Core Viewpoint - The report from Shenwan Hongyuan indicates that Zai Lab (09688) is expected to achieve non-GAAP operating profit by Q4 2025, driven by the commercialization of products and localized production [1] Financial Projections - Revenue projections for Zai Lab from 2025 to 2027 are estimated at $553 million, $802 million, and $1.203 billion respectively, with net profit attributable to the parent company expected to be -$134 million, $15 million, and $173 million for the same years [1] - The target price set at HKD 35.2 implies a 39% upside potential, reflecting confidence in the company's innovative pipeline [1] Product Portfolio and Commercialization - Zai Lab is a global biopharmaceutical company in the commercialization stage, with seven products approved in China, including four oncology products and one immunology product [2] - Since the approval of its first commercial product, Niraparib, in 2019, Zai Lab has seen significant sales growth, with total revenue projected to reach $399 million in 2024, a 50% increase year-on-year [3] New Product Development - The company has submitted applications for new products, including KarXT and TF ADC, to the NMPA, with plans to submit for Bemarituzumab for 1L gastric cancer in the second half of the year [3] - Zai Lab anticipates revenue could reach $2 billion by 2028, supported by the sales of existing products and the approval of new products [3] Expansion of Indications - Efgartigimod, the first FcRn antagonist globally, has received approvals for multiple indications, with sales expected to reach $94 million in 2024, reflecting an 835% year-on-year growth [4] - The company is exploring additional indications for Efgartigimod, which could broaden its market reach across various medical fields [4] Global Pipeline Development - Zai Lab is actively expanding its global pipeline, focusing on ADCs and bispecific antibodies, with several products showing potential for first-in-class (FIC) or best-in-class (BIC) status [5] - The company plans to initiate global pivotal studies for ZL-1310, which has shown promising clinical activity and safety [5]

Core Viewpoint - Zai Ding Pharma is expected to achieve non-GAAP operating profit by Q4 2025, driven by the commercialization of products and localized production [1] Financial Projections - Revenue projections for Zai Ding Pharma are $553 million, $802 million, and $1.203 billion for 2025, 2026, and 2027 respectively [1] - Net profit projections for the company are -$134 million, $15 million, and $173 million for 2025, 2026, and 2027 respectively [1] - The target price is set at HKD 35.2, indicating a potential upside of 39% [1] Product Portfolio and Pipeline - Zai Ding Pharma has seven products approved for sale in China, including four oncology products, one immunology product, and two infectious disease products [2] - The company has seen a 50% year-on-year revenue growth in 2024, reaching $399 million, primarily due to the sales increase of existing products [3] - New product applications have been submitted to NMPA, with expectations for further approvals in the near future [3] Key Product Developments - Efgartigimod (艾加莫德) is being explored for additional indications beyond its current approvals, with significant sales growth anticipated [4] - The product is expected to generate $94 million in domestic sales in 2024, reflecting an 835% increase [4] Global Pipeline Expansion - The company is actively expanding its global pipeline, focusing on ADCs and bispecific antibodies [5] - ZL-1310 has received Fast Track designation from the FDA, with positive clinical data expected to be presented at the 2025 ASCO annual meeting [5] - The company plans to initiate global pivotal studies for ZL-1310 in the near future [5]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [5][11]. Core Insights - The company is positioned to reach a profitability inflection point due to its differentiated innovative pipeline and ongoing commercialization of its products [2][13]. - The company expects significant revenue growth, projecting revenues of $3.99 billion in 2024, $5.53 billion in 2025, $8.02 billion in 2026, and $12.03 billion in 2027, with a potential revenue of $2 billion by 2028 [2][5][11]. Summary by Sections Product Pipeline and Commercialization - The company has seven products approved for sale in China, including four oncology products, one immunology product, and two infectious disease products [2][27]. - The core products are experiencing strong sales growth, with a projected revenue increase of 50% year-over-year in 2024, driven by products like Weiwei Jia and Niu Zai Le [2][30]. - The company has submitted applications for new products, including KarXT and TF ADC, and anticipates further submissions for other products [2][12]. Financial Projections - The company forecasts revenues of $5.53 billion, $8.02 billion, and $12.03 billion for 2025, 2026, and 2027, respectively, with net profits expected to turn positive by 2027 [5][11]. - The report indicates that the company will achieve non-GAAP operating profit by Q4 2025, supported by local production and increasing product sales [41]. Market Position and Valuation - The company's current stock price reflects a valuation of 7 times the 2025 price-to-sales ratio, compared to an average of 18 times for comparable companies, indicating attractive valuation [11]. - The target price is set at HKD 35.2, representing a 39% upside potential from the current price [5][11]. Key Product Highlights - Efgartigimod (艾加莫德) is expected to become a leading product in the autoimmune field, with significant sales growth projected due to new indications and formulations [3][12]. - ZL-1310 (DLL3 ADC) has shown promising clinical data and is expected to enter critical global studies [4][38]. - The company is actively expanding its global pipeline, focusing on ADCs and bispecific antibodies, with multiple products in various stages of clinical development [4][38].

