SCS(SH:601555) Ge Long Hui·2025-08-19 08:41Core Viewpoint - Gilead Sciences (1672.HK) reported a successful progress in its pipeline for the first half of 2025, leading to an increased probability of successful product launches and an upgraded target price to HKD 29.26, maintaining a "Buy" rating [1] Financial Performance - In the first half of 2025, Gilead Sciences achieved a revenue of HKD 1.08 million, primarily from R&D services; R&D expenses were HKD 146 million, a year-on-year increase of 10.9%, with effective cost control measures in place [2] - As of the end of the first half of 2025, the company had cash and cash equivalents of HKD 1.58 billion, a significant year-on-year increase of 361.9%, providing strong support for future pipeline development [2] Pipeline Progress and Catalysts - The core small molecule GLP-1 pipeline, ASC30, shows a 4-week weight loss rate of 6.5% in Phase I clinical trials in the U.S., outperforming Eli Lilly's oral GLP-1 (Orforglipron) while maintaining comparable safety, with Phase IIa trials expected to report top-line data in Q4 2025 [3] - ASC47, a new THR-β target pipeline for fat loss and muscle gain, has completed dosing in a Phase I trial in the U.S. with results expected in Q4 2025; it shows potential for synergistic effects when used with semaglutide [3] - ASC50, an oral small molecule IL-17 inhibitor targeting psoriasis, has shown promising preclinical data and began Phase I trials in the U.S. in June 2025, with top-line data expected by the end of 2025 [4] - The first-in-class oral small molecule FASN inhibitor, denifanstat, is expected to submit for market approval in China in 2026, potentially becoming a significant revenue driver for the company [4] Earnings Forecast and Valuation - Dongwu Securities has revised Gilead Sciences' revenue forecasts for 2025-2027 to HKD 0.02 billion, HKD 0.64 billion, and HKD 2.03 billion respectively, with net losses projected at HKD 4.18 billion, HKD 3.96 billion, and HKD 3.58 billion for the same period [5]