Core Viewpoint - The China Vaccine Industry Association has called for a resistance against chaotic price competition in the vaccine market, emphasizing the need for self-regulation and quality assurance in pricing practices [1][6][10]. Group 1: Industry Competition - The vaccine market is experiencing intense competition, particularly in the HPV and influenza vaccine sectors, leading to significant price wars [1][6]. - The price of the bivalent HPV vaccine has dropped to as low as 27.5 yuan per dose, reflecting a trend of aggressive pricing strategies among manufacturers [6][9]. - The four-valent influenza vaccine prices have also seen substantial reductions, with prices falling from 128 yuan to 88 yuan per dose, a decrease of 31.25% [8]. Group 2: Financial Performance - In the first three quarters of the year, only four out of 14 major vaccine companies listed on the A-share market reported a year-on-year increase in net profit, indicating widespread financial pressure across the industry [10][11]. - WanTai Biologics reported a staggering 165.04% decline in net profit, resulting in a net loss of 173 million yuan, alongside a 23.09% drop in revenue [12][14]. - Other companies, including Kanglaosheng and Jindike, also faced losses despite revenue growth, highlighting the challenges of rising operational costs and increased R&D expenditures [11][14]. Group 3: Market Dynamics - The industry is facing a phenomenon referred to as "involution," characterized by excessive competition and product homogeneity, which is exacerbated by a growing number of companies entering the market [15][16]. - The competitive landscape is further complicated by promotional tactics and price reductions, which are compressing profit margins and leading to a normalization of price competition [15][16]. - The overall market is under pressure from fluctuating demand, vaccine hesitancy, and intensified competition, which collectively impact sales performance [15][16].

HPV疫苗价格降至一杯奶茶钱，流感疫苗甚至跌至个位数……在疫苗行业愈发"内卷"的当下，中国疫苗 行业协会发声，倡议协会会员坚决抵制无序低价竞争，严禁以低于成本的报价参与竞标。目前，中国疫 苗行业协会会员达到334家，主要疫苗厂商均涵盖在内。 疫苗行业的价格战，也使相关企业业绩出现承压，今年前三季度，A股14家疫苗企业中，有10家企业归 属净利润同比出现下滑，其中万泰生物、百克生物、智飞生物等更是由盈转亏。在业内人士看来，上述 倡议若能有效落实，有助于遏制恶性价格战，稳定市场价格环境，从而减少企业利润压力，促进资源向 研发和创新倾斜。 严禁以低于成本报价参与竞标 11月19日，中国疫苗行业协会发布《关于反对"内卷式"竞争 促进疫苗及其相关生物制品行业高质量发 展的倡议》。中国疫苗行业协会表示，该倡议旨在通过强化自律、鼓励创新，助力行业打破"内卷"，构 建健康有序的良性生态，共同开启以质量、安全、创新为核心的行业发展新篇章。 倡议提到，中国疫苗行业协会全体会员须严格遵循《中华人民共和国疫苗管理法》《中华人民共和国价 格法》，严格遵守行业自律公约，坚持公平、合法、诚实信用原则，以生产经营成本与市场供求状况为 定价基 ...

Core Viewpoint - The Chinese Vaccine Industry Association has issued an initiative to combat chaotic price competition in the vaccine industry, advocating for self-discipline and innovation to promote high-quality development in the sector [4][5]. Group 1: Industry Challenges - The vaccine industry is experiencing intense price wars, with the price of the bivalent HPV vaccine dropping to as low as 27.5 yuan per dose, and flu vaccines reaching as low as 5.5 yuan per dose [7][9]. - In the first three quarters of this year, 71.43% of A-share vaccine companies reported a decline in net profit, with notable losses from companies like Wantai Biological Pharmacy and BCG Biological [8][9]. Group 2: Association's Initiative - The initiative calls for all members of the association to adhere to the Vaccine Administration Law and the Price Law, ensuring fair and legal pricing based on production costs and market demand [4][5]. - The association emphasizes the need to resist disorderly low-price competition and prohibits bidding below cost, aiming to stabilize market prices and improve product quality [4][6]. Group 3: Long-term Outlook - If effectively implemented, the initiative could lead to a more orderly competitive landscape, enhancing the industry's sustainable development and improving the safety and efficacy of vaccine products [5][6]. - Companies are encouraged to increase R&D investment to develop differentiated products, optimize production processes, and explore international markets to mitigate risks and enhance competitiveness [10].

Core Viewpoint - The Hong Kong stock market has become a popular choice for healthcare companies to go public, with 11 out of the top 50 IPOs in 2023 being from the healthcare sector, raising approximately HKD 18.12 billion, indicating a strong interest despite cautious investor sentiment in the secondary market [1][4]. Group 1: Market Dynamics - The healthcare sector's IPO activity has been robust, but the average subscription multiple for companies, excluding a major player, is only 3.78 times, reflecting a more rational investment attitude in the secondary market [1][4]. - The domestic vaccine market is experiencing intense competition, with 19 flu vaccines already on the market and 16 more in clinical development, leading to price wars and compressed industry profits [4][7]. Group 2: Company Overview - Zhonghui Biotech, established in 2015, focuses on the research, development, and commercialization of innovative vaccines, with a pipeline of 13 products, including one commercialized vaccine [1][2]. - The company's only commercialized product, the four-valent influenza virus subunit vaccine (Hui Er Kang Xin®), has shown high efficacy rates, exceeding EU standards [5][6]. Group 3: Financial Performance - Zhonghui Biotech reported a significant revenue increase of 397.65% in 2024, with Q1 2025 revenue growing by 34.97%, indicating strong growth despite industry challenges [4][10]. - The company faces financial challenges, with a projected net loss of CNY 2.59 billion in 2024 despite achieving CNY 2.6 billion in revenue, highlighting the impact of high sales and R&D expenses [10][12]. Group 4: Competitive Position - The company's pricing strategy for its high-end vaccine remains at CNY 319 per dose, while competitors have significantly reduced their prices, indicating a potential disadvantage in a price-sensitive market [7][9]. - Zhonghui Biotech's late entry into the market with its commercial product may hinder its ability to compete effectively during peak demand seasons [9][10]. Group 5: Valuation Concerns - The company's estimated PS ratio of 16.1x is significantly higher than the industry average of 7.55x, suggesting that it may be overvalued relative to its peers [12].