Core Viewpoint - The successful IPO of Zhonghui Biotech-B (02627) on August 11, 2025, marked a significant event in the Hong Kong stock market, with the stock price soaring by 157.98% on its first day, setting a record for the highest first-day gain of a new stock in 2025 [1] Company Overview - Zhonghui Biotech is a domestic innovative vaccine company with two core products: the quadrivalent influenza virus subunit vaccine (brand name: Huiru Kexin) and an in-development lyophilized human rabies vaccine [1][2] - The quadrivalent influenza vaccine is the first and only one approved in China for individuals aged 3 and above, showing significant improvements over traditional vaccines [2] Financial Performance - The public offering phase saw 191,000 participants with an oversubscription rate of 4007 times, freezing over HKD 210 billion, making it the "super subscription king" of the year in the biotech sector [1] - Sales revenue for Huiru Kexin is projected to reach HKD 260 million in 2024, a nearly 400% increase from HKD 52.2 million in 2023 [2] Product Pipeline - In addition to the two core products, Zhonghui Biotech has 11 other vaccines in development, including a trivalent influenza vaccine and a 23-valent pneumococcal polysaccharide vaccine, creating a diverse product pipeline [3] Market Trends - The Chinese innovative drug market is experiencing rapid growth, with the proportion of innovative drug business development (BD) transactions increasing from 10.8% in 2015 to 52.5% by August 2023 [3] - The global human vaccine market is expected to grow from USD 37.2 billion in 2019 to USD 49.8 billion in 2024, with a compound annual growth rate (CAGR) of 8.0% [5] Strategic Initiatives - Zhonghui Biotech's fundraising plan includes over 10% of funds allocated for strategic acquisitions, particularly in Southeast Asia, to enhance local production capabilities [4] - The company is also benefiting from favorable policies supporting innovative drugs, as indicated by recent meetings held by the National Medical Insurance Administration [5] Investment Appeal - The company is viewed as a defensive asset against global uncertainties, with its innovative vaccine technology positioned to thrive amid public health challenges [6] - The Chinese human vaccine market is projected to grow from RMB 53.5 billion in 2019 to RMB 96.1 billion in 2024, indicating substantial market potential [6]

Core Viewpoint - The successful IPO of Zhonghui Biotech-B (02627) on August 11, 2025, marked a significant event in the Hong Kong stock market, with the stock price soaring by 157.98% on its first day, setting a record for the highest first-day gain of a new stock in 2025 [1] Company Overview - Zhonghui Biotech is an innovative vaccine company in China, with two core products: the quadrivalent influenza virus subunit vaccine (Huiruankangxin®) and an in-development lyophilized rabies vaccine [1][3] - The company has seen a substantial increase in valuation from 746 million yuan to 4.189 billion yuan through three rounds of financing prior to its IPO [1] Product Details - Huiruankangxin® is the first and only quadrivalent influenza virus subunit vaccine approved in China, showing a nearly 400% increase in sales revenue from 52.2 million yuan in 2023 to 260 million yuan in 2024 [2] - The rabies vaccine, developed using human diploid cells, is expected to be a safer alternative to traditional Vero cell-based vaccines, with Phase I clinical trials completed and Phase III trials planned for Q3 2025 [3] Market Potential - The global human vaccine market is projected to grow from $37.2 billion in 2019 to $49.8 billion by 2024, with a compound annual growth rate (CAGR) of 8.0% [5] - The Chinese human vaccine market is expected to grow from 535 billion yuan in 2019 to 961 billion yuan by 2024, with a CAGR of 12.4% [6] Strategic Initiatives - Zhonghui Biotech's fundraising plan includes over 10% of funds allocated for strategic acquisitions, with 63.6% focused on global registration of core products [4] - The company is expanding its international presence, with plans to register products in multiple countries, including Thailand, Uruguay, and Indonesia [2][4] Industry Context - The rise of innovative drugs in China is evident, with the share of China's innovative drug business development (BD) transactions increasing from 10.8% in 2015 to over 50% in 2023 [3] - The company is positioned to benefit from favorable policies supporting innovative drugs, as indicated by recent meetings held by the National Healthcare Security Administration [5]