Investment Rating - The report initiates coverage on Grand Pharmaceutical Group (0512 HK) with a "Buy" rating [6] Core Views - Grand Pharmaceutical Group is a long-established pharmaceutical company with three major business segments: pharmaceutical technology, nuclear medicine oncology, and precision cardiovascular intervention technology, along with biotech [2] - The company achieved revenue of HKD 10 53 billion in 2023, a 10 12% YoY increase, with net profit attributable to shareholders of HKD 1 88 billion, a 9 59% YoY decline [2] - The nuclear medicine oncology segment is expected to drive rapid growth, while the cardiovascular and respiratory segments are projected to maintain stable growth [6] - Revenue is forecasted to reach HKD 12 00 billion in 2024, HKD 13 92 billion in 2025, and HKD 15 32 billion in 2026, with EPS of HKD 0 64, HKD 0 68, and HKD 0 73 respectively [6] Business Segments Nuclear Medicine Oncology - The company is actively expanding its nuclear medicine oncology pipeline, with its flagship product Y-90 microspheres (Yigantai®) showing significant efficacy in treating primary liver cancer and colorectal cancer liver metastases [3] - Colorectal cancer is the third most common cancer globally, accounting for 10% of all cancer cases, while liver cancer is highly prevalent in China, with 47% of global new cases in 2018 [3] - Yigantai® has been approved for colorectal cancer liver metastases and is expected to gain approval for primary liver cancer soon, becoming a key growth driver [3] - The company has 14 innovative nuclear medicine products in its pipeline, including 9 RDC (radiopharmaceutical drug conjugate) products, with 4 in clinical trials in China [29] Precision Cardiovascular Intervention - The company entered the cardiovascular medical device field in 2015 through acquisitions and has built a comprehensive platform covering coronary, peripheral, structural heart, and electrophysiology [4] - Key products include drug-coated balloons (DCB), Novasight Hybrid intravascular imaging system, and HeartLightX3 laser ablation platform [4] - The DCB market in China is expected to grow from RMB 4 39 billion in 2019 to RMB 8 38 billion in 2024, driven by aging population and policy support [52] - The electrophysiology device market in China is projected to reach RMB 15 7 billion by 2025, with HeartLightX3 showing promising potential [57] Traditional Business Segments - The company has a strong presence in traditional segments such as cardiovascular emergency, ophthalmology, respiratory, and biotech products, with stable market share and brand influence [5] - In ophthalmology, products like polyethylene alcohol eye drops and He Xue Ming Mu tablets have shown steady sales growth [61] - The respiratory segment includes products like Xiao Qing Zao enteric-coated soft capsules, which have maintained a strong market position [61]
首次覆盖报告：多业务齐头并进，核药引领发展