Company Background - Founded in 1993, the company is a leading biopharmaceutical firm in China with extensive experience in R&D, production, and sales of biological drugs. It has developed a rich product portfolio and pipeline in various therapeutic areas including nephrology, hematology, oncology, autoimmune diseases, and dermatology [1] - The company has strong domestic commercialization capabilities, with core products such as TPIAO, EPO, Yisaipu, and Mandi holding high market shares, driving continuous revenue growth [1] Oncology Focus - The SSGJ-707 molecule is expected to become a cornerstone therapy in global cancer immunotherapy, with multiple first-in-class (FIC) molecules entering clinical stages. A significant licensing agreement with Pfizer was established in May-July 2025, where Pfizer will pay $1.4 billion upfront and up to $4.8 billion in milestone payments, setting a record for domestic PD-(L)1/VEGF dual antibodies [1][2] - The PD-(L)1 inhibitors face challenges in cold tumors and efficacy improvements, but the dual antibody approach has shown potential in head-to-head trials against existing therapies, indicating a market potential exceeding $100 billion [1] Clinical Development Plans - Pfizer's strategy for SSGJ-707 includes launching seven global clinical trials, positioning it as a foundational therapy across various cancers. Upcoming trials include 1L NSCLC Phase III, 1L mCRC Phase III, and others, with plans to explore over 10 additional indications by 2026 [2] - The potential market for SSGJ-707 could cover over 350,000 patients in the U.S., indicating a substantial market opportunity [2] Commercialization Strength - The company has a strong commercial capability with its flagship product TPIAO projected to generate revenue of 5.06 billion yuan in 2024. TPIAO is the only commercialized rhTPO globally and is highly recommended in treatment guidelines [3] - Despite competitive pressures, the company maintains a leading position in the rhEPO market, with expected sales of 1.019 billion yuan from its dual-brand strategy in 2024, capturing a 42% market share [3] Financial Projections - Revenue forecasts for the company are estimated at 18.52 billion yuan in 2025, 11.55 billion yuan in 2026, and 11.78 billion yuan in 2027, with net profits projected at 9.77 billion yuan, 3.72 billion yuan, and 3.28 billion yuan respectively. The company is rated with a strong recommendation based on these projections [4]

肿瘤锚定下一代IO基石疗法，早研FIC分子进入临床验证期;自免管线进展迅速，即将进入收获期 智通财经APP获悉，招商证券发布研报称，首次覆盖给予三生制药（01530）"强烈推荐"评级，PD- (L)1/VEGF双抗是下一代IO治疗的核心药物，SSGJ-707分子设计独特、早期临床数据具备BIC潜力。辉 瑞14亿美元前端付款+最高48亿美元里程碑付款+1亿美元股份认购获得全球权益，充分认可707分子潜 力和公司研发实力，并且随着辉瑞多项全球临床的快速推进、后续更多ADC联用的临床开启，公司估 值空间有望持续打开。公司业绩基本盘稳健，产品管线衔接有序，中长期成长动力充沛。 招商证券主要观点如下： 公司背景 基本盘扎实，创新周期再加速。三生制药成立于1993年，是国内领先的生物药物公司，在研发/生产/销 售生物药方面具有丰富的经验。经过30多年发展，公司在肾科、血液及肿瘤、自免、毛发皮肤等治疗领 域布局了丰富的产品和在研管线。同时公司具备强大的国内商业化能力，核心产品特比澳、EPO、益赛 普、蔓迪在所处赛道占据高市占率，驱动业绩持续增长。 升板产品：主力大单品竞争格局佳，拓展适应症挖掘增长空间。特比澳为公司核心大单 ...

