Group 1 - The stock of Beihai Kangcheng-B (01228) has surged over 9%, with a remarkable year-to-date increase of 16 times, currently trading at 2.4 HKD with a transaction volume of 16.13 million HKD [1] - In the first half of the year, Beihai Kangcheng reported revenues of 22.248 million HKD, a decrease of 50.33% year-on-year, while achieving a profit of 59.238 million HKD, compared to a loss of 247 million HKD in the same period last year [1] - The revenue decline is attributed to the company's strategic focus on rare diseases since 2021, with the termination of the distribution agreement for the product He Li An in Taiwan by the end of 2024, leading to a revenue drop of 1.7 million HKD or 6.9% excluding sales in Taiwan [1] Group 2 - In August, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares in Beihai Kangcheng [2] - The agreement includes a commercial service contract that grants Baiyang's subsidiary promotional rights for specific Beihai Kangcheng products in mainland China, Hong Kong, and Macau [2] - Beihai Kangcheng's three rare disease products were included in the preliminary list of innovative drugs for commercial insurance published by the National Healthcare Security Administration on August 12, including the recently approved long-term enzyme replacement product for Gaucher disease [2]

Core Viewpoint - The 18A companies in the Hong Kong stock market have experienced a significant turnaround in 2025, showcasing a surge in listings, stock price increases, and international expansion opportunities [1][2][4]. Listing Wave - In 2025, there has been a notable wave of listings for 18A companies, with 10 out of 58 newly listed companies being 18A firms, many of which performed exceptionally well on their debut [2]. - The enthusiasm from investors is evident, with companies like Zhonghui Biotechnology and Yinnuo Pharmaceutical experiencing over 4000 times and 5341 times oversubscription, respectively [2]. - There are currently 49 18A companies that have submitted applications to the Hong Kong Stock Exchange, with at least 20 awaiting approval for listing [2][4]. Price Surge - Among the 77 listed 18A companies, 17 have seen stock price increases exceeding 200%, while 26 have risen between 100% and 200% since the beginning of 2025 [5]. - Beihai Kangcheng has recorded the highest increase at 1644%, although its total market capitalization remains relatively small at approximately 1.1 billion HKD [5][6]. International Expansion - The 18A companies are leveraging unique "outbound" strategies by licensing their products to well-known overseas pharmaceutical companies, which enhances their revenue potential and showcases their technological advancements [7]. - For instance, Rongchang Biotechnology has licensed its RC28-E injection to Santen China for a total of 2.5 billion HKD in upfront payments and additional milestone payments [8]. - The trend of outbound licensing is indicative of the rapid progress of Chinese pharmaceutical companies, transitioning from imitation to innovation, and establishing a competitive edge in the global market [9][10].

Core Viewpoint - The 18A companies in the Hong Kong stock market have experienced a significant turnaround in 2023, showcasing a surge in listings, stock price increases, and international expansion opportunities [1]. Listing Wave - In 2023, the Hong Kong stock market saw a wave of 18A company listings, with 10 out of 58 newly listed companies being 18A firms, many of which performed exceptionally well on their debut [3]. - Notably, five of the top six companies with the highest first-day gains were 18A companies, indicating a growing investor interest [3]. - The IPO of Zhonghui Biotechnology on August 11 received over 4,000 times oversubscription, raising over 200 billion HKD, while Yinnuo Pharmaceutical's IPO on August 15 garnered over 300 billion HKD with 5,341 times oversubscription [3]. Price Surge - Among the 77 listed 18A companies, 17 have seen stock price increases exceeding 200%, with 26 others rising between 100% and 200% since the beginning of 2023 [8]. - The highest price increase was recorded by Beihai Kangcheng, which surged by 1,644%, although its total market capitalization remains relatively small at approximately 1.1 billion HKD [8]. International Expansion - 18A companies are increasingly adopting a unique "outbound" model by licensing their products to well-known overseas pharmaceutical companies, which has generated investor confidence in their future profitability [12]. - For instance, Rongchang Biotechnology announced a licensing agreement with Santen China, receiving an upfront payment of 250 million HKD and potential milestone payments totaling up to 520 million HKD [13]. - Similarly, Lepu Biopharma disclosed a licensing agreement with ArriVent, which could yield up to 1.2 billion USD in total payments [13]. Industry Growth - The rapid advancement of Chinese pharmaceutical companies is reflected in their transition from imitation to innovation, with a growing number of original drug candidates that are competitive on a global scale [15]. - As of the first quarter of 2025, China accounted for nearly 60% of the global transaction value for outbound licensing, indicating its emergence as a center for innovative drug transactions [15].

