Group 1 - The company achieved revenue of $278 million in the first half of 2025, with oncology business revenue of $144 million, including $99 million from oncology products and $44 million from upfront payments, milestone payments, R&D investments, and other income [1] - The latest oncology business guidance for 2025 is revised to $270-350 million, down from the previous $350-450 million, primarily due to delayed milestone income from partners until 2026 and beyond, and the new drug application approval for Solipnib in China expected to be completed after 2025 [1] - Domestic competition has led to a decline in sales, while the expansion of product indications is expected to drive performance growth [1] Group 2 - The new generation ATTC technology platform has the potential to create a rich pipeline of candidate drugs covering a wide range of oncology indications, including precision therapies for specific disease subtypes [2] - The company plans to announce preclinical data at academic conferences this year, with multiple successful developments of ATTC molecules expected to bring collaboration and licensing opportunities in the future [2] - The company maintains a "recommended" rating, as core products continue to expand indications, which is expected to drive performance growth, and the ATTC platform is anticipated to inject new vitality into the pipeline [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The overseas sales of Furquatinin are strong, and the potential of the ATTC platform is promising [5] - The company has adjusted its full-year guidance for oncology business to USD 270-350 million based on strong sales performance [7] - The unique ATTC platform is expected to overcome resistance to targeted therapies and reduce toxicity, with several potential pipelines in development [7] Financial Performance - For the first half of 2025, the company reported total revenue of USD 278 million, with oncology and autoimmune business contributing USD 144 million and other business USD 134 million [7] - The revenue from Furquatin overseas reached USD 43.1 million, with a year-on-year growth of 25% [7] - The company forecasts total revenue of USD 580 million, USD 713 million, and USD 901 million for 2025, 2026, and 2027 respectively [8] Earnings Forecast and Valuation - The projected net profit for 2025 is USD 427 million, with a significant year-on-year growth of 1032.3% [6] - The estimated earnings per share for 2025 is USD 0.49, with a projected P/E ratio of 6.69 [6] - The company's fair equity value is estimated at HKD 28 billion, assuming a perpetual growth rate of 2% and a WACC of 9.43% [7]

Core Viewpoint - Daiwa has downgraded the revenue forecast for Hutchison China MediTech (00013) for the years 2025 to 2027 by 16% to 29% due to lowered domestic drug sales expectations [1] Revenue Forecast - The new projections for total drug sales are expected to grow by 6%, 21%, and 28% for the years 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are $433 million, $30 million, and $40 million for the years 2025, 2026, and 2027 respectively [1] Rating and Target Price - Daiwa maintains a "Buy" rating for Hutchison China MediTech, with a target price reduced from HKD 33 to HKD 30 [1] Sales Performance - The company's product sales in the first half of the year decreased by 4% year-on-year to $234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Drug Development Progress - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] Positive Developments - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be presented at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Profit Performance - The company reported a net profit of $455 million in the first half of the year, compared to $26 million in the same period last year, mainly due to the sale of part of its non-core joint venture equity, generating $416 million in revenue [1]

Core Viewpoint - Daiwa has downgraded the revenue forecast for Hutchison China MediTech (00013) for the years 2025 to 2027 by 16% to 29% due to lowered domestic drug sales expectations, while maintaining a "Buy" rating and reducing the target price from HKD 33 to HKD 30 [1] Revenue Forecast - The new projections for total drug sales are expected to grow by 6%, 21%, and 28% for the years 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are projected to be USD 433 million, USD 30 million, and USD 40 million for the years 2025, 2026, and 2027 respectively [1] Sales Performance - In the first half of the year, Hutchison China MediTech's product sales decreased by 4% year-on-year to USD 234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Product Development - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] Positive Developments - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be announced at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Financial Performance - The net profit for the first half of this year reached USD 455 million, compared to USD 26 million in the same period last year, primarily due to the sale of part of a non-core joint venture, generating USD 416 million in revenue [1]

Core Viewpoint - The report from CMB International maintains a "Buy" rating for Hutchison China MediTech (00013), highlighting the differentiated ATTC platform while lowering sales forecasts for the company's three major commercial products and adjusting the target price to HKD 37.6 [1] Group 1: Financial Performance - The company's revenue for the first half of the year decreased by 9% year-on-year, with oncology/immunology revenue dropping by 15%, falling short of both the bank's and market expectations [1] - Management has revised the full-year 2025 revenue guidance for oncology/immunology from USD 350 million to USD 450 million down to USD 270 million to USD 350 million [1] - The company has significantly narrowed its operating loss in the first half and is expected to achieve operational breakeven starting in the second half of the year [1] Group 2: Product Development - The first candidate drug HMPL-A251 from the differentiated ATTC platform is expected to initiate Phase I studies for solid tumors in China and the U.S. in the second half of the year [1] - Two additional ATTC molecules are anticipated to enter clinical trials by 2026, presenting potential business development opportunities [1]