Group 1: Hong Kong Stocks - Photovoltaic stocks rose in the morning, with Xinyi Solar (00968) up over 3%, Fuyao Glass (03606) up over 3%, and GCL-Poly Energy (00451) up over 3%. Domestic leading polysilicon companies have raised prices, and the market is focused on the restructuring progress in the polysilicon industry [1] - Heng Rui Medicine (01276) increased by over 5% after announcing the approval of HRS-7172 tablets for clinical trials by the National Medical Products Administration on September 2 [1] - Qingdao Bank (03866) rose over 2% as its major shareholder plans to increase holdings by 233 million to 291 million shares, recognizing the long-term investment value of the bank's stock [1] - Zhaojin Mining (01818) increased by over 1%, with a total market value exceeding HKD 100 billion, and the company is accelerating overseas project construction, indicating future growth potential [1] - Zhongsheng Holdings (00881) rose over 4%, with management optimistic about the new car market and smooth progress in the company's new energy business [1] - Innovent Biologics (09969) increased by over 5% after disclosing its interim performance report, with core products driving growth and accelerating multiple self-immune phase III clinical trials [1] - United Laboratories (03933) rose over 6% after announcing a 27% year-on-year increase in profit attributable to shareholders in its half-year results, with key progress in several products in the formulation segment [1] Group 2: U.S. Stocks - NIO (NIO.US) rose 3.13%, with vehicle deliveries in August 2025 reaching 31,305 units, a year-on-year increase of 55.2%, and total deliveries since 2025 reaching 166,472 units, up 30.0% [3] - Hesai Technology (HSAI.US) fell 2.91% as it plans to list in Hong Kong after passing the hearing [3] - Eli Lilly (LLY.US) rose 0.36% after Novo Nordisk's weight loss drug Wegovy outperformed it in a real-world comparative study [3] - Zai Lab (ZLAB.US) increased by 0.73% after announcing that its drug was approved in Hong Kong for treating recurrent or metastatic cervical cancer [3] - Beike (BEKE.US) rose 4.89% after reporting a 11.3% year-on-year increase in net income for the second quarter, leading multiple institutions to reaffirm a "buy" rating [3] - Gold stocks rose against the trend, with Gold Resource (GORO.US) up 15.80%, Harmony Gold (HMY.US) up 7.53%, and Kinross Gold (KGC.US) up 2.68%, driven by expectations of U.S. interest rate cuts and a weak dollar [3] - Corning (GLW.US) rose 2.15% after UBS raised its target price from $65 to $84 and upgraded its rating from "neutral" to "buy" [4] - Li Auto (LI.US) rose 4.50% as the founder announced plans to fully enter the high-end pure electric SUV market [4]

Group 1 - Zai Lab (ZLAB.US) shares rose 1% in pre-market trading, reaching $33.43 [1] - The Hong Kong Department of Health has approved TIVDAK® (tisotumab vedotin) for the treatment of recurrent or metastatic cervical cancer in adult patients who have disease progression during or after chemotherapy [1] - Tisotumab vedotin is currently under review for a biological product license application by the National Medical Products Administration (NMPA) in China, with the application accepted in March 2025 [1] Group 2 - The closing price on August 29 was $33.10, with a pre-market price of $33.43 on September 2 [1] - The stock's highest price was $33.51, and the lowest was $32.59, with a trading volume of 378,300 shares [1] - The total market capitalization of Zai Lab is approximately $3.64 billion [1]

Core Viewpoint - The Hong Kong government has approved TIVDAK® (tisotumab vedotin) for the treatment of recurrent or metastatic cervical cancer in adult patients who have experienced disease progression during or after chemotherapy [1] Company Summary - The approval by the Hong Kong Department of Health marks a significant milestone for the company, as it expands the availability of TIVDAK® in the region [1] - TIVDAK® is currently undergoing the biological product license application review process with the National Medical Products Administration (NMPA) in China, with the application accepted in March 2025 [1]