Deluxe Family(SH:600503) Xin Lang Cai Jing·2025-08-18 08:20Core Viewpoint - Huali Family (600503.SH) is making a strategic move into the innovative pharmaceutical sector by investing up to 300 million yuan to acquire 5% to 8.09% of Shanghai Haihe Pharmaceutical Research and Development Co., Ltd, reflecting its commitment to diversify and optimize its business structure amid challenges in the real estate market [1][5]. Group 1: Company Overview - Huali Family's main business is real estate development, which has faced performance fluctuations due to the cyclical nature of the industry, leading to a projected loss in 2024 [1]. - The company has previously explored other emerging industries such as robotics and graphene, but with limited success [1]. - The investment in Haihe Pharmaceutical is seen as a significant attempt to enter a new field, supported by the long-term trust established through the controlling shareholder, Nanjing Group [1]. Group 2: Haihe Pharmaceutical's Position - Haihe Pharmaceutical specializes in innovative drugs for oncology, with a robust pipeline of over ten research projects, including three already on the market [2]. - The company’s revenue from its existing products is projected to reach 310 million yuan in 2024, with significant market achievements including the first domestic approval of a self-developed innovative drug in Japan [2]. - Haihe has five additional products in clinical research, with potential for Best-in-class or First-in-class status across various cancer and rare disease indications [2]. Group 3: Market Context and Financials - The innovative drug sector in China is experiencing favorable policies and a growing market, with 43 new drugs approved in the first half of 2025, a 59% increase year-on-year [3]. - Haihe Pharmaceutical's revenue is expected to accelerate, with 2024 revenue projected at 323 million yuan and a net loss of 209 million yuan, indicating a trend towards profitability as commercialization progresses [3]. - The valuation of Haihe Pharmaceutical at 4.75 yuan per share suggests a market capitalization of 3.411 billion yuan, with a price-to-sales ratio of around 10, significantly lower than the average of 36.33 for A-share innovative drug companies [4]. Group 4: Strategic Implications - The collaboration between Huali Family and Haihe Pharmaceutical is positioned as a strategic financial investment that could yield long-term value for Huali, leveraging Haihe's R&D capabilities and market potential [5]. - The partnership is expected to create a dual-driven development model combining real estate and innovative pharmaceuticals, enhancing Huali's growth prospects [4][5].