Core Insights - The serum industry, particularly human tetanus antitoxin (TAT), is a critical yet undervalued segment in the biopharmaceutical sector, with significant growth potential and limited competition in China [1][2] - Jiangxi Biological Products Research Institute Co., Ltd. ("Jiangxi Biological") has established itself as a market leader, holding a 65.8% market share in China and 36.6% globally for human TAT as of 2024 [1][3] Group 1: Market Demand and Public Health Value - Tetanus poses a severe public health challenge, with an estimated 614 million cases globally in 2024 and a mortality rate of 41.4%, leading to over 20,000 deaths, particularly in resource-limited regions [2] - The demand for human TAT is expected to grow steadily, with the global market projected to reach $821 million by 2028 and $2.095 billion by 2033, reflecting compound annual growth rates (CAGR) of 19.1% and 20.6% respectively [2] Group 2: Competitive Advantages of Jiangxi Biological - Jiangxi Biological has integrated the entire serum production process, from animal immunization to antibody purification, creating significant technical barriers and cost advantages [4] - The company maintains a high gross margin of around 70% since 2022, supported by its ability to self-supply raw materials efficiently [4] Group 3: Product Pipeline and Innovation - Jiangxi Biological has developed a robust pipeline of products, including TAT, snake antivenom, and rabies immunoglobulin, with clear potential for clinical application and market expansion [5][6] - The company is the only one globally utilizing recombinant proteins, mRNA, and serum-free antigens for serum product development, enhancing its innovation capabilities [4] Group 4: Strategic Growth and International Expansion - Jiangxi Biological has a dual growth strategy, focusing on both domestic and international markets, with exports to over 30 countries, achieving a market share of approximately 90% in key overseas markets like the Philippines and Egypt [7] - The company is also exploring opportunities in the veterinary medicine sector, targeting products like veterinary TAT and PMSG, which have significant commercial potential [7] Group 5: Financial Performance and IPO Prospects - The company anticipates a compound annual growth rate of 24.7% in revenue and 68.5% in net profit from 2022 to 2024, indicating strong financial health [8] - The upcoming IPO in Hong Kong is expected to enhance the company's capital base, enabling further investment in R&D and international expansion [8]

Core Viewpoint - Jiangxi Biological Products Research Institute Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with CICC and China Merchants Securities International as joint sponsors [1] Company Overview - Jiangxi Biological is the largest provider and exporter of human tetanus antitoxin (TAT) in China and operates a fully integrated antiserum platform. The company has over 50 years of expertise in the research, production, and sales of antiserum products, establishing a solid market position domestically and internationally [4][5] - Antiserum products are derived from immunized plasma and are used to provide immune protection and treatment against critical infectious diseases, including tetanus, snakebite, and rabies, which pose significant public health challenges, especially in developing countries [4] Market Potential - The global human antiserum market is projected to grow from USD 321 million in 2019 to USD 409 million in 2024, with a compound annual growth rate (CAGR) of 4.9%. It is expected to reach USD 821 million by 2028 and USD 2.095 billion by 2033, with respective CAGRs of 19.1% and 20.6% [5] - The Chinese human antiserum market is anticipated to grow from USD 48 million in 2019 to USD 64 million in 2024, with a CAGR of 5.9%. By 2028, it is expected to reach USD 132 million and USD 291 million by 2033, with CAGRs of 19.9% and 17.0% respectively [5] Market Share - Jiangxi Biological is the largest provider of human TAT in China and globally, holding market shares of 65.8% and 36.6% respectively based on 2024 sales volume. The company has maintained over 50% market share in the Chinese human TAT market for 18 consecutive years [5][6] - The company exports human TAT to over 30 countries and regions in Asia and Africa, accounting for nearly 100% of China's export volume. It is the largest provider in the Philippines and Egypt, with approximately 90% market share in those regions [6] Financial Performance - For the fiscal years 2022, 2023, and 2024, Jiangxi Biological reported revenues of approximately RMB 142 million, RMB 198 million, and RMB 221 million respectively. The net profits for the same years were approximately RMB 26.5 million, RMB 55.5 million, and RMB 75.1 million [6][7]