Core Viewpoint - Changchun High-tech's subsidiary, Gensci Pharmaceutical, has two products, Jinsai Zeng and Meishiya, newly included in the National Medical Insurance Directory for 2025, indicating recognition of their clinical value and innovation by the National Healthcare Security Administration [1][2] Group 1: Product Information - Jinsai Zeng, a long-acting growth hormone, is the only product in China with multiple approved indications beyond pediatric growth hormone deficiency, supported by over 150,000 real-world data cases demonstrating long-term efficacy and safety [1] - Meishiya, developed by Bosheng Pharmaceutical, addresses clinical issues for patients with cachexia and has received direct recommendations in clinical guidelines, showcasing its innovative nano-technology [2] Group 2: Financial and Operational Impact - The inclusion of these products in the National Medical Insurance Directory is expected to enhance market promotion and sales scale, although the exact impact on the company's financial performance is currently unquantifiable [2] - Changchun High-tech's R&D expenses increased by 22.96% year-on-year to 1.733 billion yuan, reflecting the company's commitment to innovation and its transition towards becoming a global pharmaceutical leader [3]

Core Viewpoint - The company is expected to see performance growth driven by authorized income and new product varieties, showcasing its R&D capabilities through eight major platforms [1]. Group 1: Financial Performance - In Q1 2025, the company reported revenue of 7.015 billion yuan, a year-on-year decrease of 21.9%, and a net profit attributable to shareholders of 1.495 billion yuan, down 8.3% year-on-year [1]. - The revenue from the traditional medicine business decreased by 27.3% year-on-year, but new authorized income reached 718 million yuan, significantly alleviating the pressure from centralized procurement and medical insurance policies [1]. Group 2: R&D and Product Pipeline - The company has ten ADC pipelines in clinical stages, with key products SYS6010 (EGFR ADC) showing strong potential for authorization [1]. - SYS6010 started its first Phase III clinical trial in March 2025, targeting EGFR mutation-positive locally advanced or metastatic NSCLC patients who have failed EGFR-TKI treatment [1]. - SYS6010 has received three FDA Fast Track Designations (FTD) for various indications, including metastatic non-small cell lung cancer [1]. Group 3: Expansion into Chronic Disease Management - The company is expanding into chronic disease management, focusing on cardiovascular and endocrine metabolic fields [2]. - The GLP-1 series products, including the new drug TG103, are expected to benefit patients with diabetes and obesity, with clinical trials for both conditions expected to lead to market applications in 2025 and 2026 [2]. - Small RNA drugs such as PCSK9 siRNA, AGT siRNA, and Lp(a) siRNA have entered clinical stages, with early data showing potential in cholesterol reduction and hypertension treatment [2]. Group 4: Profit Forecast and Valuation - The company is positioned as a leading domestic innovative pharmaceutical enterprise, with its eight innovation platforms expected to yield significant value [2]. - Projected revenues for 2025-2027 are 29.794 billion yuan, 30.455 billion yuan, and 31.585 billion yuan, with net profits of 5.575 billion yuan, 5.930 billion yuan, and 6.198 billion yuan respectively [2]. - Based on a 35x PE ratio, the estimated valuation is 195.1 billion yuan, with a target price of 16.94 yuan, equivalent to 18.63 HKD, initiating coverage with a "buy" rating [2].