Core Viewpoint - The company maintains rapid revenue growth, with domestic demand gradually recovering and new products developed for drug development processes opening up demand space, sustaining a buy rating [1] Investment Highlights - The company maintains a "buy" rating, adjusting the EPS forecast for 2025-2027 to 1.14/1.52/2.10 yuan (previously 0.94/1.19/1.51 yuan), assigning a 60X PE valuation for 2025, which reflects a certain discount compared to comparable companies due to stable operations and a robust growth outlook, with a target price of 68.12 yuan [2] - In the first half of 2025, the company achieved revenue of 387 million yuan (+29.38%) and a net profit attributable to shareholders of 83.8 million yuan (+47.81%), with a non-recurring net profit of 84.13 million yuan (+45.82%). In Q2 alone, revenue reached 201 million yuan (+30.95%) and net profit was 43.22 million yuan (+66.10%) [2] - Domestic revenue was 123 million yuan, a year-on-year increase of 36.65%, indicating a rapid recovery in domestic business, while overseas revenue was 258 million yuan, up 22.94%, maintaining competitive advantages [2] Profitability and Cost Control - In the first half of 2025, the company's gross margin was 90.14%, a decrease of 1.32 percentage points, while the net margin increased by 3.59 percentage points to 21.53% [3] - The company effectively controlled overall expense ratios, with sales/management/R&D/financial expense ratios at 29.69%/15.36%/23.26%/-7.20%, showing year-on-year changes of -2.60/-0.70/-2.87/-1.77 percentage points [3] R&D Investment - The company continues to increase R&D investment, expanding its R&D team to 279 personnel, with over 5,000 products sold and applied. It maintains competitiveness in recombinant proteins while developing new products for CGT and ADC drugs to adapt to new drug development rhythms [3] - In the CGT field, the company has successfully developed nearly 50 high-quality GMP-grade products, including cytokines and antibodies for cell activation; in the ADC field, it offers a range of high-quality products, including various target proteins and enzymes for linker cleavage [3]

Core Viewpoint - 康方生物科技 achieved significant milestones in 2024, including a 25% year-on-year increase in new drug sales revenue, reaching 2 billion yuan, and successfully including two core dual antibodies in the national medical insurance catalog, marking a strategic goal in domestic new drug commercialization [2][3] Commercialization Progress - The company’s dual antibodies, Cardunili (PD-1/CTLA-4) and Ivorosi (PD-1/VEGF), gained entry as star products in the national medical insurance negotiations, indicating a shift from an outpatient market focus to an inpatient market core [3][4] - To support market expansion post-insurance implementation, 康方生物 initiated a commercialization system upgrade, expanding its professional marketing team and enhancing hospital access and academic promotion capabilities [3][4] New Drug Development - 康方生物 received approvals for three new drugs and two new indications during the reporting period, with over 20 ongoing phase III clinical studies [2][5] - The international market expansion of Ivorosi is a focal point, with its international partner, Summit, advancing three international multi-center phase III clinical developments [5][6] Clinical Research and Global Strategy - The HARMONi study for Ivorosi is expected to release phase III data in mid-2025, which could lead to new drug application submissions in the US and Europe if results are positive [6] - The company is conducting a series of clinical therapy explorations covering over 40 indications, establishing a competitive barrier in the field of tumor immunotherapy [6][7] Company Achievements - 康方生物's founder and CEO highlighted the company's historical achievements in drug innovation and the approval of globally competitive products, enhancing its position in the international biopharmaceutical innovation landscape [7]