Core Viewpoint - The report from China Merchants Securities forecasts that United Pharmaceuticals (03933) will achieve revenues of 13.35 billion, 12.77 billion, and 13.93 billion yuan from 2025 to 2027, with net profits of 2.59 billion, 2.34 billion, and 2.52 billion yuan, corresponding to PE ratios of 11, 12, and 11 times, respectively, and gives a "strong buy" rating, citing the stabilization of its antibiotic business and growth in insulin and animal health sectors as key drivers [1]. Group 1: Company Overview - United Pharmaceuticals has developed a comprehensive pharmaceutical group with four major business segments: formulations, raw materials, biotechnology, and animal health, supported by nine production and R&D entities [1]. - The company is in the third phase of innovation and development, having transitioned from vertical integration in antibiotics to expanding into the endocrine field [1]. Group 2: Innovation and Pipeline - The company has entered a $2 billion exclusive licensing agreement with Novo Nordisk for UBT251, which is expected to contribute significantly to future revenues, with the GLP-1 class of drugs projected to reach a market size in the hundreds of billions [2]. - UBT251 has shown promising results in clinical trials, with a 16.6% average weight loss in the highest dosage group after 12 weeks, indicating its potential as a leading treatment in its class [2]. - The company has a diverse pipeline in autoimmune, metabolic, ophthalmology, and anti-infection areas, with UBT37034 and UBT48128 showing differentiated advantages and potential for international markets [2]. Group 3: Business Segments and Market Dynamics - The antibiotic segment is currently facing short-term pressure due to declining demand, but the competitive landscape remains stable, with United Pharmaceuticals being a leader in penicillin [3]. - The insulin segment is expected to grow, with several products in the NDA/clinical stages, indicating potential for future revenue increases [3]. - The animal health business is positioned for rapid growth, driven by both economic and companion animal segments, enhancing the company's full industry chain layout [3].