Core Viewpoint - Gan & Lee Pharmaceuticals has achieved significant growth in the first half of 2025, with a focus on innovation and research in diabetes treatment, particularly in insulin products and GLP-1 receptor agonists [2][3][21]. Financial Performance - The company reported a revenue of 2.067 billion yuan, a year-on-year increase of 57.18%, and a net profit of 604 million yuan, up 101.96% compared to the previous year [2][8]. - Domestic business revenue reached 1.845 billion yuan, growing by 55.28%, while international business revenue was 222 million yuan, increasing by 75.08% [2][8][9]. - The company distributed cash dividends totaling 598 million yuan, representing 97.21% of the net profit attributable to shareholders for 2024 [2]. Research and Development - R&D investment for the first half of 2025 was 552 million yuan, accounting for 26.70% of total revenue [2][3][21]. - The company is advancing its third-generation insulin technology and is in the global Phase III clinical stage for its GZR4 insulin product and GLP-1RA drug, Bo Fang Ge Lu Tai [2][3][21]. Market Expansion - Gan & Lee has expanded its international market presence, receiving product approvals in countries like Malaysia, Pakistan, and Argentina [4][22]. - The company aims to provide more accessible treatment options globally, leveraging its innovative products and competitive pricing [4][22]. Industry Context - The Chinese pharmaceutical industry is experiencing a shift towards innovation-driven development, with government policies supporting the rapid approval and clinical application of new drugs [13][19]. - The insulin procurement policy in China is enhancing the competitiveness of domestic companies, allowing them to capture a larger market share [14][20]. Strategic Focus - The company is committed to integrating scientific excellence into daily operations and quantifying patient benefits through reliable clinical data [4][21]. - Gan & Lee is actively pursuing global partnerships and expanding its capabilities in compliance, production, and commercialization to strengthen its international presence [22].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 54.95 RMB, based on a 30x PE valuation for 2025, leading to a target market capitalization of 330 billion RMB [4]. Core Views - The company has been a leader in the insulin market for nearly 20 years, being the first domestic company to industrialize the production of third-generation insulin. It holds a 37% share of the total volume of third-generation insulin in the recent procurement, surpassing Novo Nordisk [1]. - Following the recent procurement renewal, the industry is entering a new cycle with both volume and price increases, indicating a reversal of the company's performance bottom. The gross margin is expected to reach 84% in 2025 [2]. - The company is advancing its international commercialization efforts, with a leading position in the industry. It has received FDA and EMA acceptance for its insulin products, indicating strong potential for revenue growth from overseas markets [3]. Summary by Sections Investment Logic - The company has a strong foothold in the insulin market, being the first to produce third-generation insulin in China. Its products cover long-acting, rapid-acting, and premixed insulin segments [1]. Industry Cycle - The recent procurement renewal has led to a price increase of 5-48% for the company's insulin products, with a significant 34% increase for its core product, glargine insulin. The company secured a procurement volume of 46.86 million units, a 32.6% increase from the last procurement [2]. International Commercialization - The company has established a comprehensive international network and is actively expanding its presence in various global markets. It has successfully registered its products in several countries, enhancing its international sales capabilities [3][24]. Financial Forecast - The company is projected to achieve net profits of 6.41 billion, 11.01 billion, and 15.12 billion RMB from 2024 to 2026, with year-on-year growth rates of 88.6%, 71.7%, and 37.4% respectively [4][6].