Core Viewpoint - The initiation of global clinical trials for drug 707 by Sihuan Pharmaceutical (01530) is expected to be a significant catalyst for the company's profit growth, with a slight decrease in target price from HKD 37.67 to HKD 37.58 while maintaining a "Buy" rating [1] Financial Performance - Sihuan Pharmaceutical reported a revenue of RMB 4.4 billion in the first half of the year, reflecting a year-on-year decline of 0.8%, primarily due to a slowdown in TPIAO sales, although this was partially offset by strong growth in its hair loss treatment product line [1] - The net profit attributable to shareholders increased by 24.6% to RMB 1.1 billion, driven by a 49% reduction in financial costs [1] Product Pipeline and Future Outlook - Despite existing core products facing pressure, the company anticipates launching several new drugs between 2025 and 2026, including 608 (an IL-17A inhibitor) and 613 (an IL-1β inhibitor), which are expected to drive revenue growth [1] - The report suggests that drug 707 (a PD-1/VEGF dual antibody) has the potential to become a major global product, with expectations that Pfizer will actively promote its global clinical development and combination therapy options [1]
招银国际：微降三生制药目标价至37.58港元 维持买入评级