Core Viewpoint - The company reported strong financial performance for H1 2025, with total revenue of 7.434 billion RMB, a year-on-year increase of 14.3%, and a net profit attributable to shareholders of 3.135 billion RMB, up 15.02% [1] Financial Performance - Total revenue for H1 2025 reached 74.34 billion RMB, reflecting a 14.3% year-on-year growth [1] - Net profit attributable to shareholders was 31.35 billion RMB, marking a 15.02% increase compared to the previous year [1] - Revenue from innovative drug products amounted to 61.45 billion RMB, up 22.1%, accounting for 82.7% of total revenue [1] Product Revenue Breakdown - Revenue from the oncology product portfolio, including drugs like Amatinib and Flumatinib, was 45.31 billion RMB, remaining stable year-on-year [1] - Revenue from the anti-infection product portfolio, including Adefovir and Metronidazole, reached 7.35 billion RMB, a 4.9% increase [1] - Revenue from the central nervous system disease product portfolio, including Inalizumab, was 7.68 billion RMB, up 4.8% [1] - Revenue from the metabolic and other diseases product portfolio surged to approximately 14.00 billion RMB, a significant increase of 134.5% [1] Strategic Developments - The company received an upfront payment of 112 million USD from MSD for the agreement related to HS-10535 (an oral small molecule GLP-1RA) [1] - The sales data from sample hospitals indicated a growth from 18.41 million RMB in 2020 to 1.784 billion RMB in 2024, with a compound annual growth rate of 214% [2] - Amatinib has expanded its indications related to NSCLC, with four approved indications and additional ones under review [2] Clinical Development - The company has over 40 candidate innovative drugs undergoing more than 70 clinical trials as of H1 2025 [3] - Eight new innovative drugs entered clinical trials in H1 2025, including HS-20122 (EGFR/c-Met ADC) and HS-10510 (PCSK9) [3] - Three new drugs entered Phase III clinical trials, including HS-20137 (IL-23p19) for psoriasis and two ADCs for bone and soft tissue sarcoma and ovarian cancer, with overseas rights granted to GSK [3] Revenue and Profit Forecast - The company's revenue forecast for 2025 has been revised upward from 13.741 billion RMB to 14.668 billion RMB, with expected revenues of 15.835 billion RMB and 17.779 billion RMB for 2026 and 2027, respectively [3] - The net profit forecast for 2025 has been adjusted from 4.746 billion RMB to 5.167 billion RMB, with expected net profits of 5.325 billion RMB and 6.133 billion RMB for 2026 and 2027, respectively [3]

Core Viewpoint - Tianfeng Securities maintains an "overweight" rating for Hansoh Pharmaceutical, adjusting revenue and net profit forecasts for 2025, 2026, and 2027 due to expected large BD transaction payments [1] Group 1: Financial Performance - The revenue forecast for 2025 is raised from 137.41 billion to 146.68 billion RMB, with expected revenues of 158.35 billion and 177.79 billion RMB for 2026 and 2027 respectively [1] - The net profit forecast for 2025 is increased from 47.46 billion to 51.67 billion RMB, with expected net profits of 53.25 billion and 61.33 billion RMB for 2026 and 2027 respectively [1] - In the first half of 2025, total revenue reached 74.34 billion RMB, with a net profit of 31.35 billion RMB [1] Group 2: Product Performance - Revenue from innovative drug products reached 61.45 billion RMB, accounting for 82.7% of total revenue [1] - The metabolic and other fields saw significant growth, with revenue from this segment approximately 14.00 billion RMB, a year-on-year increase of 134.5% [1] - The anti-tumor product portfolio, including Amatinib and Flumatinib, generated revenue of 45.31 billion RMB, remaining stable year-on-year [1] Group 3: Innovation and Clinical Development - Over 40 candidate innovative drugs are undergoing more than 70 clinical trials, with 8 new drugs entering clinical trials in the first half of 2025 [3] - Three drugs have entered Phase III clinical trials, including HS-20137 for psoriasis and HS-20093 and HS-20089 for sarcoma and ovarian cancer respectively [3] - The TYK2 inhibitor HS-10374 is also in Phase III trials, showing low skin toxicity risk [3] Group 4: Market Position and Growth - Amatinib, as the first domestic third-generation EGFR TKI, has seen rapid sales growth, with a compound annual growth rate of 214% from 2020 to 2024 [2] - Amatinib is expanding its indications related to NSCLC, with four approved indications and additional ones expected in 2025 [2] - The drug received approval from the UK MHRA in June 2025, marking Hansoh's first entry into the overseas market [2]

