Company Update - The company announced that its self-developed Bcl-2 selective inhibitor, APG-2575 (also known as Lisangtuo), received conditional approval from the National Medical Products Administration of China for the treatment of adult patients with chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) who have previously undergone at least one systemic therapy including a Bruton tyrosine kinase (BTK) inhibitor [1] - Lisangtuo is the first Bcl-2 inhibitor approved in China for the treatment of CLL/SLL and the second globally, following AbbVie's venetoclax [1] Clinical Value and Research - The approval of Lisangtuo is based on a pivotal Phase II clinical study (APG2575CC201) that demonstrated an overall response rate (ORR) meeting the predefined endpoint for patients who failed BTK inhibitors and/or immunochemotherapy, with a favorable safety profile [2] - The drug has been included in the "CSCO Lymphoma Diagnosis and Treatment Guidelines 2025" as of April 2025 [2] - The company is conducting four global Phase III clinical studies to further explore Lisangtuo's indications, including studies for treated CLL/SLL patients and newly diagnosed acute myeloid leukemia (AML) patients [2] Profit Forecast and Valuation - The company maintains its net profit forecast for 2025 and 2026 at a loss of 1.09 billion yuan and 320 million yuan, respectively [2] - Given the approval of Lisangtuo and the potential for global indication expansion, the company maintains an outperform rating and raises the target price by 27.5% to 88 HKD, indicating a 15.3% upside from the current stock price [2]

Investment Rating - The report maintains a positive outlook on the innovative drug sector, expecting significant revenue growth and potential profitability for several companies in the first half of 2025 [3][8]. Core Insights - The innovative drug sector is projected to see revenue growth of at least 40% year-on-year for companies such as BeiGene, Innovent Biologics, and others, driven by the commercialization of core products [3][8]. - The Pharma sub-sector is expected to experience a revenue growth rate of 10-15% for companies like Hansoh Pharmaceutical and China Biologic Products, while others may see growth of 5-10% [3][8]. - The medical services sector is anticipated to have a revenue growth of 15-20% for companies like GuoShengTang, with a focus on mergers and acquisitions [3][8]. Summary by Sections Innovative Drugs - Companies expected to achieve over 40% revenue growth in 1H25 include BeiGene, Innovent Biologics, and others, primarily due to the commercialization of key products [3][8]. - Some companies, such as BeiGene and Innovent Biologics, are likely to reach profitability due to increased sales volume [3][8]. - The report highlights that companies like Hutchison China MediTech may see significant profit growth due to asset disposals [3][8]. Pharma - The impact of centralized procurement is gradually diminishing, allowing for continued innovation and transformation within the sector [3][8]. - Companies projected to achieve 10-15% revenue growth include Hansoh Pharmaceutical and China Biologic Products, while others like 3SBio and United Laboratories may see 5-10% growth [3][8]. Medical Services - GuoShengTang is expected to have a revenue growth of 15-20% in 1H25, with ongoing attention to domestic and international acquisition activities [3][8].