Group 1 - The company signed an exclusive agreement with Pfizer for the global development, production, and commercialization rights of its PD-1/VEGF bispecific antibody SSGJ-707, excluding mainland China, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [1] - The agreement also includes a tiered sales revenue sharing based on product sales in the licensed regions, and Pfizer will purchase $100 million worth of common stock in the company upon the agreement's effective date [1] - The company maintains its profit forecast, expecting net profits of 2.328 billion, 2.612 billion, and 2.938 billion yuan for 2025-2027, with corresponding EPS of 0.97, 1.09, and 1.23 yuan per share, resulting in a current PE of 9.3, 8.3, and 7.4 times [1] Group 2 - SSGJ-707 has shown excellent ORR and DCR in the treatment of NSCLC patients, indicating its best-in-class potential, and has received breakthrough therapy designation from the National Medical Products Administration for first-line treatment of PD-L1 positive locally advanced or metastatic NSCLC [2] - The company is advancing clinical research for SSGJ-707 in other areas, including colorectal cancer and gynecological tumors, and has received FDA IND approval [2] - The company’s existing products, such as Tebentafusp, are expected to see growth due to successful negotiations for zero price reduction in 2024 and the addition of new indications, contributing to cash flow [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has entered into a significant agreement with Pfizer regarding the global development, production, and commercialization rights for its innovative PD-1/VEGF bispecific antibody SSGJ-707, which includes an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [6] - The company maintains its profit forecast, expecting net profits of 2.328 billion, 2.612 billion, and 2.938 billion CNY for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.97, 1.09, and 1.23 CNY per share [6] - The current stock price corresponds to a PE ratio of 9.3, 8.3, and 7.4 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation [6] Financial Summary and Valuation Indicators - The company's revenue is projected to grow from 7.836 billion CNY in 2023 to 10.078 billion CNY in 2025, reflecting a year-over-year growth rate of 14.1% and 10.7% respectively [9] - Net profit is expected to increase from 1.549 billion CNY in 2023 to 2.328 billion CNY in 2025, with a year-over-year growth of (19.1%) in 2023, followed by 34.9% in 2024 and 11.4% in 2025 [9] - The gross margin is projected to remain stable at around 84.2% from 2025 to 2027, while the net margin is expected to improve slightly from 26.6% in 2025 to 26.8% in 2027 [9] - The company’s ROE is forecasted to increase from 0.8% in 2025 to 1.1% in 2027 [9] Pipeline and Product Development - The company’s core product SSGJ-707 has shown promising results in clinical trials for NSCLC, achieving excellent ORR and DCR, and has received breakthrough therapy designation from the National Medical Products Administration [7] - The company is advancing multiple clinical studies for SSGJ-707, including a Phase III trial for NSCLC and ongoing research for colorectal cancer and gynecological tumors [7] - The company’s existing products, including Tebentafusp and others, are expected to contribute positively to cash flow, with successful negotiations for new indications enhancing growth potential [7]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has entered into a significant agreement with Pfizer regarding the global development, production, and commercialization rights for its innovative PD-1/VEGF bispecific antibody SSGJ-707, which highlights the company's innovative capabilities and potential for value realization [6] - The company is expected to maintain its profit forecasts, with projected net profits of 2.328 billion, 2.612 billion, and 2.938 billion yuan for the years 2025 to 2027, respectively, and corresponding EPS of 0.97, 1.09, and 1.23 yuan per share [6] - The current stock price corresponds to a PE ratio of 9.3, 8.3, and 7.4 for the years 2025 to 2027, indicating a favorable valuation [6] Financial Summary and Valuation Indicators - Revenue for 2023 was 7.836 billion yuan, with projections of 9.108 billion yuan for 2024 and 10.078 billion yuan for 2025, reflecting a year-over-year growth of 14.1%, 16.2%, and 10.7% respectively [9] - Net profit for 2023 was 1.549 billion yuan, with projections of 2.090 billion yuan for 2024 and 2.328 billion yuan for 2025, showing a year-over-year growth of (19.1)%, 34.9%, and 11.4% respectively [9] - The gross margin is expected to remain stable at around 84.2% from 2025 to 2027, while the net margin is projected to increase from 26.6% in 2025 to 26.8% in 2027 [9] - The company’s ROE is projected to improve from 0.8% in 2025 to 1.1% in 2027 [9]