors such as demand, profit - taking, and company - specific news [2]. - The analysts maintain a buy rating on BBLTB's subordinated bonds, expecting the bank to call its subordinated bonds on the first call dates due to sufficient capital buffer and past redemption records [7]. 3. Summary by Relevant Catalogs Trading Desk Comments - **Chinese IG Space**: CCAMCL/ORIEAS 2 - 5yr bonds tightened 3 - 5bps due to onshore demand, AMs/prop desks bought FRESHK/ZHOSHK which tightened 1 - 3bps, LIFUNGs gained 0.1 - 0.4pt, EHICAR 26 - 27 were 0.4pt higher [2]. - **Chinese/HK Properties**: ROADKG bonds and perps rose 0.7 - 1.5pts, SHUION 29 gained 0.3pt, FUTLAN 28/LNGFOR 27 - 32s closed 0.5 - 1.2pts higher, VDNWDL/NWDEVL complex were 0.2pt lower to 0.3pt higher, VNKRLE 27 - 29 were 0.3pt higher [2]. - **KR Space**: HYNMTR FRNs tightened 3 - 5bps as onshore/offshore buyers sought loose bonds and dealer inventory dried up [2]. - **JP Space**: NTT 35/MUFG 35s/SOBKCO 35/SMBCAC 35 tightened 1 - 4bps, NOMURA 7 Perp traded 0.1pt lower, RESLIF 6.875 Perp closed 0.1pt higher [2]. - **SE Asia Space**: OCBCSP 32/35s tightened 1 - 3bps, light selling on OCBCSP 34s, KBANK 31/UOBSP 31 - 32s/BBLTB T2s were 1bp tighter to 2bp wider, ReNew Energy complex edged 0.1 - 0.3pt higher, SMCGL Perps/INDYIJ 29s/MEDCIJ 26 - 30s were unchanged to 0.2pt higher, TOPTB 6.1 Perp lost 0.1pt [2]. - **Middle East**: BSFR 35s and long - end KSAs softened 0.1 - 0.3pt lower, SECO 29 - 36s traded active two - way and closed 1 - 2bps wider, ARAMCO 30 - 31s were 1 - 2bps wider, LGFV edged a touch tighter overall [2]. - **Morning Price Movements**: JP AT1s and insurance subs had two - way flows but stable prices, HUXJDP 26 rose 0.9pt, CRNAU 29/HYSAN 4.85 Perp were 0.6 - 0.7pt higher, LNGFOR 28/FTLNHD 27/SOFTBK 31 were 0.5 - 0.8pt lower [3]. Top Performers and Underperformers - **Top Performers**: ROADKG bonds had significant price increases, with ROADKG 6.7 03/30/28 rising 1.5 to 22.9, ROADKG 5 1/8 01/26/30 rising 1.4 to 22.8, etc [4]. - **Top Underperformers**: GARUDA 6 1/2 12/28/31 fell 1.9 to 90.0, ADSEZ 5 08/02/41 fell 1.5 to 87.3, etc [4]. Macro News Recap - Last Friday, S&P was up 0.03%, Dow was down 0.58%, and Nasdaq was up 0.28%. US Jan'26 S&P Global Services PMI was 52.5 (lower than expected), Manufacturing PMI was 51.9 (as expected). UST yield was lower, with 2/5/10/30 - year yields at 3.60%/3.84%/4.24%/4.82% [6]. Desk Analyst Comments on BBLTB - FY25 investment gains offset lower NII and net fee income. Analysts maintain a buy on BBLTB 3.466 09/23/36 and BBLTB 6.056 03/25/40, expecting first - call redemptions [7]. - FY25 results softened: operating profit before tax lowered by 1% to THB56.0bn, net interest income decreased 8% to THB123.6bn, NIM dropped to 2.8% from 3.1% in FY24, net fee income decreased 2% to THB27.2bn, total operating income rose 2% to THB178.5bn, cost - to - income ratio rose slightly to 48.4% [8][9]. - Asset quality deteriorated slightly: NPL ratio increased to 3.0% as of Dec'25 from 2.7% as of Dec'24, NPL coverage ratio decreased to 324% from 334%. However, capital adequacy is solid, with standalone/consolidated CET 1 and Tier 1 ratios increasing [10]. Offshore Asia New Issues - **Priced**: Ma'aden Sukuk Ltd issued USD1000mn 10 - yr bonds with a 5.25% coupon at T + 105, rated Baa1/ - /BBB+ [12]. - **Pipeline**: The Link Finance (Cayman) 2009 plans to issue 10 - yr USD bonds at T + 105, with an issue rating of - /A/ - [13]. News and Market Color - **Onshore Primary Issuances**: 110 credit bonds were issued last Friday with an amount of RMB95bn. Month - to - date, 1,485 credit bonds were issued with a total amount of RMB1,279bn, an 11.1% yoy decrease [17]. - **Company - Specific News**: Adani Energy Solutions plans a USD500mn bond issue, Greenko Energy raised INR48bn (cUSD524mn), Road King sold property interests, Sun Hung Kai settled a tender offer, China Vanke withdrew a REIT listing application and got a loan extension, Yuexiu Property expected FY25 profit to fall 90 - 95% yoy [17].

