Investment Rating - The investment rating for the company is maintained at "Buy-A" with a 12-month target price of 26.68 CNY per share [5]. Core Insights - The company has entered into a licensing agreement with Qilu Pharmaceutical to commercialize the GLP-1/GIP dual-target drug RAY1225 in China, which is expected to lead to significant sales growth [2][3]. - The company retains all rights to RAY1225 outside of China, including clinical development and marketing [2]. - Qilu Pharmaceutical's strong commercialization capabilities position RAY1225 for successful market entry and sales expansion in China [3]. Financial Projections - Projected revenues for the company from 2025 to 2027 are 28.53 billion CNY, 32.81 billion CNY, and 37.41 billion CNY, respectively [3]. - Expected net profits for the same period are 3.02 billion CNY, 3.78 billion CNY, and 4.46 billion CNY [3]. - The company is anticipated to enter a phase of realization of its innovative transformation, justifying a PE valuation of 60 times for 2026 [3]. Market Performance - As of January 16, 2026, the company's stock price was 22.10 CNY, with a total market capitalization of approximately 18.78 billion CNY [5]. - The stock has shown significant performance with a 12-month absolute return of 94.0% [6].

Summary of the Conference Call on ZHONGSHENG PHARMACEUTICAL's GLP-1/GIP Dual-target Drug RAY1225 Industry and Company Overview - The conference call focuses on ZHONGSHENG PHARMACEUTICAL, specifically its subsidiary's GLP-1/GIP dual-target drug RAY1225, which is aimed at treating obesity and Type 2 Diabetes (T2D) [1]. Core Insights and Arguments - The Phase 2 clinical trial data for RAY1225 was presented, highlighting the results from two studies: REBUILDING-1 and SHINING-1, with a dosing schedule of once every two weeks for 24 weeks [1]. - Weight loss results for the 3mg, 6mg, and 9mg groups were reported as follows: - 3mg group: -10.05% - 6mg group: -12.98% - 9mg group: -15.05% - Placebo group: -3.55% [1]. - HbA1c reduction for the same groups was noted: - 3mg group: -1.68% - 6mg group: -2.06% - 9mg group: -2.16% - Placebo group: -0.33% [1]. - Comparative data from a similar drug, Tirzepatide, was also discussed: - In the Tirzepatide Phase 3 data, the 15mg group showed a weight loss of approximately -12% (after adjusting for placebo) [1]. - In the Tirzepatide Phase 2 data, HbA1c reductions for the 1mg, 5mg, 10mg, and 15mg groups were reported as: - 1mg: -1.06% - 5mg: -1.73% - 10mg: -1.89% - 15mg: -1.94% - Placebo group: -0.06% [1]. Other Important but Potentially Overlooked Content - The data indicates that RAY1225 shows promising efficacy in weight loss and glycemic control compared to the placebo, suggesting a competitive position in the obesity and T2D treatment market [1]. - The results from both RAY1225 and Tirzepatide highlight the potential for dual-target therapies in managing obesity and T2D, which may attract investor interest in the pharmaceutical sector [1].