Core Viewpoint - Tianfeng Securities maintains an "overweight" rating for Hansoh Pharmaceutical (03692), adjusting the 2025 revenue forecast from 13.741 billion to 14.668 billion RMB, with expected revenues of 15.835 billion and 17.779 billion RMB for 2026 and 2027 respectively. The net profit forecast for 2025 is raised from 4.746 billion to 5.167 billion RMB, with projections of 5.325 billion and 6.133 billion RMB for 2026 and 2027 respectively [1] Group 1 - In H1 2025, the total revenue of the company reached 7.434 billion RMB, with a net profit of 3.135 billion RMB. Revenue from innovative drug products amounted to 6.145 billion RMB, accounting for 82.7% of total revenue [1] - The revenue from the metabolic and other fields saw significant growth, with the MSD upfront payment received [1] - In H1 2025, the product portfolio in the oncology field, including Amivantamab and Furmonertinib, generated revenue of 4.531 billion RMB, remaining stable year-on-year [1] Group 2 - The sales of Amivantamab, the first domestic third-generation EGFR TKI, have rapidly increased, with a compound annual growth rate of 214% from 2020 to 2024, reaching 1.784 billion RMB in 2024 [2] - Amivantamab has expanded its indications related to NSCLC, with four approved indications and additional approvals expected in 2025 [2] - The company aims to obtain EMA recognition for Amivantamab in overseas markets following its approval by the UK MHRA in June 2025 [2] Group 3 - The company has over 40 candidate innovative drugs undergoing more than 70 clinical trials as of H1 2025 [3] - Eight new innovative drugs entered clinical trials in H1 2025, including HS-20122 (EGFR/c-Met ADC) and HS-10510 (PCSK9) [3] - Three new drugs entered Phase III clinical trials, including HS-20137 (IL-23p19) for psoriasis and two ADCs for bone and soft tissue sarcoma and ovarian cancer, with overseas rights granted to GSK [3]

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" and the rating has been maintained [2] Core Views - The pharmaceutical and biotechnology industry index increased by 1.03% during the reporting period, outperforming the CSI 300 index which rose by 0.56% [3][16] - The industry valuation as of September 12, 2025, shows a PE (TTM overall method, excluding negative values) of 31.79x, up from 31.41x in the previous period, indicating an upward trend but still below the average [4][22] - Recent academic conferences and industry dynamics highlight the strength and resilience of China's innovative drug development capabilities [7][8] Industry Trends - The top-performing sub-industries include other biological products and medical research outsourcing, with increases of 4.17% and 3.64% respectively, while traditional Chinese medicine and hospitals saw declines of 1.36% and 1.23% [3][16] - A total of 48 listed companies in the pharmaceutical and biotechnology sector experienced a net reduction in shareholder holdings amounting to 3.686 billion yuan, with 6 companies increasing their holdings by 406 million yuan and 42 companies reducing by 4.092 billion yuan [4] Important Industry News - The NMPA has optimized the review and approval process for clinical trials of innovative drugs, aiming to enhance the efficiency of clinical research [26][27] - Sanofi's Teplizumab has been approved by the NMPA as the first innovative drug to delay the progression of type 1 diabetes [37][38] - The U.S. government is considering strict restrictions on Chinese pharmaceuticals, which may impact the industry [49][50] Investment Recommendations - Investors are advised to focus on companies with differentiated advantages in innovative pipelines, particularly