Core Viewpoint - Xiansheng Pharmaceutical (02096) reported strong mid-year performance, with significant growth in revenue and net profit driven by innovative drug sales [1] Financial Performance - The company achieved a revenue of 3.585 billion yuan, representing a year-on-year increase of 15.1% [1] - Adjusted net profit reached 651 million yuan, up 21.1% year-on-year [1] Innovative Drug Development - Xiansheng Pharmaceutical has launched ten innovative drugs, with innovative drug revenue of 2.776 billion yuan, a 26% increase year-on-year [1] - The proportion of innovative drug revenue in total revenue exceeded 75% for the first time, reaching 77.4% [1] - Two innovative drugs are expected to be approved for market launch in the first half of 2025, and two candidate drugs are in the NDA review stage [1] Market Expectations - CICC believes that the company's mid-year performance exceeded market expectations, primarily driven by the innovative drug business [1] - The revenue from innovative drugs in the first half of 2025 is projected to reach 2.776 billion yuan, a 26% increase, with the revenue share rising from 74.3% in 2024 to 77.4% [1] - The company anticipates that the innovative drug "Kewiko" (Daliresib) may officially launch in the second half of 2025 [1] - Three products (Suvorexant, Daliresib, and the sublingual tablet) have been included in the recent commercial insurance catalog, which is expected to further boost innovative drug revenue [1]

Core Viewpoint - Xiansheng Pharmaceutical (02096) reported strong growth in its first half of 2025, driven by its innovative drug business, with revenue and adjusted net profit increasing by 15% and 21% year-on-year respectively [1][2] Group 1: Financial Performance - For 1H25, Xiansheng Pharmaceutical achieved a revenue of 27.76 billion yuan, reflecting a year-on-year increase of 15% [1][2] - The adjusted net profit for the same period rose by 21%, aligning with market expectations [1] - The innovative drug revenue grew by 26%, contributing to 77.4% of total revenue, an increase of 6.6 percentage points year-on-year [1][2] Group 2: Research and Development - The company invested over 1 billion yuan in R&D during 1H25, accounting for nearly 30% of total revenue [1] - Significant innovative research outcomes include the launch of Daliresp and Suweisita monoclonal antibody [1] - The company completed two business development transactions with AbbVie and NextCure, focusing on GPRC5D/BCMA/CD3 tri-antibody and CDH6ADC, with the former expected to enter Phase I trials in 2026 [1] Group 3: Market Outlook - The rapid growth of innovative drugs such as Kexaira and Xianbi sublingual tablets is anticipated to continue, with Kexaira expected to officially launch in the second half of 2025 [2] - Three products, including Suweisita monoclonal antibody, Daliresp, and Xianbi sublingual tablets, have been included in the recent commercial insurance directory, which is expected to further boost innovative drug revenue [2]

Core Viewpoint - The recent performance of Sihuan Pharmaceutical has exceeded market expectations, driven primarily by its innovative drug business [1][2] Group 1: Financial Performance - Sihuan Pharmaceutical reported a 15% year-on-year increase in revenue and a 21% increase in adjusted net profit for the first half of 2025 [1] - The innovative drug-related revenue grew by 26%, accounting for 77.4% of total revenue, an increase of 6.6 percentage points year-on-year [1][2] - The company's overall R&D investment exceeded 1 billion yuan, representing nearly 30% of total revenue [1] Group 2: Product Development and Market Position - The company has achieved significant milestones in innovative drug development, including the launch of Daliresp and Suvisumab [1] - Three products, including Suvisumab, Daliresp, and the sublingual tablet, have been included in the recent commercial insurance directory, which is expected to further boost innovative drug revenue [2] - The company anticipates that the product Kewico (Daliresp) is likely to be officially launched in the second half of 2025 [2]

Core Viewpoint - The company reported strong performance in 1H25, exceeding market expectations with significant growth in revenue and net profit driven by its innovative drug business [1][2]. Financial Performance - Revenue for 1H25 reached 3.585 billion yuan, a year-on-year increase of 15.1% [1] - Net profit attributable to shareholders was 604 million yuan, up 32.2% year-on-year, while adjusted net profit was 651 million yuan, reflecting a 21.1% increase [1] - The gross margin improved to 80.7%, an increase of 1.6 percentage points year-on-year [2] - Adjusted net profit margin stood at 18.2%, showing a year-on-year increase of 0.9 percentage points [2] Business Development - The innovative drug business showed strong commercialization progress, with revenue reaching 2.776 billion yuan in 1H25, a 26.0% increase year-on-year, and its revenue share rising from 74.3% in 2024 to 77.4% [1] - Key products such as Koseira and Xianbi sublingual tablets are experiencing rapid growth, with expectations for the launch of Koweike (Daliresheng) in 2H25 [1] - The company’s revenue in the neuroscience segment was 1.249 billion yuan, up 37.3% year-on-year, while oncology revenue reached 874 million yuan, a 41.1% increase [1] Research and Development - The company maintained a research and development investment rate of 28.7%, an increase of 9.0 percentage points year-on-year, indicating a commitment to innovation [2] - Two products were authorized for external licensing, and two products received approval for market launch [2] Profit Forecast and Valuation - The company raised its core net profit forecasts for 2025 and 2026 by 6% and 10% to 1.252 billion yuan and 1.427 billion yuan, respectively [2] - The current stock price corresponds to 23.8 times and 20.0 times the adjusted price-to-earnings ratio for 2025 and 2026 [2] - The target price was increased by 32.8% to 17.00 HKD, implying a potential upside of 33.1% [2]