Core Viewpoint - The report from CMB International expresses optimism about the potential for new indications of Hutchison China MediTech's (00013) commercialized products to expand peak sales, with expectations for operational breakeven starting in 2H25. The long-term platform value and business development potential of the company are considered significantly undervalued by the market, maintaining a buy rating [1]. Group 1: Financial Performance - The company's 1H25 performance was under pressure, with total revenue declining by 9% year-on-year, significantly impacted by competition in the Chinese market [1]. - Revenue from oncology and immunology business fell by 15%, which was below both the report's and market's expectations [1]. - The revenue from oncology products decreased by 4%, with overseas sales of fruquintinib increasing by 25%, while domestic sales dropped by 29% due to competition from other products [1]. - Sales of savolitinib and surufatinib declined by 41% and 50%, respectively, due to competitive pressures [1]. - Management has revised the full-year 2025 revenue guidance for oncology/immunology from $350-450 million to $270-350 million, primarily due to delays in business development milestone revenues and the approval timeline for sulemotinib in China [1]. Group 2: Cost Management and Future Outlook - The company has significantly narrowed its operating losses in 1H25 due to cost-cutting and efficiency improvement efforts, with expectations for operational breakeven in 2H25 [1]. - The report suggests monitoring the differentiated ATTC platform's first candidate drug HMPL-A251, which is expected to initiate Phase I studies for solid tumors in the US and China in 2H25 [2]. - HMPL-A251 targets mature therapeutic targets with high expression in tumors, showing superior anti-tumor activity compared to monoclonal antibodies combined with small molecule inhibitors, along with better safety profiles [2]. - Two additional ATTC molecules are expected to enter clinical trials in 2026, with potential business development opportunities arising from initial clinical data [2]. - Other short-term catalysts include new indication negotiations for reimbursement in 2H25 and data readouts from global Phase III studies [2].
交银国际：维持和黄医药买入评级 降目标价至37.6港元