香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 文 件 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 文 件 的 全 部 或 任 何 部 份 內 容 所 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：01530） (1)與輝瑞就PD-1/VEGF雙特異性抗體(SSGJ-707) 訂 立 的 許 可 協 議 生 效；及 茲 提 述 本 公 司 日 期 為 二 零 二 五 年 五 月 二 十 日 的 公 告，內 容 有 關（其 中 包 括） 與輝瑞就PD-1/VEGF雙特異性抗體(SSGJ-707)訂 立 許 可 協 議。 許 可 協 議 所 訂 明 之 所 有 先 決 條 件 已 達 成，因 此，許 可 協 議 自 二 零 二 五 年 七 月 二 十 四 日 起 生 效。 構 成 許 可 協 議 項 下 先 決 條 件 之 一 的 選 擇 ...

Group 1 - The core viewpoint of the article highlights the significant shift in the hair transplant industry with the introduction of a "taxi-style pricing scheme" by the National Medical Insurance Administration, moving away from the controversial fixed-price model to a per-follicle pricing system [1] - The hair transplant industry is currently facing challenges, as exemplified by Yonghe's financial performance, which has shown continuous losses since its IPO in 2021, with net profits of 120 million yuan, -85.85 million yuan, -546 million yuan, and -226 million yuan from 2021 to 2024 [1] - In contrast, the market for hair loss treatment drugs, particularly Minoxidil, is thriving, with Mandey's sales revenue projected to reach 1.337 billion yuan in 2024, reflecting a year-on-year growth of approximately 18.9% [1] Group 2 - Mandey has maintained a dominant market position, with over 50% market share in 2024, and has consistently held more than 70% market share from 2017 to 2022 [4] - The younger demographic is increasingly affected by hair loss, with over 2.5 billion people in China experiencing this issue, and 74.6% of them being born in the 1980s and 1990s [6] - The rise of Minoxidil products is attributed to the younger generation's preference for scientifically validated treatments, with Mandey and Dafeixin being the two leading brands in the market [8][12] Group 3 - Mandey has successfully penetrated both offline and online markets, establishing partnerships with over 2,000 public medical institutions and 90,000 retail pharmacies, while also achieving over 60% of its sales through e-commerce channels [10][11] - The introduction of new Minoxidil products, such as Mandey's foam formulation, has enhanced its market competitiveness, with the foam being the only approved formulation in China that minimizes skin irritation [9] - The overall hair health market in China has grown significantly, from 58.29 billion yuan in 2020 to 79.55 billion yuan in 2023, with projections to exceed 116.54 billion yuan by 2028 [20] Group 4 - The entry of new players and technological advancements in the Minoxidil market have led to increased competition, with companies like Lunan Pharmaceutical launching new products that challenge traditional brands like Dafeixin [24][25] - Dafeixin, despite its long-standing presence in the market, is facing challenges due to the emergence of new competitors and a decline in its market share, with a reported revenue of 2.971 billion yuan in 2024, down 18.06% year-on-year [26] - The article concludes that the Minoxidil market's explosive growth is driven by a younger, more educated consumer base that prioritizes effective and scientifically validated treatment options [27][28]

