Group 1 - The report highlights that only one of the six sub-industries in the pharmaceutical index recorded positive returns in the recent week [2] - The innovative drug industry in China is characterized by high investment, high risk, and long development cycles, focusing on cutting-edge technologies such as targeted therapy and gene editing [3][8] - The market size of China's innovative drug industry is projected to grow from approximately 819.8 billion RMB in 2020 to 1.14 trillion RMB in 2024, with a compound annual growth rate of 8.53%, and is expected to reach 1.22 trillion RMB by 2025 [3][9] Group 2 - The number of approved innovative drugs in China has significantly increased from 3 in 2015 to 48 in 2024, with 50 new first-class innovative drugs expected to be added to the medical insurance catalog in 2025 [9][21] - The report indicates that the innovative drug sector is becoming the core driving force for the pharmaceutical industry's upgrade, transitioning China from a "generic drug powerhouse" to an "innovative drug powerhouse" [9][21] - The report notes that the innovative drug industry is currently facing both opportunities and challenges, including policy support and intensified competition, which may compress profits [10] Group 3 - The recent addition of 114 new drugs to the national medical insurance catalog includes 50 first-class innovative drugs, with a success rate of 88% [21] - The report emphasizes that the central economic work conference has outlined key tasks for the upcoming year, including optimizing drug procurement and deepening medical insurance payment reforms [25] - The establishment of the medical device technology review center in the Guangdong-Hong Kong-Macao Greater Bay Area has led to a 150% increase in the approval of innovative medical devices over the past five years [26]

Group 1 - The 2025 National Medical Insurance Drug List includes 114 new drugs, with 50 being innovative drugs, showing an overall success rate of 88%, an increase from 76% in 2024 [1] - Nine innovative drugs from the Sci-Tech Innovation Board have been included in the medical insurance list, highlighting the strength and vitality of these companies [1] - The first version of the Commercial Health Insurance Innovative Drug List has been released, complementing the basic medical insurance and providing new possibilities for patients to access cutting-edge treatments [4] Group 2 - Nearly 90% of new drugs approved by Sci-Tech Innovation Board companies have received medical insurance support, indicating a shift towards value realization for these companies [2] - The drug "Junshi Biological's Junshida" is the only domestic PCSK9-targeted drug for patients intolerant to statins, now included in the medical insurance list [2] - The successful renewal negotiations for several innovative drugs confirm their clinical value and market position, benefiting a wider patient population [6][7] Group 3 - Innovative drugs from companies like Baiji Shenzhou and Junshi Biological have been recognized for their clinical value and patient benefits, leading to their inclusion in the medical insurance list [7] - The R&D investment of Sci-Tech Innovation Board companies reached a new high in the first three quarters of 2025, with a year-on-year increase of over 10%, indicating a strong commitment to innovation [7] - The cycle of "R&D investment - innovation results - insurance support - market return - reinvestment in R&D" is being established and strengthened within the industry [7]

Core Viewpoint - Junshi Biosciences (01877) saw a morning increase of over 3%, currently up 3.23% at HKD 24.28, with a trading volume of HKD 3.177 million, following the announcement of new indications for its products being included in the National Medical Insurance Directory [1] Group 1: Product Developments - Junshi Biosciences announced that its product Toripalimab injection (brand name: Tuoyi®, product code: JS001) has received two new indications, and its product Engreitzumab injection (brand name: Junshida®, product code: JS002) has been successfully included in the National Medical Insurance Directory (2025) under the Class B category [1] - The new National Medical Insurance Directory will officially take effect on January 1, 2026 [1] Group 2: Market Position - As of the announcement date, the company has four commercialized products, including Tuoyi®, Adalimumab injection (brand name: Junmaikang®, product code: UBP1211), Dexamethasone Hydrochloride tablets (brand name: Mindewi®, product code: VV116/JT001), and Junshida®, all of which have been included in the National Medical Insurance Directory [1] - Tuoyi® is the only anti-PD-1 monoclonal antibody in the directory that is approved for the treatment of renal cancer, triple-negative breast cancer, and melanoma, with all 12 approved indications in mainland China included in the National Medical Insurance Directory [1] - Junshida® is newly included and is the only domestic PCSK9-targeted drug in the new directory for patients intolerant to statins [1]

Core Viewpoint - Junshi Biosciences (01877) saw a morning increase of over 3%, currently up 3.23% at HKD 24.28, with a trading volume of HKD 3.177 million. The company announced that its products, Toripalimab injection (brand name: Tuoyi, product code: JS001) and Engreztinib injection (brand name: Junshida, product code: JS002), have been included in the National Medical Insurance Catalog (2025) under Category B, effective January 1, 2026 [1]. Group 1 - The company has successfully added two new indications for Toripalimab and has included Engreztinib in the National Medical Insurance Catalog [1]. - All 12 approved indications for Toripalimab in mainland China have been included in the National Medical Insurance Catalog, making it the only anti-PD-1 monoclonal antibody in the catalog for the treatment of renal cancer, triple-negative breast cancer, and melanoma [1]. - Engreztinib is newly included in the catalog and is the only domestic PCSK9-targeted drug for patients intolerant to statins in the new version of the catalog [1].

