Core Viewpoint - CICC has downgraded the net profit estimates for Lianbang Pharmaceutical (03933) for 2025 and 2026 by 8.9% and 1.1% to CNY 2.92 billion and CNY 2.62 billion respectively, due to pressure on raw material and intermediate prices [1] Group 1: Financial Performance - The company's 1H25 performance met CICC's expectations, with revenue of CNY 7.519 billion, a year-on-year increase of 4.8%, and a gross profit of CNY 3.924 billion, corresponding to a gross margin of 52.2%, up 5.6 percentage points year-on-year [2] - The pre-tax profit was CNY 2.420 billion, a year-on-year increase of 27.24%, and the net profit was CNY 1.894 billion, up 27.02% year-on-year, primarily benefiting from a one-time contribution from the UBT251 licensing fee and the volume increase of insulin series products [2] Group 2: Innovation and R&D - The company is entering a harvest period in innovation and has strategically focused on the GLP-1 sector, having reached an overseas rights licensing agreement with Novo Nordisk for UBT251 [3] - In 1H25, the company recognized licensing income of CNY 1.434 billion from UBT251, which completed its Phase II clinical enrollment for obesity indications in April 2025 and for diabetes indications in May 2025 [3] - The company has 43 human drug projects in development, including 22 first-class new drugs, and R&D expenses in 1H25 were CNY 499 million, a year-on-year increase of 11.7% [3] Group 3: Product Segments - In 1H25, the revenue from formulation products (excluding external licensing) was CNY 2.54 billion, a year-on-year increase of 6.1%, while segment profit was CNY 156 million, down 35.4% [4] - The insulin series revenue reached CNY 961 million, a year-on-year increase of 74.5%, with insulin analog sales up 90.4%, benefiting from increased domestic market share and overseas expansion [4] - The company has made progress in export business, with insulin products winning bids from the Brazilian Ministry of Health and antibiotics winning bids in the Malaysian market [4] Group 4: Raw Materials and Intermediates - In 1H25, intermediate revenue was CNY 1.011 billion, down 23.1% year-on-year, and segment profit was CNY 635 million, down 40.6% [5] - Raw material revenue was CNY 2.530 billion, a year-on-year decrease of 27.0%, with segment profit at CNY 251 million, down 52.0%, primarily due to price declines of products like 6-APA and a temporary drop in antibiotic demand [5] - The company expects the production capacity of its raw material projects in Zhuhai and Inner Mongolia to commence in October 2025 [5]
中金：维持联邦制药跑赢行业评级 目标价19港元