Investment Rating - The report gives a "Strong Buy" rating for the company [2]. Core Views - The PD-(L)1/VEGF dual antibody is positioned as a core drug for next-generation immuno-oncology treatments, with the SSGJ-707 molecule showing unique design and early clinical data indicating its potential as a best-in-class (BIC) candidate. The collaboration with Pfizer, involving an upfront payment of $1.4 billion and potential milestone payments of up to $4.8 billion, reflects the recognition of SSGJ-707's potential and the company's R&D capabilities [1][8][48]. - The company's financial performance is stable, with a well-structured product pipeline and strong long-term growth drivers [1][8]. Summary by Sections Company Overview - Established in 1993, the company is a leading biopharmaceutical firm in China, focusing on R&D, production, and sales of biological drugs. It has developed a rich product and pipeline portfolio across various therapeutic areas, including nephrology, oncology, autoimmune diseases, and dermatology [13][16]. Oncology Pipeline - The SSGJ-707 is expected to become a cornerstone in global cancer immunotherapy, with multiple first-in-class (FIC) molecules entering clinical stages. The collaboration with Pfizer is a significant milestone, with substantial financial backing and a strategic focus on expanding clinical trials [1][8][37]. - Clinical data for SSGJ-707 shows promising efficacy and safety profiles, with high overall response rates (ORR) in various cancer types, indicating its potential to address unmet medical needs in oncology [1][8][37][38]. Autoimmune Pipeline - The company has several pipelines nearing commercialization, with notable advancements in clinical trials for various autoimmune treatments. The IL-17A monoclonal antibody SSGJ-608 and IL-1β monoclonal antibody SSGJ-613 have received NDA acceptance, indicating progress towards market entry [8][19]. Commercialization Capability - The company demonstrates strong commercialization capabilities, with core products maintaining high market shares. The flagship product, TPIAO, is expected to generate significant revenue, supported by new indications and stable pricing strategies [8][19][30]. - The company is also expanding its product portfolio in the erythropoiesis-stimulating agent market, maintaining a leading position despite competitive pressures [8][19]. Financial Projections - Revenue projections for 2025-2027 are estimated at 185.2 billion, 115.5 billion, and 117.8 billion CNY, respectively, with corresponding net profits of 97.7 billion, 37.2 billion, and 32.8 billion CNY. The report anticipates a significant increase in revenue in 2025, followed by a decline in subsequent years [7][8].

Investment Rating - The report assigns a "Buy" rating for the stock, indicating a positive outlook for the company's performance [1][7]. Core Insights - The company reported a stable revenue of 4.36 billion yuan for the first half of 2025, with a net profit of 1.36 billion yuan, reflecting a year-on-year increase of 24.6% [4][5]. - The core products and subsidiary revenues are performing steadily, with significant contributions from various product lines [5]. - The licensing agreement for the 707 product with Pfizer is expected to enhance profits and reduce risks associated with global market expansion [6][7]. Company Overview - Latest closing price: HKD 30.94 - Total shares: 2.432 billion, with a market capitalization of HKD 75.2 billion - 52-week high/low: HKD 36.80 / HKD 5.43 - Debt-to-asset ratio: 25.51% - Price-to-earnings ratio: 27.4 [3]. Financial Projections - Revenue projections for 2024A, 2025E, 2026E, and 2027E are 9.108 billion, 19.723 billion, 10.840 billion, and 12.075 billion yuan respectively, with growth rates of 17%, 117%, -45%, and 11% [9]. - The net profit attributable to the parent company is projected to be 2.090 billion, 9.693 billion, 2.405 billion, and 2.762 billion yuan for the same years, with growth rates of 35%, 364%, -75%, and 15% [9]. - The expected earnings per share (EPS) for 2025 is 3.99 yuan, with a corresponding price-to-earnings ratio of 6.96 [9]. Product Development and Market Potential - The 707 product, a dual antibody targeting PD-1/VEGF, has shown promising clinical data and is expected to be a cornerstone in global oncology treatment [6][7]. - The product has received breakthrough therapy designation in China and is undergoing multiple clinical trials for various cancers [7].