Core Viewpoint - The company's performance in the first three quarters of 2025 aligns with expectations, showing significant revenue growth and reduced net loss compared to the previous year [1][2]. Financial Performance - Revenue for 1-3Q25 reached 1.806 billion yuan, representing a year-on-year increase of 42.1% [1]. - The net profit attributable to the parent company was -596 million yuan, reflecting a year-on-year reduction in loss of 35.7% [1]. Development Trends - The core product, Tuoyi, continues to see strong sales growth, with domestic market revenue of 1.495 billion yuan in 1-3Q25, up approximately 40% year-on-year [1]. - Tuoyi has received approval for 12 indications in China, with a new indication for HER2-expressing urothelial carcinoma under review by NMPA [1]. - Tuoyi has been approved in 40 countries and regions globally, including Hong Kong, the US, the EU, India, and the UK, with expectations for continued revenue contribution as more indications are approved [1]. Clinical Research and Innovation - The FDA has approved the initiation of clinical research for JS207, a PD-1/VEGF dual-target drug, marking a significant step in its development for operable patients [1]. - The company showcased over 20 research studies at the 2025 ESMO conference, with two studies selected for oral presentations, indicating strong engagement in international academic forums [2]. - Upcoming data updates for JS107 and JS207 at the 2025 ESMO Asia conference highlight the company's commitment to advancing cancer immunotherapy [2]. Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025 and 2026 at -917 million yuan and -315 million yuan, respectively [2]. - The company retains an "outperform" rating based on DCF valuation, with a target price of 36.98 HKD, indicating a potential upside of 47.6% from the current stock price [2].

Market Overview - On September 1, A-shares saw all three major indices rise, marking a positive start to September. The Shanghai Composite Index increased by 0.46%, the Shenzhen Component Index rose by 1.05%, and the ChiNext Index gained 2.29%, with over 3,200 stocks in the market rising [1] - The main broad-based indices included the STAR 100, which rose by 2.34%, leading the gains [1] Sector Performance - In the sector performance, the telecommunications sector led with a rise of 5.22%, followed by the comprehensive sector at 4.27%, and non-ferrous metals at 3.46%. Conversely, non-bank financials fell by 1.28%, banks by 1.03%, and household appliances by 0.54% [7] Key Highlights in Biotechnology - The innovative drug sector experienced significant gains, with several companies reporting strong mid-year results. Notably, Jingtai Holdings reported a 403.8% year-on-year revenue increase for H1, driven by drug discovery collaborations and substantial orders from top global pharmaceutical companies [7] - Junshi Biosciences saw an 18% increase in R&D investment year-on-year, with core product sales exceeding 800 million yuan and a $350 million dual-antibody licensing agreement with a multinational pharmaceutical company [7] - Pfizer plans to invest $13 billion in business development focused on oncology, with its Chief Strategy Officer visiting China to explore collaboration opportunities [7] Investment Insights - Pacific Securities suggests focusing on the pharmaceutical sector due to the impact of market pricing power and funding changes, particularly in AI healthcare and innovative drugs. The report emphasizes that the liquidity and risk appetite are expected to enhance the visibility of biotech catalysts [8] - In the non-ferrous metals sector, Goldman Sachs' research indicates investor optimism regarding China's 2025 GDP growth target, with an upward adjustment in short-term export expectations. This has led to increased attention on cyclical sectors like non-ferrous metals [8] - The report from Minmetals Securities highlights that the non-ferrous metals industry has reached a cost-cutting bottleneck, necessitating attention to corporate decision-making impacts on lithium supply and costs [8] Related Products - The report mentions various ETFs related to the non-ferrous metals sector, including ETF 159880 and its corresponding off-market links [9]

Core Viewpoint - Junshi Biosciences (01877) reported a significant increase in revenue and a reduction in net loss for the first half of 2025, indicating a positive trend in its commercial drug sales and operational efficiency [1] Financial Performance - The company achieved a revenue of approximately 1.168 billion yuan, representing a year-on-year growth of 48.64% [1] - The net loss attributable to shareholders was about 413 million yuan, which is a reduction of approximately 36% compared to the previous year [1] - Basic loss per share was reported at 0.42 yuan [1] Revenue Growth Drivers - Revenue growth was primarily driven by the sales of commercialized drugs, with sales in the domestic market reaching 954 million yuan, an increase of about 42% year-on-year [1] - The company is focusing on enhancing quality and efficiency while returning value, concentrating on competitive and innovative R&D projects [1] Market Expansion and Future Outlook - Junshi Biosciences' drug, Tuoyi, has been approved for 12 indications in China and has received approvals in 40 countries and regions including Hong Kong, the US, EU, India, the UK, Jordan, Australia, Singapore, UAE, and Kuwait [1] - The company is expected to see accelerated global sales of Tuoyi as new indications for first-line liver cancer and melanoma are anticipated to be approved in the first half of 2025, along with further approvals and integration into health insurance systems [1]

