Macro Strategy - In July, non-bank deposits increased by 2.14 trillion yuan, the highest level for the same period since 2015, indicating a potential shift of funds into the stock market [2][3] - By 2024, the number of data enterprises in China is expected to exceed 400,000, with the data industry scale reaching 5.86 trillion yuan, a 117% increase compared to the end of the 13th Five-Year Plan [2] - The micro-short drama market in China reached a scale of 50.5 billion yuan in 2024, surpassing annual box office revenue for films for the first time [2][3] Innovative Drug Industry - The global biotech sector saw significant gains, with the Hang Seng Biotech Index rising by 6.87%, driven by upcoming events like the World Conference on Lung Cancer [5] - The domestic innovative drug industry is entering a pivotal phase where innovation results are expected to translate into performance, with a focus on the upcoming National Medical Insurance Directory negotiations for 2025 [5][7] - The 2025 World Conference on Lung Cancer will feature key presentations from companies like Kangfang Biotech and Fuhong Hanlin, showcasing their innovative products and clinical trial results [6] Vaccine Industry - The domestic vaccine sector is experiencing a significant shift, with the approval of a new vaccine for clinical trials and the first vaccine product passing the commercial insurance innovation drug directory review [12][13] - The vaccine market saw a 1.3% increase last week, with a cumulative increase of 2.28% in 2025 [14] - The vaccine industry is currently facing challenges due to supply-demand imbalances, but long-term prospects remain positive with a focus on innovation and international expansion [17][19] Electronic Industry - The electronic sector experienced a 7.02% increase last week, with notable gains in semiconductor and consumer electronics segments [20] - Huawei's launch of the UCM technology is expected to enhance domestic computing power demand, optimizing AI inference experiences [23][24] - Investment opportunities are seen in AI infrastructure and supply chains for consumer electronics, with a recommendation to maintain an "overweight" rating for the electronic industry [24] Securities Industry - The securities sector outperformed the market, with the broker index rising by 8.2%, indicating a recovery in valuation levels [26] - Daily trading volume in the stock market exceeded 20 trillion yuan, suggesting a positive trend for brokerage performance in the upcoming quarter [27][28] - The recommendation for the securities industry remains "overweight," with a focus on internet brokers that exhibit strong beta characteristics [29]

Core Viewpoint - 康方生物's stock rose over 4%, currently at 164.6 HKD with a trading volume of 1.404 billion HKD, following the announcement of significant clinical trial results to be presented at the 2025 World Lung Cancer Conference [1] Group 1: Clinical Developments - 康方生物's partner, Summit Therapeutics, will present the results of the global first PD-1/VEGF bispecific antibody drug, Ivoris, during the conference, specifically the Phase III HARMONi study results, which have been selected for a Late-Breaking Abstract presentation [1] - The company will also disclose efficacy data for the combination therapy of Cardonili and Proxilumab (VEGFR2) in patients with immune therapy-resistant lung cancer, which has been included in the Mini Oral session of the conference [1] - The combination therapy of Cardonili has previously been recognized as a breakthrough therapy for advanced squamous non-small cell lung cancer (NSCLC) after progression on PD-(L)1 inhibitors, highlighting its significant clinical value [1]

Core Viewpoint - 康方生物's stock rose over 4%, reaching 164.6 HKD, with a trading volume of 1.404 billion HKD, following the announcement of significant clinical trial results to be presented at the 2025 World Lung Cancer Conference [1] Group 1: Clinical Developments - 康方生物's partner, Summit Therapeutics, will present the results of the global first PD-1/VEGF bispecific antibody new drug, Ivoris, during the conference, which has been selected for a Late-Breaking Abstract oral presentation [1] - The company will also disclose efficacy data for the combination therapy of Cardonili and Proxilumab (VEGFR2) in the context of immune therapy-resistant lung cancer, which has been included in the conference's Mini Oral session [1] - The combination therapy of Cardonili has been recognized as a breakthrough treatment for advanced squamous non-small cell lung cancer (NSCLC) after progression on PD-(L)1 inhibitors, highlighting its significant clinical value [1]

