Core Viewpoint - The company, Tibet Weixin Kang Pharmaceutical Co., Ltd., has received approval from the National Medical Products Administration for clinical trials of Lidocaine and Dicaine Cream, which is intended for local anesthesia in adult skin surgeries [1][2]. Drug Basic Information - Drug Name: Lidocaine and Dicaine Cream - Dosage Form: Cream - Specification: Each gram contains 70mg of Lidocaine and 70mg of Dicaine - Application: Clinical trial approval - Acceptance Number: CYHL2500168 - Approval Conclusion: The clinical trial application meets the requirements for drug registration and is approved for use in local anesthesia for intact skin prior to adult skin surgeries [1]. Other Relevant Information - The drug was developed by Zars Company and was approved by the FDA in the U.S. on June 29, 2006, under the brand name Pliaglis [2]. - Currently, there are no domestic listings for this product, but four companies have received clinical trial approvals: Jiangsu Yingke Biological Pharmaceutical Co., Ltd., Zhejiang Funuo Pharmaceutical Co., Ltd., Beijing Nobot Biological Technology Co., Ltd., and Kedi Biopharmaceuticals (Wuxi) Co., Ltd. [2]. - The company has invested approximately RMB 8.9453 million in the research and development of this drug as of October 2025 [3]. - The total sales amount for similar products, including Compound Lidocaine Cream and Dapiprazole Cream, in urban public hospitals and county-level public hospitals in China was approximately RMB 422 million in 2024 [3].

Core Viewpoint - Weitengkang (603676) announced that its wholly-owned subsidiary, Tibet Zhongwei Chengkang Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the clinical trial of Lidocaine Dincaine Cream for local anesthesia in adult skin surgeries [1] Group 1 - The approval allows the company to conduct clinical trials for the product, which is intended for local anesthesia on intact skin prior to surgical procedures [1]

Core Viewpoint - Weitengkang (603676.SH) announced that its wholly-owned subsidiary, Tibet Zhongwei Chengkang Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the clinical trial of Lidocaine and Bupivacaine Cream [1] Group 1 - The approved product, Lidocaine and Bupivacaine Cream, was developed by Zars Company and was approved by the FDA in the United States on June 29, 2006, under the brand name Pliaglis [1] - The cream contains 70mg of Lidocaine and 70mg of Bupivacaine per gram [1]

Core Viewpoint - The company announced that its wholly-owned subsidiary, Tibet Zhongwei Chengkang Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the clinical trial of Lidocaine Dincaine Cream for local anesthesia in adult skin surgeries [1] Group 1 - The approval includes a clinical trial notification for the use of the product on intact skin prior to surgical procedures [1]

Core Viewpoint - Weitengkang (603676.SH) announced that its wholly-owned subsidiary, Tibet Zhongwei Chengkang Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration (NMPA) for the clinical trial of Lidocaine and Bupivacaine Cream, marking a significant step in the development of this product for local anesthesia in adult skin surgeries [1] Group 1: Clinical Trial Approval - The NMPA approved the clinical trial application for Lidocaine and Bupivacaine Cream, which was submitted on September 17, 2025, confirming compliance with drug registration requirements [1] - The cream is intended for local anesthesia on intact skin prior to adult skin surgeries [1] Group 2: Product Background - Lidocaine and Bupivacaine Cream was developed by Zars Company and received FDA approval in the United States on June 29, 2006, under the brand name Pliaglis, with a formulation containing 70mg of Lidocaine and 70mg of Bupivacaine per gram [1] - The NMPA's 31st batch of reference preparation catalog specifies that the reference preparation for this cream is the unimported original drug approved in the U.S. Orange Book and the EU, with licensed manufacturers being Taro Pharmaceuticals and Difa Cooper SPA/Galderma Laboratorium GmbH [1] - Currently, this product is not available in the domestic market [1]

Core Viewpoint - Weixingkang (603676.SH) announced that its wholly-owned subsidiary, Tibet Zhongwei Chengkang Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration (NMPA) for the clinical trial of Lidocaine and Dicaine Cream, which is intended for local anesthesia in adult skin surgeries [1] Group 1 - The clinical trial application for Lidocaine and Dicaine Cream was accepted on September 17, 2025, and meets the requirements for drug registration [1] - The cream was developed by Zars Company and was approved by the FDA in the United States on June 29, 2006, under the brand name Pliaglis, containing 70mg of Lidocaine and 70mg of Dicaine per gram [1] - The NMPA's 31st batch of reference preparation directory identifies the reference preparation for Lidocaine and Dicaine Cream as the unimported original drug listed in the US Orange Book and the EU, with the license holders being Taro Pharmaceuticals and Difa Cooper SPA/Galderma Laboratorium GmbH [1] Group 2 - Currently, there are no domestic listings for this product in China [1]

Core Viewpoint - The announcement indicates that the company's wholly-owned subsidiary, Tibet Zhongwei Chengkang, has received approval from the National Medical Products Administration for the clinical trial of Lidocaine and Bupivacaine Cream, which is a significant development for the company in expanding its product portfolio in the pharmaceutical market [1] Group 1: Product Development - The Lidocaine and Bupivacaine Cream was developed by Zars Company and received FDA approval in the United States on June 29, 2006, under the brand name Pliaglis [1] - The cream contains 70mg of Lidocaine and 70mg of Bupivacaine per gram [1] - Currently, there are no domestic listings for this product in China [1] Group 2: Regulatory Approval - The National Medical Products Administration has included the Lidocaine and Bupivacaine Cream in the 31st batch of reference preparation directory, confirming its status as a reference preparation for unimported original drugs listed in the US Orange Book and the EU [1] - The licensed manufacturers for the reference preparation are Taro Pharmaceuticals and Difa Cooper SPA/Galderma Laboratorium GmbH [1]