Core Insights - The company reported stable revenue with an optimization in financial structure, achieving a revenue of 4.36 billion yuan in the first half of 2025, a slight decrease of 0.8% [1] - The gross profit was 3.72 billion yuan, down 2.1%, with a gross margin of 85.3%, reflecting a minor decline of 1.2 percentage points [1] - The net profit attributable to shareholders increased by 24.6% to 1.36 billion yuan, while the adjusted operating net profit rose by 2.1% to 1.14 billion yuan [1] Financial Performance - Research and development expenses amounted to 548 million yuan, an increase of 15.0%, with an R&D expense ratio of 12.6%, up 1.8 percentage points [1] - Sales expenses were 1.62 billion yuan, up 1.4%, with a sales expense ratio of 37.1%, an increase of 0.8 percentage points [1] - Management expenses rose significantly by 40.9% to 283 million yuan, with a management expense ratio of 6.5%, up 1.9 percentage points [1] - The company's interest-bearing debt and bonds saw a significant reduction, with the leverage ratio decreasing from 19.7% at the end of the previous year to 9.9% [1] Product Performance - The biopharmaceutical segment experienced a slight decline, with sales of the product Teibiao down 4.2% to 2.37 billion yuan, and EPO sales down 11.7% to 455 million yuan [2] - The subsidiary SanSheng Guojian's main products generated revenue of 642 million yuan, an increase of 7.6% [2] - The product Mandi maintained rapid growth, with sales increasing by 24.0% to 682 million yuan, while CDMO revenue surged by 76.1% to 100 million yuan [2] Strategic Developments - The company entered a significant collaboration with Pfizer regarding the PD1xVEGF dual antibody 707, with an upfront payment of 1.25 billion USD and potential milestone payments up to 4.8 billion USD, along with a double-digit percentage sales share [2] - Pfizer is expected to rapidly advance global clinical trials for 707, exploring various treatment methods across different tumor types [2] Investment Outlook - The company maintains a rating of "outperform" and forecasts net profits attributable to shareholders of 2.38 billion yuan, 2.71 billion yuan, and 3.07 billion yuan for 2025-2027, reflecting year-on-year growth rates of 13.9%, 13.7%, and 13.3% respectively [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][17]. Core Insights - The company has maintained stable revenue with a slight decline of 0.8% year-on-year, achieving a revenue of 4.36 billion yuan in the first half of 2025. The gross profit was 3.72 billion yuan, with a gross margin of 85.3%, down by 1.2 percentage points [1][8]. - The company reported a significant increase in net profit attributable to shareholders, reaching 1.36 billion yuan, which is a 24.6% increase year-on-year. Adjusted operating net profit was 1.14 billion yuan, up by 2.1% [1][8]. - The company has entered a significant collaboration with Pfizer regarding the PD1xVEGF dual antibody 707, with an upfront payment of 1.25 billion USD and potential milestone payments up to 4.8 billion USD, along with a double-digit percentage of sales revenue [2][14]. Financial Performance - In the first half of 2025, the company's R&D expenses were 548 million yuan, representing a 15.0% increase, with an R&D expense ratio of 12.6% [1][8]. - Sales expenses were 1.62 billion yuan, up by 1.4%, with a sales expense ratio of 37.1%. Management expenses increased significantly by 40.9% to 283 million yuan, with a management expense ratio of 6.5% [1][8]. - The company's leverage ratio improved significantly, decreasing from 19.7% at the end of the previous year to 9.9% [1][8]. Revenue and Profit Forecast - The company is expected to achieve net profits of 2.38 billion yuan, 2.71 billion yuan, and 3.07 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 13.9%, 13.7%, and 13.3% [3][17]. - The projected price-to-earnings ratios (PE) for the years 2025, 2026, and 2027 are 30.2, 26.6, and 23.5, respectively [3][17].