Market Overview - Global markets showed mixed performance, with the Hang Seng Index closing at 26,750, up 0.45% year-to-date, while the US Dow Jones fell by 0.58% [1][3] - The Chinese stock market saw gains, particularly in materials, consumer discretionary, and healthcare sectors, while energy and real estate lagged [3] Industry Insights - The Chinese pharmaceutical sector is experiencing a significant upward trend, with the MSCI China Healthcare Index rising 9.2% since early 2026, outperforming the MSCI China Index by 5.6% [4] - The trend of Chinese innovative drugs going overseas continues to gain momentum, with multiple business development (BD) transactions occurring in early 2026, indicating a strong market for overseas licensing [5] - Key transactions include the overseas rights granted by Rongchang Biopharma to AbbVie for RC148 and by Haisika for HSK39004, showcasing the clinical progress of these drugs [5] Company Analysis - China Ping An is projected to see a 12% increase in operating profit to RMB 135.9 billion in 2025, driven by improvements in life and health insurance segments [7] - The new business value (NBV) is expected to grow by 42% year-on-year to RMB 40.4 billion, with a strong performance anticipated in the first quarter of 2026, particularly in the bancassurance channel [8] - The target price for China Ping An has been raised to HKD 90, reflecting adjustments in profit and NBV growth forecasts, with the company currently trading at 0.71 times FY26E P/EV [8]

Investment Rating - The report assigns a "Buy" rating to several companies in the pharmaceutical sector, indicating a potential upside of over 15% in their stock prices over the next 12 months [29]. Core Insights - The MSCI China Healthcare Index has increased by 9.2% since the beginning of 2026, outperforming the MSCI China Index, which rose by 5.6% [1]. - The pharmaceutical industry has seen significant growth, driven by strong institutional investor interest and the ongoing trend of innovative drugs going global [1]. - The report emphasizes the importance of clinical progress and data validation for pipelines that have already gone overseas, suggesting that this trend will continue in the long term [1]. Summary by Sections Industry Overview - The report highlights a robust trend in the outbound licensing of innovative drugs, with multiple business development (BD) transactions occurring at the start of 2026, reflecting a high level of activity in the sector [4]. - Key transactions include significant upfront and milestone payments for various drugs, indicating strong market interest and potential for future growth [4]. Company Ratings and Valuations - The report provides detailed valuations for several companies, including: - **Sangfor Technologies (1530 HK)**: Market cap of $7,598.4 million, target price of $37.58, with a 54% upside potential [2]. - **Gusongtang (2273 HK)**: Market cap of $963.3 million, target price of $44.95, with a 46% upside potential [2]. - **WuXi AppTec (2268 HK)**: Market cap of $10,551.0 million, target price of $88.00, with a 28% upside potential [2]. - **China National Pharmaceutical Group (1177 HK)**: Market cap of $15,951.4 million, target price of $9.40, with a 42% upside potential [2]. Market Trends - The report notes that the competition in the PD-(L)1/VEGF space is intensifying, with several companies advancing their clinical trials and aiming for first-line indications [4]. - The report suggests that the efficiency and breadth of clinical trials, as well as the richness of combination therapies, will be critical factors in determining success in this competitive landscape [4].

Investment Rating - The report maintains a "Buy" rating for Ping An Insurance, with a target price raised to HKD 90 based on a sum-of-the-parts (SOTP) valuation [1][4]. Core Insights - The report highlights that the fourth quarter earnings may see relief amid growth stock corrections, with expectations of a 12% year-on-year increase in group OPAT for 2025, reaching RMB 136 billion, and a 5.1% increase in net profit to RMB 133 billion [1][3]. - The insurance company is projected to achieve double-digit growth in NBV (New Business Value) in 2026, driven by strong first-year premium growth and stable profit margins [2][4]. Summary by Sections Financial Performance - For FY25, the net profit is expected to be RMB 162.5 billion, with EPS projected at RMB 7.52, reflecting a 5.1% year-on-year increase [5][13]. - The report provides a detailed financial summary, indicating a steady increase in net profit and EPS over the forecast period, with net profit reaching RMB 175.7 billion by FY27 [5][15]. Valuation Metrics - The target price of HKD 90 implies a valuation of 0.9 times the FY26E price-to-earnings ratio and 1.24 times the price-to-book ratio [4][14]. - The report employs a comprehensive valuation method, indicating a fair value for various segments, including life insurance and property & casualty insurance, contributing to the overall target price [4][14]. Business Growth Drivers - The report notes that the bank's insurance channel is expected to benefit from a shift in household deposits, with a projected 18% growth in NBV for FY26 [2][4]. - The strong performance in the insurance sector is supported by robust underwriting profits and improved investment service results, particularly in the context of a recovering capital market [1][3].