华福证券 其他生物制品 2025 年 08 月 09 日 公 司 研 究 康方生物（09926.HK） 引领全球 IO2.0，依沃西有望占据最大市场份额 投资要点： AK112 进度全球领先，有望占据全球二代 IO 市场的最大份额 公 司 动 态 跟 踪 看好 PD-1 和 VEGF 靶点的广谱泛癌作用，VEGF 单抗贝伐珠 2019 年 全球峰值销售额约 71 亿美元，PD-1/PDL1 单抗 2024 年合计全球销售达 516 亿美金，全球合计近 600 亿美金的存量市场，依靠双靶协同机制做出增量 市场，空间巨大。目前 PD1/VEGF 或 PDL1/VEGF 双抗对外授权交易首付 款已达 39 亿美元，总金额已达 288 亿美元，代表性产品包括公司/Summit 的 AK112（13 项注册 3 期）、BMS/BioNTech 的 PM8002（3 项注册 3 期） 和 Pfizer/三生制药的 SSGJ-707（1 项注册 3 期），我们认为产业趋势趋于 清晰，看好 PD1/VEGF 双抗成为二代 IO 基石药物。 从进度来看，目前公司 AK112 国内已有 2 项适应症获批上市，1 项纳 入国家医保 ...

Core Insights - Kangfang Biopharma is a global leader in bispecific antibodies, with its core product, AK112 (PD-1/VEGF bispecific antibody), becoming the first bispecific antibody to surpass Keytruda in mPFS for first-line lung cancer treatment [1] - The report updates on AK112's clinical data both domestically and internationally, highlighting its potential as a blockbuster drug, and discusses the differentiation between AK104 and AK112 [1][2] - Future focus areas include the 2025 ESMO HARMONi-6 clinical data release, overseas clinical progress for AK112 and AK104, domestic healthcare negotiations in 2025, and potential business development opportunities [1] Commercialization Capability - Both Kadunili and AK112 have been included in healthcare insurance, with Kadunili achieving sales of 546 million yuan in its first year and 1.358 billion yuan in 2023, representing a growth of 148.5% [2] - AK112 generated approximately 350 million yuan in its first year post-launch, with the negotiated price dropping to 736 yuan per bottle, a reduction of 68% [2] - The overseas development of AK112 is supported by a $5 billion licensing agreement with Summit Therapeutics, which is conducting three ongoing Phase III clinical trials [2] R&D Pipeline - The company has over 50 innovative drug candidates targeting major diseases, with 24 new drugs in clinical research and commercialization stages, including 15 potential first-in-class or best-in-class bispecific antibodies [2] - 17 Phase III clinical trials are currently underway, including PD-1/LAG-3 bispecific antibody AK129 and TIGIT/TGF-β fusion protein AK130 [2] - The exploration of new therapeutic approaches through bispecific antibodies and ADCs is expected to become a second growth point for the company [2] Company Catalysts - Upcoming catalysts include the Phase III HARMONi-6 study data readout for AK112 at the ESMO conference in October, and potential updates on HARMONi-3 and HARMONi-7 overseas enrollment [3] - For AK104, data readout for post-operative adjuvant therapy in liver cancer is anticipated, along with potential global development plans [3][4] - Other significant data readouts include the final data for the combination of Paimu Li and Anru Te Ni in advanced liver cancer and the monoclonal antibody for moderate to severe atopic dermatitis [4] Financial Projections - The company is projected to achieve revenues of 3.732 billion yuan, 5.149 billion yuan, and 7.628 billion yuan in 2025, 2026, and 2027, respectively, with growth rates of 75.70%, 37.98%, and 48.14% [4] - Expected net profits for the same years are -75 million yuan, 335 million yuan, and 1.401 billion yuan [4] - The ongoing expansion of the R&D pipeline and the successful launch of innovative products are expected to contribute positively to the company's long-term sustainable growth [4]