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has demonstrated steady revenue growth, with a 7.6% year-on-year increase in revenue to 640 million yuan for the first half of 2025, and a significant 47.0% increase in net profit attributable to shareholders, reaching 190 million yuan [4][5]. - The company is focusing on innovation, with a research and development expense ratio of 28.9%, up 4.1 percentage points year-on-year, which is expected to drive long-term growth [5]. - The company has established a clear pipeline with significant progress in core projects, including two products in NDA stage and seven in Phase III trials [5]. Company Overview - The latest closing price is 52.60 yuan, with a total market capitalization of 32.4 billion yuan [3]. - The company has a low debt-to-asset ratio of 7.2% and a price-to-earnings ratio of 46.14 [3]. Financial Projections - Revenue projections for 2025-2027 are 4.121 billion yuan, 1.954 billion yuan, and 1.950 billion yuan, respectively, with net profit estimates of 3.240 billion yuan, 719 million yuan, and 564 million yuan [7][9]. - The expected growth rates for net profit are 359.9% in 2025, followed by declines of 77.8% and 21.6% in the subsequent years [7][9]. Cash Flow and Strategic Partnerships - The company secured a global licensing agreement with Pfizer for a dual antibody product, generating over 6 billion USD in total transaction value, which will provide substantial cash flow to support its pipeline expansion [6].

Investment Ratings - China Merchants Bank: BUY with a target price of HK$54.42 [5][6] - Agricultural Bank of China: BUY with a target price of HK$6.09 [7][8] - Postal Savings Bank of China: BUY with a target price of HK$6.35 [10][12] - Industrial and Commercial Bank of China: BUY with a target price of HK$7.15 [13][14] - China Construction Bank: BUY with a target price of HK$8.95 [15][16] - China Everbright Bank: BUY with a target price of HK$3.98 [18][19] - 3SBio Inc: BUY with a target price of HK$38.20 [20][21] - Longfor Group: HOLD with a target price of HK$9.52 [23][24][25] Core Insights - China Merchants Bank's attributable net profit increased by 2.7% YoY in 2Q25, recovering from a 2.1% decline in 1Q25, with outstanding asset quality but a drop in NIM [5][6] - Agricultural Bank of China's attributable net profit rose by 3.2% YoY in 2Q25, maintaining stable asset quality despite a slight decline in NIM [7][8] - Postal Savings Bank of China's net profit increased by 4.8% YoY in 2Q25, with strong asset quality and an attractive valuation [10][12] - Industrial and Commercial Bank of China's net profit grew by 1.4% YoY in 2Q25, showing improvement in asset quality and attractive valuation [13][14] - China Construction Bank's net profit increased by 1.6% YoY in 2Q25, with a decline in net interest income but solid asset quality [15][16] - China Everbright Bank's net profit rose by 0.8% YoY in 2Q25, with expectations of maintaining solid asset quality despite a declining NIM [18][19] - 3SBio Inc's revenue declined by 0.8% YoY in 1H25, but adjusted net profits increased by 2.1% YoY, with new product launches driving sales [20][21] - Longfor Group's revenue grew by 25.4% YoY in 1H25, but gross margin narrowed significantly, leading to a substantial decline in core net profit [23][24][25] Summary by Company China Merchants Bank - Attributable net profit increased 2.7% YoY in 2Q25 after a decline in 1Q25 [5][6] - Asset quality remains outstanding, but NIM dropped in 1H25 [5][6] - Target price revised to HK$54.42, maintaining BUY rating [5][6] Agricultural Bank of China - Attributable net profit increased 3.2% YoY in 2Q25 [7][8] - NIM was 1.32% in 1H25, down from 2024 [7][8] - Target price raised to HK$6.09, maintaining BUY rating [7][8] Postal Savings Bank of China - Attributable net profit increased 4.8% YoY in 2Q25 [10][12] - NIM reached 1.70% at end-June 2025 [10][12] - Target price revised to HK$6.35, maintaining BUY rating [10][12] Industrial and Commercial Bank of China - Attributable net profit increased 1.4% YoY in 2Q25 [13][14] - NIM reached 