Core Viewpoint - The 18A companies in the Hong Kong stock market have experienced a significant turnaround in 2023, showcasing a surge in listings, stock price increases, and international expansion opportunities [1]. Listing Wave - In 2023, there has been a notable listing wave for 18A companies, with 10 out of 58 newly listed companies being 18A firms, many of which performed exceptionally well on their debut [3]. - The IPO of Zhonghui Biotechnology on August 11 received over 4000 times oversubscription, with total subscription amount exceeding 200 billion HKD, while Yinnuo Pharmaceutical's IPO on August 15 saw over 300 billion HKD in subscription [3]. - The top six companies with the highest first-day gains included five 18A companies, indicating strong investor interest [3]. Price Surge - Among the 77 listed 18A companies, 17 have seen stock price increases exceeding 200%, with 26 companies experiencing gains between 100% and 200% since the beginning of 2023 [8]. - The highest price increase was recorded by Beihai Kangcheng, with a staggering 1644% rise, although its market capitalization remains relatively small at approximately 1.1 billion HKD [8]. International Expansion - The 18A companies are leveraging unique "outbound" models to generate revenue through licensing agreements with international pharmaceutical firms, despite many still not generating significant income [12]. - Rongchang Biotechnology announced a licensing agreement with Santen China, which includes a non-refundable upfront payment of 250 million HKD and potential milestone payments totaling up to 520 million HKD [12]. - Lepu Biopharma disclosed a licensing agreement with ArriVent, which could yield up to 1.2 billion USD in total payments, including upfront and milestone payments [13]. Industry Progress - The impressive performance of biopharmaceutical companies is attributed to the rapid advancement of Chinese pharmaceutical firms, transitioning from imitation to innovation since 2015 [14]. - Chinese innovative drug companies are now actively developing original drugs, with a significant increase in the number of clinical trials and a growing international competitive edge [15]. - By Q1 2025, China accounted for nearly 60% of global innovative drug licensing transactions, marking its emergence as a center for innovative drug deals [15].

Group 1 - The core viewpoint of the article highlights the significant stock price increase of Beihai Kangcheng-B (01228), which has surged over 12% recently, bringing its year-to-date increase close to 20 times [1] - As of the report, the stock price reached 2.77 HKD with a trading volume of 50.08 million HKD [1] - On August 13, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares in Beihai Kangcheng [1] Group 2 - The agreement also includes an exclusive commercialization service contract, enhancing strategic collaboration between Beihai Kangcheng and Baiyang Pharmaceutical [1] - Baiyang's subsidiary will gain promotional rights for specific products of Beihai Kangcheng in mainland China, Hong Kong, and Macau [1] - In 2025, the National Healthcare Security Administration will introduce a "Commercial Insurance Innovative Drug Directory," which has begun the application process as of July 11 [1] Group 3 - Beihai Kangcheng's three products, namely Geruneng (Injectable Vira Glycosidase β), Mairuibai (Chloramphenicol Oral Solution), and Hairuisi (Aidu Sulfate Esterase β Injection), passed the preliminary review on August 12, which is expected to accelerate market access [1] - The preliminary review list is considered significant for Beihai Kangcheng, as inclusion in the commercial insurance innovative drug directory would provide insurance support for the drugs, potentially reducing the economic burden on patients and improving product accessibility [1]

Core Viewpoint - Beihai Kangcheng-B (01228) has seen a significant increase in stock price, rising over 12% recently and nearly 20 times year-to-date, indicating strong market interest and potential growth opportunities for the company [1] Group 1: Stock Performance - As of the latest report, Beihai Kangcheng's stock price is at 2.77 HKD, with a trading volume of 50.08 million HKD [1] - The stock has experienced a year-to-date increase of approximately 1900% [1] Group 2: Strategic Partnerships - On August 13, Beihai Kangcheng announced a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will invest 100 million HKD to acquire shares [1] - The partnership includes an exclusive commercialization service agreement, enhancing strategic collaboration between the two companies [1] Group 3: Market Access and Product Approval - Beihai Kangcheng's three products have passed the initial review for the "Commercial Insurance Innovative Drug Directory" set by the National Medical Insurance Administration, which was officially launched on July 11 [1] - The products include Gerunine (Injectable Vira Glycosidase β), Mai Ruibei (Chloramphenicol Oral Solution), and Hai Ruisi (Aidu Sulfate Esterase β Injection), which are expected to accelerate market access [1] - Inclusion in the directory would allow these drugs to receive commercial insurance support, potentially reducing the economic burden on patients and improving product accessibility [1]