Core Insights - The article highlights that only 13 women globally have become billionaires by founding healthcare companies, with 7 of them from China, indicating a significant presence of Chinese female entrepreneurs in the healthcare sector [1][3]. Industry Overview - The Chinese biopharmaceutical industry is experiencing a transformative phase, referred to as the "DeepSeek moment," as it evolves from being a "generic drug powerhouse" to a competitive force against Western innovation in pharmaceuticals [2]. - In 2024, over 1,250 new drug candidates are expected to enter the research and development phase in China, surpassing the European Union and nearly matching the United States' 1,440 candidates [2]. - Nearly one-third of the drug candidates licensed by large pharmaceutical companies in 2024 are from Chinese firms, a significant increase from zero in 2019 [3]. Company Highlights - **Hansoh Pharmaceutical Group**: Founded by Zhong Huijuan, the company reported a total revenue of approximately 12.26 billion yuan in 2024, with a year-on-year growth of about 21.3% [7]. - **Aimeike**: Founded by Jian Jun, the company specializes in hyaluronic acid production and was listed on the A-share market in 2020, achieving a market value exceeding 170 billion yuan [10]. - **Qizheng Tibetan Medicine**: Founded by Lei Jufang, the company generated sales revenue of 1.655 billion yuan in 2024, with a year-on-year growth of 16.31% [14]. - **Haisco Pharmaceutical Group**: Co-founded by Fan Xiulian, the company reported a revenue of 3.721 billion yuan in 2024, with a year-on-year increase of 10.92% [17]. - **Teva Biopharmaceuticals**: Founded by Yang Ying, the company has shown rapid growth, with revenues increasing from 1.527 billion yuan in 2022 to 2.817 billion yuan in 2024 [18]. - **Kangfang Biopharmaceutical**: Founded by Xia Yu, the company has developed several innovative drugs and is recognized for its leading position in the biopharmaceutical sector [23]. - **Xinlitai**: Co-founded by Liao Qingqing, the company has shifted focus to self-research and development, achieving a revenue of 4.012 billion yuan in 2024, with a year-on-year growth of 19.22% [26].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [4][12]. Core Insights - The company is advancing its global leadership with the innovative dual-target antibody Ivoris, which is undergoing pivotal Phase 3 clinical trials for first-line treatment of advanced pMMR/MSS mCRC [2][3]. - The company is entering an accelerated commercialization phase, with expected sales growth from the inclusion of Ivoris and Cardunili in national health insurance by 2024 [4]. - The company has a rich pipeline with over 50 projects in development, including differentiated ADCs and various therapeutic areas such as oncology, metabolism, and autoimmune diseases [4]. Financial Projections - Revenue forecasts for 2025 and 2026 have been adjusted downwards by 15% and 16% to 3.6 billion and 5.4 billion RMB, respectively. The net profit for the same years is projected to be -96 million and 426 million RMB [4][9]. - The company anticipates revenues of 7.5 billion RMB and a net profit of 1.3 billion RMB by 2027 [4][9]. - The projected revenue growth rates are 68.65% for 2025 and 49.36% for 2026, with a significant recovery expected in net profit growth by 2027 [9][11].

Investment Rating - The report does not explicitly state an investment rating for the pharmaceutical and biotechnology industry, but it indicates a positive outlook on the innovation drug sector, particularly regarding the international expansion of domestic innovative drugs [3][4]. Core Insights - The report highlights the continuous rise in the enthusiasm for innovative drugs going overseas, with significant collaborations such as the $9 billion partnership between Bristol-Myers Squibb and BioNTech for the development of a PD-L1/VEGF dual antibody [3][4]. - It notes that the domestic innovative drug pipeline is becoming increasingly competitive on a global scale, with a long-term positive outlook for the internationalization of innovative drugs [3][4]. - The report also discusses the recent peak of COVID-19 cases in China, with a positivity rate of 23.8% reported at the end of May, indicating a need for continued monitoring [3][4]. Market Weekly Review - The pharmaceutical and biotechnology sector rose by 1.13% from June 3 to June 6, underperforming compared to the Wind All A index, which increased by 1.61% [9][10]. - Among sub-sectors, raw materials and blood products both saw a rise of 2.89%, while in vitro diagnostics increased by 2% [10]. - Notable stock performances included Yiming Pharmaceutical with a 33.1% increase, while *ST Longjin experienced a significant decline of 36.3% [12]. Industry News and Key Company Announcements - Significant events include the presentation of clinical data for IBI363 by Innovent Biologics at the ASCO conference, showing promising efficacy in treating advanced non-small cell lung cancer [12][13]. - Stone Pharmaceutical received approval for its adenosylcobalamin capsules, expanding its product line in the blood and nervous system treatment areas [13]. - CanSino Biologics announced the approval of a new indication for its PD-1/CTLA-4 inhibitor, filling a gap in the treatment of cervical cancer in China [13]. - The report also mentions various other approvals and collaborations among companies, indicating a vibrant and active industry landscape [13][14].

