Macroeconomic Research - The report highlights that the expectation of interest rate cuts in the US has increased following disappointing non-farm payroll data and lower-than-expected CPI growth, although there are contradictions in the inflation data [2] - Domestic economic indicators show that both production and demand faced pressure in July, with investment decline being the most significant drag on domestic demand [3] - The report notes that while CPI and PPI growth remains low year-on-year, there has been a slight improvement in month-on-month growth due to factors such as holiday travel and international commodity price changes [3] Fixed Income Research - The bond market has shown weak performance, with the yield curve steepening, influenced by factors such as the pause in US-China tariff implementation and rising risk appetite in the equity market [7] - The report indicates that the issuance of government bonds has increased, with a total issuance of 49 bonds amounting to 783.2 billion yuan during the reporting period [6] - The liquidity remains loose, with the central bank's net absorption exceeding 500 billion yuan, and the report anticipates limited disturbances to the bond market in the near term [8] Industry Research - The medical device sector is gaining attention, with a focus on opportunities within the related industrial chain, driven by recent policy adjustments in the national medical insurance and drug lists [9] - The report mentions several companies making significant progress, such as Rongchang Bio achieving primary research endpoints in clinical trials and Fuhong Hanlin's drug registration application being accepted [10] - The overall performance of the pharmaceutical and biotechnology sector has been positive, with the industry index showing a 1.97% increase during the reporting week, outperforming other sub-sectors [10]

Major Events - Zhonghui Biotech-B (02627) received 4007.64 times subscription for its public offering in Hong Kong, with a share price of HKD 12.9 [1] - Boan Biotech (06955) received approval for its Dulatide Injection Bo You Ping® to be marketed in China [1] - Huajian Medical (01931) signed a global strategic cooperation framework agreement with HashKey Group, a leading digital asset financial services group [1] - International Commercial Settlement (00147) plans to establish a joint venture to engage in cryptocurrency-related businesses [1] - Binhai Service (03316) intends to establish a strategic partnership with Yupan Intelligent in AI development and robotics applications [1] - Banan Group (01263) proposed to change its secondary listing status on the Singapore Exchange to a primary listing [1] - Pulin Chengshan (01809) resumed production at its tire manufacturing base in Thailand [1] Financial Performance - Fuzhikang Group (02038) reported a mid-term profit attributable to shareholders of USD 6.165 million, turning from loss to profit [1] - HKT (00215) reported a mid-term profit attributable to shareholders of HKD 6 million, also turning from loss to profit [1] - Reshaping Energy (02570) reported a mid-term loss of HKD 333 million, a decrease of 28.66% year-on-year [1] - China Heart-to-Heart Fertilizer (01866) reported a mid-term profit attributable to the parent company of approximately HKD 599 million, a decrease of 12.77% year-on-year [1] - Tongchen Group (00258) issued a profit warning, expecting a significant increase in mid-term after-tax comprehensive profit by approximately 6 to 7 times [1] - Greentown China (03900) issued a profit warning, expecting a 90% decrease in mid-term profit attributable to shareholders [1] - Shougang Resources (00639) issued a profit warning, expecting a 52% to 50% decrease in comprehensive profit attributable to shareholders for the first half of the year [1] - Maoyan Entertainment (01896) expects a year-on-year revenue increase of approximately 10.6% to 15.2%, reaching HKD 2.4 billion to 2.5 billion [1] - Sunshine Paper (02002) issued a profit warning, expecting a 55% to 65% decrease in mid-term profit attributable to shareholders [1] - Sunny Optical Technology (02382) reported July mobile lens shipments of approximately 98.565 million units, a 3.7% increase month-on-month but a 14.6% decrease year-on-year [1] - Longfor Group (00960) achieved a total contract sales amount of RMB 41.01 billion in the first seven months [1] - New天绿色能源 (00956) completed a power generation volume of approximately 9.0944 million MWh in the first seven months, an increase of 9.57% year-on-year [1] - GAC Group (02238) reported July automobile sales of 119,500 units, a year-on-year decrease of 15.38% [1] - Shimao Group (00813) achieved a total contract sales amount of approximately RMB 15.51 billion in the first seven months [1]

Core Insights - The company has received approval from the National Medical Products Administration for its self-developed product, Boyouping (Dulaglutide Injection), aimed at blood sugar control in adult patients with type 2 diabetes, making it the first and only approved biosimilar of Trulicity globally [1][3] - Boyouping is developed in collaboration with Shanghai Pharmaceuticals Holding Co., Ltd., which will handle its commercialization in mainland China [1][4] Company Development - The complexity of the manufacturing process for Dulaglutide, a peptide-Fc fusion protein, presents significant challenges in developing its biosimilar, but the company has leveraged its expertise in Chemistry, Manufacturing, and Controls (CMC) to overcome these hurdles [2] - The company has established advanced platforms for process development and quality control, enabling it to successfully navigate CMC technical challenges and achieve market approval for Boyouping [2] Clinical Research - The development of Boyouping adhered to the biosimilar guidelines of China, the US, and the EU, confirming its overall similarity to Trulicity through a series of rigorous studies [3] - Key clinical studies comparing Boyouping and Trulicity in China demonstrated that Boyouping effectively lowers blood sugar and weight, with no clinically significant differences in safety and immunogenicity [3] Market Potential - China has the highest number of diabetes patients globally, accounting for over 25% of the total, with projections indicating approximately 148 million adult diabetes patients in China and 589 million worldwide by 2024 [4] - The GLP-1 drug market in China is expected to reach approximately 6.376 billion RMB in 2024, driven by the increasing patient demand [4] - The global sales of Trulicity are projected to be around 5.25 billion USD in 2024, highlighting the significant market opportunity for Boyouping [4]