Core Viewpoint - The report from CMB International indicates an increase in the target price for Rongchang Biologics (09995) from HKD 109 to HKD 112, maintaining a "Buy" rating [1] Financial Performance - Rongchang Biologics reported a 33% year-on-year revenue growth in Q3, reaching RMB 620 million [1] - Sales revenue from Taitasip was RMB 380 million, reflecting a 41% year-on-year increase and a 13% quarter-on-quarter increase [1] - Sales revenue from Vidisizumab was RMB 240 million [1] - The company recorded a net loss of RMB 100 million in Q3, continuing a trend of decreasing losses [1] Cash Position and Credit Facilities - As of the end of the quarter, the company had cash reserves of RMB 1.45 billion and approximately RMB 3.5 billion in available credit facilities [1] Management Outlook - Management expressed confidence in achieving a sales revenue growth target of over 30% for the year, driven by Taitasip and RC28 [1]

Core Viewpoint - The report from CMB International indicates an increase in the target price for Rongchang Biologics (09995) from HKD 109 to HKD 112, maintaining a "Buy" rating, highlighting significant growth potential in upcoming clinical developments and product sales [1] Financial Performance - Rongchang Biologics reported a 33% year-on-year revenue increase to RMB 620 million in Q3, with sales from Taitasip reaching RMB 380 million, reflecting a 41% year-on-year and 13% quarter-on-quarter growth [1] - Sales from Vidisizumab amounted to RMB 240 million, showing a 21% year-on-year and 3.5% quarter-on-quarter increase [1] - The gross margin improved by 2.5 percentage points, while the SG&A expense ratio decreased by 9.6 percentage points, and R&D expenses saw a significant reduction of 30% [1] Loss and Cash Position - The company reported a net loss of RMB 100 million in Q3, continuing a trend of decreasing losses quarter by quarter [1] - As of the end of the quarter, the company had cash reserves of RMB 1.45 billion and approximately RMB 3.5 billion in available credit lines [1] Future Outlook - Management expressed confidence in achieving over 30% growth in annual product sales revenue, with expected revenue recognition from upfront payments for Taitasip and RC28's business development transactions in Q4 [1]

Core Viewpoint - The report from CMB International indicates an increase in the target price for Rongchang Biologics (09995) from HKD 109 to HKD 112, maintaining a "Buy" rating, highlighting significant growth potential in upcoming clinical developments and product sales [1] Financial Performance - Rongchang Biologics reported a 33% year-on-year increase in revenue for Q3, reaching RMB 620 million, with sales from Taitasip contributing RMB 380 million, reflecting a 41% year-on-year and 13% quarter-on-quarter growth [1] - Sales from Vidisizumab amounted to RMB 240 million, showing a 21% year-on-year and 3.5% quarter-on-quarter increase [1] - The gross margin improved by 2.5 percentage points, while the SG&A expense ratio decreased by 9.6 percentage points, and R&D expenses saw a significant reduction of 30% [1] Loss and Cash Position - The net loss for Q3 was RMB 100 million, continuing a trend of sequential reduction [1] - The company ended the quarter with cash reserves of RMB 1.45 billion and approximately RMB 3.5 billion in available credit lines [1] Future Outlook - Management expressed confidence in achieving over 30% growth in annual product sales revenue, with expected recognition of upfront revenue from BD licensing deals for Taitasip and RC28 in Q4 [1]

Key Insights - The external environment continues to improve, with market risk appetite steadily increasing. The Hong Kong stock market experienced adjustments in October, but there has been significant progress in US-China trade negotiations, with both sides reaching a "basic consensus" on key issues such as tariffs and export controls [1] - The Federal Reserve lowered interest rates by 25 basis points in October and announced a pause in balance sheet reduction in December, confirming further easing signals. Meanwhile, mainland China's policies remain consistent and stable, with the Fourth Plenary Session of the Communist Party formally approving the "14th Five-Year Plan," providing policy anchoring for the fundamentals of the Hong Kong stock market [1][2] Monthly Stock Picks - The report highlights three major variables to watch in November: 1) The pace of Federal Reserve rate cuts, with Powell's latest statement indicating that a December cut is "far from a done deal," leading to potential market volatility; 2) Progress in US-China relations and the specifics of the framework agreement; 3) Developments in mainland China's growth stabilization policies [2] - The report emphasizes a focus on "technology growth + defensive stability," balancing offensive and defensive strategies in industry allocation [3] Company-Specific Insights - Futu Holdings (FUTU US), Prosperity Industrial Trust (778 HK), and Alibaba (BABA US/9988 HK) are among the highlighted stocks for November, indicating a focus on quality targets in the technology and defensive sectors [3] - Nvidia (NVDA US) announced numerous collaboration projects at the GTC conference, projecting a market opportunity of $500 billion over the next two years, with a target price raised to $240, indicating a potential upside of 15.9% [5][6] - Longyuan Power (916 HK) reported a net profit decline of 19.8% year-on-year for the first three quarters, but the recovery of subsidy amounts exceeded expectations, with a total new installed capacity of 2.27 GW [16] Industry Trends - The report notes that the healthcare sector's performance has been mixed, with the Hang Seng Healthcare Index declining by 0.9%. However, there is a positive outlook for innovative drugs and CXO companies, with recommendations for specific stocks like 3SBio and WuXi AppTec [17][18] - The report highlights that the beer market in mainland China is expected to take time to recover, but long-term confidence in Budweiser APAC's premiumization strategy remains strong [13][14]