Core Viewpoint - Beihai Kangcheng-B (01228) has seen a significant increase in its stock price, with a year-to-date rise exceeding 1500% as of the latest report, reflecting strong market interest and investor confidence [1] Group 1: Stock Performance - Beihai Kangcheng-B's stock price rose nearly 17%, reaching HKD 2.23, with a trading volume of HKD 41.075 million [1] - The cumulative increase in stock price for the year has surpassed 1500% [1] Group 2: Strategic Partnerships - Beihai Kangcheng has entered into a share subscription agreement with Baiyang Pharmaceutical, where Baiyang will subscribe for shares valued at approximately HKD 100 million at a price of HKD 1.34 per share [1] - The companies have also signed an exclusive commercialization service agreement, enhancing their strategic collaboration [1] Group 3: Product Development and Regulatory Approval - Three rare disease products from Beihai Kangcheng have passed the preliminary review for the commercial insurance innovative drug directory announced by the National Healthcare Security Administration [1] - The products include: - Goryenin (injectable velaglucerase beta) for long-term enzyme replacement therapy for patients aged 12 and above with Type I and III Gaucher disease, approved for market in May [1] - Mairuibai (oral chloramphenicol) for treating cholestatic pruritus in ALGS/PFIC [1] - Haierisi (injectable idursulfase beta) for treating Mucopolysaccharidosis Type II [1]

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1]. Core Insights - The development of trispecific antibodies (TsAbs) is accelerating, with a focus on companies such as Zai Lab and Sanofi [18]. - The report highlights the performance of various sub-sectors within the industry, ranking them as follows: innovative drugs > CXO > traditional Chinese medicine > medical devices > pharmacies > pharmaceutical commerce [12][13]. Summary by Sections Industry Performance - The A-share pharmaceutical index has increased by 1.3% this week and 2.5% year-to-date, outperforming the CSI 300 by 0.2% and 3.6% respectively [11]. - The H-share biotechnology index has shown a 0.3% increase this week and a 27.8% increase year-to-date, outperforming the Hang Seng Technology Index by -1.7% and 9.6% respectively [11]. Specific Company Recommendations - From a growth perspective, the report recommends focusing on innovative drug companies such as Zai Lab, Sanofi, and others [13]. - For undervalued stocks, it suggests looking into traditional Chinese medicine companies like Zai Lab and Dong-E E-Jiao [13]. - High dividend yield stocks are recommended from the traditional Chinese medicine sector, including Jiangzhong Pharmaceutical and Yunnan Baiyao [13]. Trispecific Antibodies Development - TsAbs are engineered antibodies capable of binding to three different antigen targets, offering enhanced therapeutic potential in cancer immunotherapy [18]. - Currently, no TsAbs have been approved for market, but several companies, including Zai Lab and Sanofi, are actively developing these therapies [18][32]. Clinical Progress - The report outlines the clinical stages of various TsAbs, noting that Zai Lab's ZG006 is among the leading candidates in clinical trials [32]. - Other notable candidates include those from companies like Sanofi and IBI3003 from Innovent Biologics, which are also in advanced clinical stages [32].

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1]. Core Insights - The development of trispecific antibodies (TsAbs) is accelerating, with a focus on companies such as Zai Lab and Sanofi [18]. - The report highlights the performance of various sub-sectors within the industry, ranking them as follows: innovative drugs > CXO > traditional Chinese medicine > medical devices > pharmacies > pharmaceutical commerce [12][13]. - Specific stock selection strategies are recommended based on growth potential, valuation, dividend yield, and left-side investment opportunities [13]. Summary by Sections Industry Performance - The A-share pharmaceutical index has increased by 1.3% this week and 2.5% year-to-date, outperforming the CSI 300 by 0.2% and 3.6% respectively [11]. - The H-share biotechnology index has shown a 0.3% increase this week and a 27.8% increase year-to-date, outperforming the Hang Seng Technology Index by -1.7% and 9.6% respectively [11]. Trispecific Antibodies - TsAbs are engineered antibodies capable of binding to three different antigen targets, offering enhanced therapeutic potential in cancer immunotherapy [18]. - Currently, no TsAbs have been approved for market, but several companies, including Zai Lab and Sanofi, are actively developing these therapies [18][32]. Stock Recommendations - Growth-oriented stock picks focus on innovative drug companies such as Zai Lab, Sanofi, and others [13]. - For undervalued stocks, the report recommends traditional Chinese medicine companies like Zai Lab and Dong-E E-Jiao [13]. - High-dividend stocks are primarily found in the traditional Chinese medicine sector, with companies like Jiangzhong Pharmaceutical and Yunnan Baiyao highlighted [13]. Clinical Development - The report outlines the clinical stages of various trispecific antibody drugs, noting that the fastest progress is seen in Merck's Restoret, currently in phase 2b/3 trials [31]. - Domestic companies are also advancing in this area, with Zai Lab's ZG006 and others in clinical stages [32].