Investment Rating - The report initiates coverage on 康龙化成 with a "Buy" rating and a target price of 38.08 RMB, indicating a potential upside of 21.7% from the current price of 31.30 RMB [1][3]. Core Insights - 康龙化成 is recognized as a leading integrated CXO company in China, established in 2004, providing comprehensive services throughout the drug development lifecycle. The company is expected to benefit from the growing global demand for pharmaceutical R&D outsourcing [1][7]. - The report highlights the company's strategic expansion into various sectors, including small molecule CDMO, clinical development, and large molecule & cell and gene therapy (CGT), which positions 康龙化成 as a competitive player in the global market [7]. - The company is projected to achieve revenue growth rates of 14.2%, 14.8%, and 16.3% for FY25E, FY26E, and FY27E, respectively, with adjusted net profit growth rates of 12.3%, 17.8%, and 18.7% for the same periods [7][11]. Financial Summary - For FY23A, 康龙化成 reported sales revenue of 11,538 million RMB, with a year-on-year growth of 12.4%. The adjusted net profit for the same period was 1,903 million RMB, reflecting a growth of 3.8% [2][11]. - The company’s sales revenue is expected to reach 14,022 million RMB in FY25E, with a projected growth of 14.2% year-on-year [2][11]. - The adjusted net profit is forecasted to be 1,804 million RMB in FY25E, with a year-on-year increase of 12.3% [2][11]. Shareholder Structure - The shareholder structure indicates that 19.3% of the shares are held by Hong Kong investors, while the actual controller holds 17.7% [4]. Stock Performance - The stock has shown a 1-month absolute return of 8.6% and a 6-month return of 15.1%, indicating positive market sentiment [5].

Investment Rating - The report initiates coverage on 康龙化成 (300759 CH) with a "Buy" rating and a target price of 38.08 RMB, indicating a potential upside of 21.7% from the current price of 31.30 RMB [1][3]. Core Insights - 康龙化成 is recognized as a leading integrated CXO service provider in China, benefiting from the growing global demand for pharmaceutical R&D outsourcing. The company offers end-to-end services across the entire drug development lifecycle, positioning itself to capitalize on the increasing outsourcing needs in the pharmaceutical industry [1][7]. - The report highlights the company's strategic expansion into small molecule CDMO, clinical development, and large molecule & cell and gene therapy (CGT) sectors, creating a comprehensive one-stop CXO platform that reduces operational risks and costs for clients [7]. - The company is expected to see revenue growth of 14.2% in 2025, 14.8% in 2026, and 16.3% in 2027, with adjusted net profit growth projected at 12.3%, 17.8%, and 18.7% for the same years [7][8]. Financial Summary - For FY23A, 康龙化成 reported sales revenue of 11,538 million RMB, with a year-on-year growth of 12.4%. The adjusted net profit for the same period was 1,903 million RMB, reflecting a growth of 3.8% [2][11]. - The company’s sales revenue is projected to reach 14,022 million RMB in FY25E, with a corresponding adjusted net profit of 1,804 million RMB, indicating a year-on-year increase of 12.3% [2][11]. - The adjusted earnings per share (EPS) for FY25E is estimated at 1.01 RMB, with a forward P/E ratio of 30.8 times [2][11]. Shareholder Structure - The shareholder structure indicates that 19.3% of the shares are held by Hong Kong investors, while the actual controller holds 17.7% [4]. Stock Performance - The stock has shown a 1-month absolute return of 8.6% and a 6-month return of 15.1%, outperforming the market in these periods [5].

Group 1: Market Overview - Global stock markets showed mixed performance, with the Hang Seng Index closing at 26,630, up 0.17% for the day and 3.90% year-to-date [1] - The Shanghai Composite Index rose by 0.14% to 4,123, while the Shenzhen Composite Index increased by 0.69% to 2,714, reflecting a positive trend in the Chinese market [1] - The US markets also experienced gains, with the Dow Jones up 0.63% and the S&P 500 up 0.55%, indicating a favorable environment for equities [1] Group 2: Sector Performance - In the Hong Kong market, the real estate sector led gains with a 1.62% increase, while the financial sector saw a decline of 0.37% [2] - The energy, real estate, and public utilities sectors in Hong Kong outperformed, while materials, healthcare, and information technology sectors lagged [3] - The A-share market saw significant gains in construction materials, defense, and oil & petrochemicals, while beauty care, banking, and pharmaceuticals underperformed [3] Group 3: Company Analysis - 康龙化成 (300759 CH) - 康龙化成 is recognized as a leading integrated CXO service provider in China, offering comprehensive drug development services [4] - The company is expected to benefit from the growing global demand for pharmaceutical R&D outsourcing, with a target price set at 38.08 RMB and a "buy" rating [4][8] - The company has established a one-stop CXO service platform, significantly reducing operational risks and costs for clients, which is crucial in the current biopharmaceutical landscape [4] Group 4: Business Growth and Projections - 康龙化成's laboratory services are projected to see over 15% growth in new orders in 2024, providing a solid foundation for revenue [5] - The small molecule CDMO segment is expected to grow over 35% in new orders in 2024, driven by commercialized projects [5] - The company anticipates revenue growth of 14.2% in 2025, with non-IFRS net profit expected to increase by 12.3% [8]