Core Viewpoint - Recent clinical trial results for Taitasip from Rongchang Biologics have met primary and all secondary endpoints, indicating strong potential for the drug in the market [1] Group 1: Clinical Results - Rongchang Biologics announced that Taitasip's Phase III results in mainland China have achieved all major and secondary endpoints [1] - The positive clinical data supports a favorable outlook for the sales prospects of both Taitasip and Vidisimo [1] Group 2: Market Potential - The global sales peak for Rongchang Biologics is projected to exceed $2.5 billion, reflecting the significant market value of Taitasip in the autoimmune sector [1] - The company is expected to gradually realize this market value in its overall valuation [1] Group 3: Financial Projections - Revenue forecasts for 2025 to 2027 have been raised by 1% to 4% based on the promising clinical data [1] - The target price for Rongchang Biologics has been increased to HKD 109, maintaining a "Buy" rating [1]

Group 1: Chinese Economy - The Chinese economy demonstrated strong resilience in the first three quarters of 2025, with a GDP growth of 5.2% year-on-year, and a quarterly growth of 4.8% in Q3, maintaining a reasonable operational range [3][4] - Domestic demand continues to contribute steadily to economic growth, with final consumption expenditure accounting for 53.5% of GDP growth in the first three quarters, an increase of 9 percentage points compared to the entire year of 2024 [4] - The total import and export volume increased by 4.0% year-on-year in the first three quarters, with exports growing by 7.1%, highlighting the global competitive advantage of Chinese manufacturing [4] Group 2: Alibaba - Alibaba's revenue for Q2 of FY2026 is expected to grow by 3.9% year-on-year, with the overall e-commerce business projected to incur a loss of approximately 37.6 billion yuan due to significant subsidies [5][6] - The cloud business is anticipated to accelerate further, with revenue expected to exceed 30% year-on-year, while maintaining stable profit margins [5] - The target price for Alibaba is maintained at $200, reflecting a potential upside of 15.3% from the current closing price of $173.47 [5][6] Group 3: Rongchang Bio - Rongchang Bio's core product has shown excellent clinical data for a major indication, leading to an upward revision of the target price to HKD 109, indicating a potential upside of 17.8% from the current price of HKD 92.50 [9][10] - The data presented at the ESMO conference for the combination therapy of Vidisic and T demonstrated significant survival benefits compared to chemotherapy [9] - The company is expected to benefit from ongoing international multi-center studies in collaboration with Pfizer [9] Group 4: CATL (Ningde Times) - CATL reported a robust profit margin of 17.8% in Q3, with revenue reaching 104.2 billion yuan, a year-on-year increase of 12.9%, and a net profit of 18.6 billion yuan, up 41.2% year-on-year [11][12] - The demand for energy storage is projected to be the largest driver of lithium battery demand in 2025, with a 104% year-on-year increase in new bidding scale for energy storage in China [12] - The target price for CATL has been raised to 458.75 yuan, reflecting a potential upside of 25.2% from the current price of 366.50 yuan [11][12]

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company has achieved continuous loss reduction for three consecutive quarters, driven by the commercialization of Tai'tasip and Vidi'sitom, with expectations for profitability improvement [1][2] - The company reported a revenue of 526 million yuan in Q1 2025, a year-on-year increase of 59.17%, primarily driven by the sales of Tai'tasip and Vidi'sitom [2] - The company is optimistic about the ongoing clinical trials and market potential of Tai'tasip for generalized Myasthenia Gravis (gMG) and other indications [3][4] Financial Performance - In Q1 2025, the company reported a net loss of 254 million yuan, a reduction of 95 million yuan year-on-year, indicating a trend of continuous loss reduction [2] - The R&D expense ratio decreased by 37.7 percentage points to 62.53%, while the sales and management expense ratios also saw significant declines, contributing to the loss reduction [2] - Revenue projections for 2025-2027 are estimated at 2.407 billion, 3.269 billion, and 4.185 billion yuan respectively, with expectations of continued loss reduction in 2025-2026 and profitability in 2027 [5][12] Pipeline and Market Potential - Tai'tasip has received breakthrough therapy designation in China and orphan drug status in the US, indicating strong market potential [3] - The company is advancing multiple products through clinical trials, with several indications expected to enter commercialization, supporting revenue growth [4] - The company is optimistic about the commercialization prospects of Tai'tasip in both domestic and international markets, particularly in the US [3][4]