Group 1: Hong Kong Consumer Services Investment Strategy - The report highlights the significant effect of the ready-to-drink tea segment, emphasizing the competition in supply chains. Mixue has the largest and earliest established supply chain, while Gu Ming excels in fruit procurement and cold chain logistics. Both companies are expected to enter the Hong Kong Stock Connect on June 9 [1][4]. - Online travel competition in China is improving, with Tongcheng Travel showing high performance and expected profit margin improvements. Trip.com Group's short-term investments may impact profit margins, but long-term growth is anticipated [1][4]. - Macau's gaming revenue shows resilience, with May gross gaming revenue reaching 21.2 billion MOP, a post-pandemic high, reflecting a 5% year-on-year increase and recovering 82% compared to the same period in 2019 [1][4]. Group 2: Key Companies to Watch - Key companies to focus on include Gu Ming (01364.HK), Mixue Group (02097.HK), Trip.com Group (09961.HK), and MGM China (02282.HK) [1][5]. Group 3: Overseas Pharmaceutical Developments - The report notes that the Hang Seng Healthcare Index rose by 2.35%, outperforming the Hang Seng Index by 0.93 percentage points [7]. - Domestic pharmaceutical companies are making progress, with Hansoh granting Regeneron global exclusive rights to its GLP-1/GIP dual receptor agonist HS-20094, receiving an upfront payment of $80 million and potential milestone payments of up to $1.93 billion [9][10]. - BioNTech and BMS have reached an agreement to co-develop and commercialize BioNTech's dual-specific antibody BNT327, with BMS paying an upfront fee of $1.5 billion and potential milestone payments of up to $7.6 billion [10]. Group 4: Education Sector Insights - The education index increased by 2.2%, outperforming the Hang Seng China Enterprises Index by 0.4 percentage points, with a year-to-date increase of 8.76% [14]. - The report suggests focusing on Hong Kong higher education companies, anticipating improved profitability due to slowed investment and peak capital expenditures. Recommended companies include Yuhua Education, Neusoft Ruixin Group, and China Education Group [16]. - The report also highlights the recovery in vocational training demand, with a positive outlook for China Oriental Education, which is expected to significantly enhance operational efficiency [16].

Group 1 - The core point of the news is that 3SBio has sold its PD-1/VEGF dual antibody SSGJ-707 to Pfizer for a record upfront payment of $1.25 billion and has initiated a Phase III clinical trial for the drug targeting advanced PD-L1 positive non-small cell lung cancer (NSCLC) [1][2] - The Phase III trial will enroll 420 patients and is expected to start in June 2023, with preliminary results anticipated by July 2026. The primary endpoint is progression-free survival (PFS) and the secondary endpoint is overall survival (OS) [1] - SSGJ-707 has received breakthrough therapy designation from the National Medical Products Administration (NMPA) in China, and its combination therapy indication is still in Phase II [1] Group 2 - The competitive landscape shows that PD-1/VEGF dual antibodies are becoming a popular choice among pharmaceutical companies, with 3SBio's stock price rising over 9% following the announcement of the deal with Pfizer, leading to a market capitalization exceeding HKD 50 billion [2] - The global sales of the leading PD-1 drug, pembrolizumab (K drug), are projected to be around $25 billion in 2023 and $29 billion in 2024, making it a significant competitor for new entrants like SSGJ-707 [3] - The head-to-head clinical trial results of another PD-1/VEGF dual antibody, Ivosidenib, against pembrolizumab have shown a median PFS of 11.14 months compared to 5.82 months for pembrolizumab, indicating potential advantages for dual antibodies [3] Group 3 - The current treatment guidelines recommend pembrolizumab as a first-line therapy for advanced non-squamous NSCLC, particularly for patients with high PD-L1 expression [4] - The approval process for new drugs requires demonstrating superior efficacy compared to existing treatments, which poses a challenge for both 3SBio and other companies developing similar products [4][5] - The financial implications for companies like 3SBio and Akeso are significant, as they invest heavily in R&D, with Akeso's R&D expenses exceeding 1 billion yuan in 2023 and 2024 [5]