Company Background - Hualing Pharmaceutical has been focused on developing glucose kinase activators (GKA) since 2003, with its first product, Daglitin, approved in 2022, marking the first GKA drug to be approved globally after decades of research failures [1][2] - The company initiated its Daglitin research project in 2012, achieving successful Phase II and Phase III clinical trials by 2020, leading to its market approval in 2022 [1] Sales Growth and Commercialization - After 2025, the company will take over the commercialization of Huadongning from Bayer, leading to rapid sales growth [2] - In the first half of 2025, the company reported revenue of 217 million yuan, a year-on-year increase of 110.17%, and received a one-time deferred income from Bayer of 1.244 billion yuan, resulting in a pre-tax profit of 1.184 billion yuan [2] Second-Generation GKA Development - The company is developing a second-generation GKA using sustained-release technology to extend the drug's action time in the body [3] - A clinical research application for the second-generation GKA has been submitted to the FDA and accepted, with early clinical data indicating that HM-002-1005 can quickly convert to Daglitin in the body, enhancing patient compliance [3] Profit Forecast - The company is considered a rare innovative drug stock in the Hong Kong market, with a strong sales team and a gradually forming pipeline of innovative drug products [4] - Revenue projections for 2025-2027 are 543 million yuan, 862 million yuan, and 1.142 billion yuan, respectively, with net profits of 1.113 billion yuan, 77 million yuan, and 114 million yuan [4] - The company is valued at 8.586 billion HKD for 2025, with a "buy" rating recommended [4]