Core Insights - The company reported a revenue of 1.86 billion yuan for the first three quarters of 2025, a year-on-year decrease of 21.5%, and a net profit attributable to shareholders of 1.09 billion yuan, down 31.1% year-on-year [1] - The decline in performance is attributed to industry growth slowdown and intensified competition [1] Financial Performance - Q3 revenue was 570 million yuan, a year-on-year decline of 21.3%, with a net profit of 300 million yuan, down 34.6% year-on-year [1] - The gross margin in Q3 decreased by 1.4 percentage points to 93.2%, while the sales expense ratio increased by 6.4 percentage points to 15.4% [2] - The net profit margin and non-GAAP net profit margin in Q3 fell by 11.0 and 16.5 percentage points to 53.7% and 45.0%, respectively [2] Industry Trends - Industry growth is under pressure due to intensified competition, although the revenue decline in Q3 showed a narrowing compared to Q2 [2] - The company is actively adjusting its sales team and strategies to enhance education for doctors and institutions, aiming for improvement in future performance [2] Product Pipeline and International Expansion - The company has received approval for Minoxidil lotion and has several products at various stages of development, including Lidocaine and Dexamethasone cream, which are under review [3] - The ongoing integration of Regen and global channel expansion is expected to support the company's long-term growth in the global aesthetic medicine market [3] Profit Forecast and Valuation - The profit forecast for 2025-2026 has been revised down by 11% and 5% to 1.65 billion and 1.92 billion yuan, respectively [4] - The current stock price corresponds to a P/E ratio of 29x for 2025 and 25x for 2026, with a target price of 221 yuan, indicating a potential upside of 38% [4]

Group 1 - The report highlights that public funds in Q3 2025 have reached historical highs in their allocations to the electronics and communications sectors, with the electronics allocation increasing from 18.67% in Q2 to 25.53% in Q3, and the relative overweight ratio rising from +9.1% to +12.75% [2][22][26] - The report indicates that the electronics, communications, and power equipment sectors are the top three in terms of overweight ratios across all industries, while allocations to home appliances, food and beverages, and automobiles have decreased [2][26] - The report notes that among the top 500 companies held by funds, the number of companies in the electronics, power equipment, and pharmaceutical sectors has increased significantly, with respective increases of 63.64%, 72.73%, and 62.75% [2][26] Group 2 - The report states that the Shanghai Composite Index has broken the 4000-point mark for the first time in ten years, with significant market activity driven by net inflows from margin trading and southbound funds [3][27] - It mentions that the total supply of funds was 301 billion yuan, while demand was 605 billion yuan, resulting in a net outflow of 304 billion yuan, indicating a high level of market activity despite the outflow [3][28] - The report highlights that southbound funds have seen a net inflow of 572.77 billion yuan, a 279.07% increase compared to the previous period, reflecting continued optimism towards the Hong Kong stock market [3][30] Group 3 - The report on Aimei Ke indicates that the company experienced a revenue decline of 21.49% year-on-year in the first three quarters of 2025, with a total revenue of 18.65 billion yuan and a net profit of 10.93 billion yuan, down 31.05% [8][37] - It emphasizes the company's strong R&D capabilities and a rich pipeline, with several products in various stages of approval and clinical trials, which are expected to drive future growth [8][39] - The report also notes the acquisition of the Korean company REGEN, which is anticipated to enhance Aimei Ke's international market presence, particularly in the medical aesthetics sector [8][39] Group 4 - The report on Zhongmei Energy states that the company achieved a revenue of 361.48 billion yuan in Q3 2025, a year-on-year decline of 23.8%, but a quarter-on-quarter increase of 28.26% [17] - It highlights that the coal segment benefited from a rebound in coal prices, with the average selling price per ton reaching 474 yuan, higher than the previous half-year average [17][18] - The report maintains profit forecasts for 2025-2027, projecting net profits of 175 billion yuan, 177 billion yuan, and 182 billion yuan, respectively [17][18]

Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [6][17]. Core Views - The company experienced a temporary pressure on performance in Q3 2025, with revenue of 1.865 billion yuan, down 21.49% year-on-year, and a net profit of 1.093 billion yuan, down 31.05% year-on-year. The outlook remains positive due to pipeline developments and overseas expansion opportunities [1][5]. - The company has a strong R&D capability and is entering the cosmetic raw materials sector, with several products in various stages of approval and clinical trials, which is expected to enhance growth potential [3]. - The acquisition of Korean company REGEN is a strategic move to enhance international presence, with products already gaining significant market share in various regions, indicating a strong potential for future growth [4]. Financial Performance Summary - For Q1-Q3 2025, the gross margin was 93.36%, down 1.44 percentage points year-on-year, and the net profit margin was 58.62%, down 8.12 percentage points year-on-year. The sales expense ratio increased to 12.39%, while the R&D expense ratio rose to 12.73% [2]. - The company forecasts revenues of 2.853 billion yuan for 2025, down from previous estimates, with net profits expected to be 1.604 billion yuan, reflecting a downward adjustment in profit expectations due to industry slowdown and increased competition [5][11]. Future Outlook - The company is expected to see revenue growth in the coming years, with projections of 2.853 billion yuan in 2025, 3.333 billion yuan in 2026, and 3.798 billion yuan in 2027, indicating a recovery trajectory post-2025 [5][10]. - The company maintains a leading position in the medical beauty sector, with ongoing R&D and strategic acquisitions expected to drive future growth [5][4].