Core Viewpoint - The report from China Galaxy Securities highlights the strong performance and growth potential of Fuhong Hanlin, a leading player in the biosimilar drug market in China, with a recommendation for a "buy" rating [1] Group 1: Business Performance - In 2023, the company achieved profitability with a projected revenue of 5.724 billion yuan in 2024, representing a 6% year-on-year growth, and a net profit of 815 million yuan, up 50% year-on-year [1] - The company is expected to enter a high-growth phase in overseas business by 2025, with overseas product profits projected to grow over 200% in the first half of 2025 [1] Group 2: Product Pipeline and R&D - HLX43, a potential BICPD-L1ADC, is under clinical development for multiple indications including lung cancer, with significant efficacy results reported [2] - HLX22, in combination with trastuzumab, shows improved efficacy and safety for HER2-positive gastric cancer, with ongoing global Phase III trials [2] - The company is leading in the ES-NCLC segment with its differentiated strategy, achieving major clinical endpoints in perioperative gastric cancer [2] Group 3: Market Strategy and Valuation - The company has expanded its global market coverage, with its core biosimilar products driving profitability [3] - A proposal for full circulation of H-shares is expected to enhance liquidity, as currently, only 30.07% of shares are tradable in Hong Kong [3] - The projected net profits for 2025-2027 are estimated at 823 million, 744 million, and 1.129 billion yuan, respectively, with corresponding PE ratios of 39, 43, and 28 [3]