Core Viewpoint - Daiwa's research report indicates that Hutchison China MediTech's product sales in the first half of the year decreased by 4% year-on-year to $234 million, primarily due to competitive risks in the domestic market, team restructuring, and industry anti-corruption impacts [1] Group 1: Sales Performance - The company's product sales for the first half of the year were $234 million, reflecting a 4% year-on-year decline [1] - The decline in sales is attributed to competitive risks, team restructuring, and the impact of industry anti-corruption measures [1] Group 2: Product Development and Pipeline - The progress of Sovleplenib has been delayed, with the company aiming to resubmit its application in the first half of next year [1] - The group plans to advance the development of a new generation Syk inhibitor, with an IND application expected to be submitted in the second quarter of next year [1] - The ATTC platform has achieved breakthroughs, with the first candidate drug HMPL-A251's IND application set to be submitted in early September, and preclinical data to be presented at the EORTC conference [1] - Two additional ATTC drugs are expected to initiate Phase I clinical trials next year [1] Group 3: Financial Forecasts - Based on the downward adjustment of domestic drug sales expectations, the revenue forecasts for 2025 to 2027 have been reduced by 16% to 29% [1] - The revised projections for total drug sales are expected to grow by 6%, 21%, and 28% in 2025, 2026, and 2027 respectively, compared to previous estimates of 34%, 36%, and 33% [1] - The latest net profit estimates are $433 million, $30 million, and $40 million for 2025, 2026, and 2027 respectively [1] Group 4: Rating and Target Price - The company maintains a "Buy" rating, with the target price adjusted from HKD 33 to HKD 30 [1]

Financial Data and Key Metrics Changes - The revenue for the first half of 2025 was $278 million, down 10% compared to the same period last year [10] - The company reported a record high net income of $455 million, primarily due to the partial divestment of its joint venture with Shanghai Farm [10] - Full year revenue guidance has been adjusted down to between $270 million to $350 million, reflecting revisions for clinical and commercial milestones [11] Business Line Data and Key Metrics Changes - Zecla, the company's global commercial product, saw a 25% growth in the first half of 2025 compared to 2024 [3] - The commercial performance for Fruzacla was strong, particularly in Japan, but faced challenges in China due to increased competition [12][14] - The MET TKI market experienced turbulence with the introduction of four new products, impacting Opas's market share initially [15] Market Data and Key Metrics Changes - The China CRC market has become more competitive with the launch of generics, affecting the company's market share [13] - The company noted a recovery in sales momentum in China, particularly in the second quarter of 2025 [66] Company Strategy and Development Direction - The company is exploring opportunities to leverage its cash for growth, focusing on commercialization and potential R&D investments [54] - The ATTC platform is a key focus, with plans for the first candidate IND filing expected soon [55] - The company aims to position its products in early alliances, particularly in combination therapies [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of sales in the second half of 2025, despite previous challenges [66] - The company is focused on addressing compliance issues and adapting marketing strategies to improve sales performance [81] - There is a belief that the sales decline in China is transitory, with expectations for continued growth [66] Other Important Information - The company has made significant progress in its late-stage product development, including approvals for savolitinib and fruquintinib in new indications [19][53] - The company is preparing for NDA submissions for savolitinib in gastric cancer and is also considering NRDL negotiations for its EZH2 product [93] Q&A Session Summary Question: Update on ATTC platform and drug targets - The IND submission for A251 is expected in early September, with details to be disclosed at the upcoming EORTC conference [61][62] Question: Sales decline and transition effects - The sales decline was influenced by team transitions and compliance issues, but there is optimism for recovery in the second half of 2025 [66] Question: Update on SYK inhibitor sofloplanib - The NDA submission is expected in March or April next year, with ongoing discussions with CDE regarding impurity levels [68][70] Question: Economic sensitivity affecting oncology products in China - The market remains strong despite turbulence, and there is confidence in the recovery of sales momentum [81][82] Question: Impact of tariffs on US sales - The impact of tariffs is uncertain, but manufacturing costs are relatively low, suggesting limited effects [91] Question: NDA submission timeline for savolitinib in gastric cancer - NDA filing is planned for late 2025 for late-stage gastric cancer with MET amplification [92]