Core Viewpoint - Junshi Biosciences (01877) reported a significant increase in revenue and a reduction in net loss for the first half of 2025, indicating positive growth and operational improvements in its commercialized drug sales [1] Financial Performance - The company achieved a revenue of approximately 1.168 billion yuan, representing a year-on-year growth of 48.64% [1] - The net loss attributable to shareholders was about 413 million yuan, which narrowed by approximately 36% compared to the previous year [1] - Basic loss per share was reported at 0.42 yuan [1] Revenue Drivers - Revenue growth was primarily driven by the sales of commercialized drugs, with sales in the domestic market reaching 954 million yuan, a year-on-year increase of about 42% [1] - The reduction in losses was attributed to the increase in sales revenue of commercialized drugs compared to the same period last year [1] Strategic Initiatives - The company is implementing a "quality improvement and efficiency enhancement" action plan, focusing on more competitive and innovative R&D projects [1] - Efforts are being made to accelerate clinical development, reduce production costs, and enhance sales efficiency to further decrease losses [1] Market Expansion - Currently, the drug Tuoyi has been approved for 12 indications in China and has received approvals in 40 countries and regions, including Hong Kong, the US, the EU, India, the UK, Jordan, Australia, Singapore, the UAE, and Kuwait [1] - The global commercialization value of Tuoyi is gradually becoming evident, with expectations for accelerated sales as new indications are approved and enter the insurance system [1]

Core Viewpoint - The company reported a slight revenue increase in 1H25, driven by strong sales growth of its core product, Tuoyi, while reducing its net loss compared to the previous year [1]. Group 1: Financial Performance - The company's revenue for 1H25 reached 1.168 billion yuan, representing a year-on-year growth of 46% [1]. - The net loss attributable to shareholders was 413 million yuan, which is a reduction in loss by 232 million yuan compared to the previous year [1]. Group 2: Product Development and Market Trends - Tuoyi's sales in the domestic market amounted to 954 million yuan in 1H25, showing a year-on-year increase of 42% [1]. - Tuoyi has received approval for 12 indications in China and is approved in 40 countries and regions, indicating a growing global commercialization value [1]. - The company expects accelerated global sales of Tuoyi as new indications enter the market and more countries approve its commercialization [1]. Group 3: Pipeline and Clinical Research - The company is focusing on the potential of its PD-1/VEGF dual antibody, JS207, which is currently in Phase II clinical trials for various cancers [2]. - The DKK1 monoclonal antibody has shown promising clinical data and is also in Phase II clinical trials, leading in global research progress [2]. - The company has established a pipeline covering over 50 innovative products across five therapeutic areas, with nearly 30 products in clinical research [2]. Group 4: Profit Forecast and Valuation - The company has adjusted its 2025 profit forecast from a loss of 662 million yuan to a loss of 917 million yuan, and introduced a 2026 forecast of a loss of 315 million yuan [3]. - The target price has been raised by 101.0% to 36.98 HKD, indicating a potential upside of 21.1% from the current stock price [3].

Core Viewpoint - CICC has lowered the 2025 profit forecast for Junshi Biosciences (01877) from a loss of 662 million yuan to a loss of 917 million yuan, and introduced a 2026 profit forecast of a loss of 315 million yuan, while maintaining an outperform rating due to positive R&D progress in PD-1/VEGF and DKK1 monoclonal antibodies, raising the target price by 101% to HKD 36.98, indicating a 21.1% upside from the current stock price [1] Group 1 - The company's 1H25 revenue slightly exceeded expectations, with operating income of 1.168 billion yuan, a year-on-year increase of 46%, and a net loss attributable to shareholders of 413 million yuan, a reduction in loss of 232 million yuan year-on-year [2] - The sales revenue of Tuoyi in the domestic market reached 954 million yuan in 1H25, a year-on-year increase of 42%, with 12 approved indications in China and approvals in 40 countries and regions, indicating a gradual realization of global commercialization value [3] Group 2 - The PD-1/VEGF bispecific antibody JS207 is in Phase II clinical trials for various cancers, showing competitive advantages in tumor efficacy due to its unique molecular design [4] - The DKK1 monoclonal antibody has released clinical data for colorectal and gastric cancers at the 2025 AACR and is also in Phase II clinical trials, leading in global R&D progress [4] Group 3 - The company has established an innovative product pipeline covering five major therapeutic areas with over 50 products, advancing nearly 30 clinical studies, with expectations for several products to enter critical registration clinical trials by 2025 [5]