in oncology, autoimmune, and metabolic disease areas [8] - Companies with international standard clinical and data capabilities, as well as those with mature license-out capabilities and global collaboration resources, are also recommended for investment [8]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company reported a total revenue of 7.434 billion yuan for H1 2025, representing a year-on-year growth of 14.3%, with a net profit attributable to shareholders of 3.135 billion yuan, up 15.02% year-on-year [1] - Revenue from innovative drug products reached 6.145 billion yuan, showing a year-on-year increase of 22.1%, and accounted for 82.7% of total revenue [1] - The metabolic and other fields saw significant revenue growth, with a 134.5% increase in revenue from related products, amounting to approximately 1.4 billion yuan [2] Summary by Sections Financial Performance - The company adjusted its 2025 revenue forecast from 13.741 billion yuan to 14.668 billion yuan, with expected revenues of 15.835 billion yuan and 17.779 billion yuan for 2026 and 2027, respectively [5] - The net profit forecast for 2025 was raised from 4.746 billion yuan to 5.167 billion yuan, with projections of 5.325 billion yuan and 6.133 billion yuan for 2026 and 2027 [5] Product Development - The company has over 40 candidate innovative drugs undergoing more than 70 clinical trials, with 8 new innovative drugs entering clinical trials in H1 2025 [4] - Three new drugs have entered Phase III clinical trials, including HS-20137 for psoriasis and two ADCs for bone and soft tissue sarcomas and ovarian cancer, with overseas rights granted to GSK [4] Market Position - The sales of the domestic first third-generation EGFR TKI, Amatinib, have grown rapidly, with a compound annual growth rate of 214% from 2020 to 2024, and it is expected to account for about 28% of total sales in 2024 [3] - The company is actively expanding indications related to NSCLC, with multiple approvals and ongoing NDA reviews for new treatment indications [3]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 42.53, up from a previous target of HKD 28.95 [7]. Core Insights - The company reported a revenue of HKD 74.34 billion for H1 2025, representing a year-on-year increase of 14%, with net profit rising by 15% to HKD 31.35 billion. The revenue from innovative drugs reached HKD 61.45 billion, up 22% year-on-year, accounting for 83% of total revenue [1]. - The company is expected to achieve a sales revenue of over HKD 100 billion from innovative drugs by 2025, with a revenue share exceeding 80% [3]. - The company has a robust pipeline with over 40 new molecular entities under research and has consistently achieved high-quality external licensing agreements, totaling USD 7.3 billion over the past three years [3]. Revenue Breakdown by Therapeutic Areas - Oncology: Revenue of HKD 45.31 billion (+1% year-on-year), driven by Amivantamab and other milestone payments, with product sales growth exceeding 20% after excluding collaboration revenue [2]. - Anti-infectives: Revenue of HKD 7.35 billion (+5% year-on-year), primarily driven by Adefovir [2]. - CNS: Revenue of HKD 7.68 billion (+5% year-on-year), mainly driven by Inalizumab [2]. - Metabolic and other diseases: Revenue of HKD 14.00 billion (+142% year-on-year), driven by milestone payments for GLP-1 and HS-20094 [2]. Pipeline and Clinical Development Updates - The company is advancing its pipeline with several drugs in various stages of clinical trials, including HS-20093 and HS-20089, which are expected to enter critical clinical phases in the coming years [4]. - The company is actively expanding into skin and kidney autoimmune diseases, with several candidates already in Phase III clinical trials [4]. Profit Forecast and Valuation - The forecasted net profit for 2025-2027 is HKD 52.02 billion, HKD 54.80 billion, and HKD 57.27 billion, respectively, with corresponding EPS of HKD 0.88, HKD 0.92, and HKD 0.96 [5]. - The company’s SOTP valuation is estimated at HKD 2529.44 billion, with innovative drugs valued at HKD 2483.38 billion and generics at HKD 46.06 billion [5][12].