1.30% in 1H25 [13][14] - Target price raised to HK$7.15, maintaining BUY rating [13][14] China Construction Bank - Attributable net profit increased 1.6% YoY in 2Q25 [15][16] - Net interest income dropped 1.1% YoY in 2Q25 [15][16] - Target price raised to HK$8.95, maintaining BUY rating [15][16] China Everbright Bank - Attributable net profit increased 0.8% YoY in 2Q25 [18][19] - NIM expected to decline in 2025 [18][19] - Target price raised to HK$3.98, maintaining BUY rating [18][19] 3SBio Inc - Revenue declined by 0.8% YoY in 1H25 [20][21] - Adjusted net profits increased by 2.1% YoY [20][21] - Target price lifted to HK$38.20, reiterating BUY rating [20][21] Longfor Group - Revenue grew by 25.4% YoY in 1H25 [23][24][25] - Gross margin narrowed significantly, leading to a decline in core net profit [23][24][25] - Target price cut to HK$9.52, maintaining HOLD rating [23][24][25]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 46.32 [7][5]. Core Views - The company is entering a new development phase with stable cash flow from existing products and new growth from innovative drugs. The collaboration with Pfizer for drug 707 is progressing well, enhancing overseas clinical trials [1][3]. - The first payment for drug 707 is expected to be confirmed within the year, which could significantly impact the company's valuation [3]. - The company is increasing its R&D investment, with a focus on approximately 30 projects in various stages of development, indicating strong innovation potential [4]. Summary by Sections Existing Business Performance - In the first half of 2025, the company reported stable revenue performance with total revenue of CNY 43.6 billion, a slight decrease of 1% year-on-year. The breakdown includes: - Teva revenue of CNY 23.7 billion (-4% YoY) with a market share of 63% - EPO revenue of CNY 4.5 billion (-12% YoY) - Mandi revenue of CNY 6.8 billion (+24% YoY) - Sanofi revenue of CNY 6.4 billion (+7.6% YoY) [2]. R&D and Innovation - The company has increased its R&D expense ratio to 12.6% (+1.8 percentage points YoY), with R&D expenses reaching CNY 5.5 billion (+15% YoY). The pipeline includes 30 projects across various therapeutic areas, showcasing significant market potential [4]. Financial Projections - The report forecasts net profits for 2025-2027 to be CNY 10.42 billion, CNY 2.82 billion, and CNY 2.99 billion respectively, with a notable increase of 398% in 2025 [11]. - The company is valued at CNY 101.5 billion using the SOTP method, with existing business valued at CNY 22.7 billion and innovative drugs at CNY 49.6 billion [12][14].

Core Viewpoint - Sanofi Pharmaceutical (01530) reported a mixed performance in its interim results for the six months ending June 30, 2025, with a slight decline in revenue but a significant increase in net profit attributable to shareholders [1] Financial Performance - The company reported revenue of RMB 4.355 billion, a year-on-year decrease of 0.77% [1] - Net profit attributable to shareholders was RMB 1.358 billion, reflecting a year-on-year increase of 24.61% [1] - Basic earnings per share were RMB 0.57 [1] Market Position - Sanofi Pharmaceutical is recognized as a leading biotechnology company in China, with extensive experience in the research, production, and marketing of biopharmaceutical products [1] - The company holds a 63.0% market share in the platelet reduction treatment market in mainland China for its product Tevaz (recombinant human thrombopoietin) as of the first half of 2025 [1] - The company has maintained a leading position in the rhEPO market in mainland China for over twenty years, with a total market share of 41.5% as of the first half of 2025 [1] - Yisaipu, the first tumor necrosis factor α inhibitor launched in mainland China, is one of the company's core products [1] - The company also dominates the minoxidil market in mainland China with its product Mandi [1] Product Development - Sanofi Pharmaceutical is expanding its treatment areas through internal research and development as well as multiple external strategic collaborations [1]