HANSOH PHARMACEUTICAL(3692.HK)：1H25 RESULTS BEAT;TP UP ON PROVEN BD CAPABILITY

Core Insights - Hansoh Pharma reported strong 1H25 results, with revenue and net profit increasing by 14.3% and 15.0% YoY, respectively, driven by a 24% YoY growth in core innovative drug sales and continued collaboration revenue [1][2] - Management raised its 2025 revenue guidance to high-double-digit growth, forecasting at least RMB10 billion from innovative drugs, with Ameile expected to contribute RMB6 billion [1][4] Financial Performance - 1H25 revenue reached RMB7.4 billion, while net profit was RMB3.1 billion, exceeding market expectations [2] - Innovative drug sales accounted for RMB4.5 billion, representing a 24% YoY growth and 78% of total drug sales, while generic drug sales fell 13% YoY to RMB1.3 billion [3] - Gross margin remained stable at 91.1%, and R&D expenses increased by 20% YoY to RMB1.4 billion, accounting for 19% of total revenue [3] Future Guidance - Management anticipates generic drug sales of RMB2.5 billion for 2025, gradually declining to RMB2 billion in the long term [5] - Key assets like B7H3/B7H4 ADCs and GLP-1 candidates are expected to advance in global trials in late 2025 and 2026 [1][5] Key Assets and Development - Ameile is projected to generate RMB6 billion in sales, with a peak sales target of RMB8 billion, and is undergoing pivotal trials for new indications [5] - Key timelines for other projects include Phase III trial initiation for HS-20093 and HS-20089 expected in 4Q25 and 2026, respectively [5] Valuation and Target Price - Following the results, the company adjusted drug sales forecasts for 2025-27 and incorporated an upfront payment from Regeneron of US$80 million [6] - The 12-month target price is set at HK$41.3, maintaining a BUY rating based on the potential for recurring business development revenue [6][7]