Investment Rating - Initiate with OUTPERFORM rating [1][2] Core Views - Hansoh Pharma is a leading innovative pharmaceutical company in China, focusing on oncology, anti-infection, central nervous system diseases, metabolic diseases, and autoimmune diseases, with a robust pipeline of over 30 clinical-stage innovative drug projects and 50 ongoing clinical studies [3][9] - The company has seen a significant increase in innovative drug revenue, projected to exceed 10 billion RMB in 2025, accounting for over 80% of total revenue [3][17] - The oncology segment is a key growth driver, with revenue expected to reach 8.12 billion RMB in 2024, representing 66% of total revenue [27] Summary by Sections 1. Company Overview - Established in 1995, Hansoh Pharma has over 30 years of experience in the pharmaceutical industry, with a focus on R&D, production, and commercialization [9][10] - The company has a strong global management team with extensive industry experience [13][14] 2. Oncology Segment - The oncology segment is well-established, with a comprehensive product system covering various disease types and treatment stages [4][27] - The core product, Amivantamab, has gained significant market share and is expected to continue driving growth [27][29] 3. Innovative Drug Pipeline - The company has a diverse pipeline with over 40 innovative drug candidates across various therapeutic areas, including ADCs and dual antibodies [20][24] - Recent collaborations with multinational corporations have strengthened the company's R&D capabilities and expanded its pipeline [5][25] 4. Financial Projections - Revenue projections for FY25-27 are 13.76 billion RMB, 14.86 billion RMB, and 16.5 billion RMB, respectively, with net profits of 4.62 billion RMB, 4.69 billion RMB, and 5.2 billion RMB [6][17] - The company has increased its R&D investment significantly, with a projected R&D expense ratio of 22% in 2024 [15][17] 5. Market Position and Strategy - Hansoh Pharma is positioned as a leading player in the Chinese pharmaceutical market, with a focus on innovative drug development and international expansion [3][9] - The company aims to leverage its strong R&D capabilities and strategic partnerships to enhance its market presence and drive future growth [5][20]

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 23.82 [8][9]. Core Insights - The company reported a revenue of RMB 12.261 billion for 2024, representing a year-on-year growth of 21.3%, and a net profit of RMB 4.372 billion, up 33.4% year-on-year. The revenue from innovative drugs reached RMB 9.477 billion, growing 38.1% year-on-year, and accounting for 74% of total revenue, which aligns with expectations [1][2]. - The growth in revenue is driven by strong performance in oncology and anti-infection segments, with revenues of RMB 8.122 billion and RMB 1.464 billion respectively, reflecting increases of 31.7% and 15.4% year-on-year. The gross margin improved to 91%, while the R&D expense ratio increased to 22%, indicating ongoing investment in innovation [2][3]. - The company has seven innovative drugs and nine indications included in the national medical insurance catalog as of 2024, with over 40 new molecular entities in more than 60 clinical trials. The company completed three license-in agreements in 2024, generating R&D expenses of RMB 247 million [3][4]. Summary by Sections Financial Performance - For 2024, the company achieved revenues of RMB 12.261 billion, with a year-on-year growth of 21.35%. The net profit for the same year was RMB 4.372 billion, reflecting a growth of 33.39% [7][19]. - The projected net profits for 2025 and 2026 are RMB 4.400 billion and RMB 4.179 billion respectively, with an expected EPS of RMB 0.74 for 2025 [5][19]. Research and Development - The company has a robust pipeline with 40 new molecular entities and over 60 clinical trials ongoing. Key drugs like Amatinib are expected to generate significant sales, projected to reach RMB 6 billion by 2025 [4][5]. - The company is actively expanding into autoimmune diseases and has multiple assets in development for skin diseases and kidney diseases [4][5]. Valuation - The company is valued at HKD 1,414 billion, with the innovative drug segment valued at HKD 1,378 billion and the generic drug segment at HKD 36 billion. The target price reflects an increase from the previous valuation of HKD 22.28 [5][9].