Core Viewpoint - Company is expected to achieve a revenue and net profit CAGR of 10% and 15% respectively from 2024 to 2026, driven by the sustained growth of existing major products like Tebiou and Mandi, as well as the rapid market entry of new products [1] Group 1: Existing Core Products - The competitive landscape for the core product Tebiou is favorable, with expectations for continued sales performance exceeding forecasts [2] - Tebiou is the only drug approved for the CIT indication globally, with potential to replace IL-11 class competitors and increase market share [2] - The sales CAGR for Tebiou is projected to reach 11% from 2024 to 2026, with a long-term sales peak expected to reach 7 billion RMB [2] Group 2: Mandi's Growth Potential - Mandi is anticipated to maintain sales growth over a long period, with a peak expected to reach 2.5 billion RMB [3] - The growth is driven by a large and increasingly younger population suffering from hair loss, as well as a dual-channel marketing strategy enhancing brand recognition [3] - The introduction of new products like Winlevi® and semaglutide is expected to leverage Mandi's established brand and commercialization channels for rapid market entry [3] Group 3: Innovation Pipeline - The company is on the verge of a product innovation phase, with 30 products in the pipeline as of Q1 2025, 12 of which are expected to be approved in China by 2025-2027 [4] - The focus is on rapid iteration in key therapeutic areas such as hematology, oncology, autoimmune diseases, and metabolic disorders [4] - A significant licensing agreement with Pfizer for the self-developed PD-1/VEGF dual antibody SSGJ-707, with a total transaction value of up to 6.05 billion USD, underscores the company's drug development capabilities [4]

Group 1 - The company signed an exclusive agreement with Pfizer for the global development, production, and commercialization rights of its PD-1/VEGF bispecific antibody SSGJ-707, excluding mainland China, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [1] - The agreement also includes a tiered sales revenue sharing based on product sales in the licensed regions, and Pfizer will purchase $100 million worth of common stock in the company upon the agreement's effective date [1] - The company maintains its profit forecast, expecting net profits of 2.328 billion, 2.612 billion, and 2.938 billion yuan for 2025-2027, with corresponding EPS of 0.97, 1.09, and 1.23 yuan per share, resulting in a current PE of 9.3, 8.3, and 7.4 times [1] Group 2 - SSGJ-707 has shown excellent ORR and DCR in the treatment of NSCLC patients, indicating its best-in-class potential, and has received breakthrough therapy designation from the National Medical Products Administration for first-line treatment of PD-L1 positive locally advanced or metastatic NSCLC [2] - The company is advancing clinical research for SSGJ-707 in other areas, including colorectal cancer and gynecological tumors, and has received FDA IND approval [2] - The company’s existing products, such as Tebentafusp, are expected to see growth due to successful negotiations for zero price reduction in 2024 and the addition of new indications, contributing to cash flow [2]

Core Viewpoint - The collaboration between 3SBio and Pfizer for SSGJ-707 marks a significant milestone in the Chinese biopharmaceutical industry, with a total upfront payment of $1.25 billion and potential milestone payments reaching up to $4.8 billion, indicating strong market confidence in the drug's potential [1][2]. Group 1: Licensing Agreement and Financial Implications - 3SBio has granted Pfizer global development, production, and commercialization rights for SSGJ-707 outside of mainland China while retaining rights for mainland China and granting Pfizer commercialization options [1]. - The agreement includes a non-refundable upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion based on development, regulatory approvals, and sales [1]. - Additionally, 3SBio will receive a tiered sales royalty based on product sales in the licensed regions [1]. Group 2: Clinical Development and Pipeline - SSGJ-707 has shown significant anti-tumor activity and good safety in Phase II clinical trials, positioning it as a potential best-in-class therapy [2]. - The drug is currently undergoing four Phase II clinical studies in China, targeting various cancers including PD-L1 positive non-small cell lung cancer (NSCLC) and advanced gynecological tumors [2]. - Future catalysts for SSGJ-707 include Pfizer's overseas clinical progress, advancements in domestic Phase III trials, and data releases from major conferences like ASCO [2]. Group 3: Existing Product Portfolio and Growth Potential - 3SBio's existing core products are mature and leading in their respective segments, with expected stable growth [2]. - Key products include Terbinafine, which is the company's top-selling product, and Erythropoietin, which has new indications covered by insurance, opening up significant market potential [2]. - The company is also focusing on oral paclitaxel and other promising candidates in its pipeline, indicating a robust growth strategy [3]. Group 4: Financial Forecast and Market Valuation - The projected peak sales for SSGJ-707 are estimated at $8.5 billion, with a 10% sales royalty contributing to a market value of approximately 35 billion [4]. - The domestic peak sales are estimated at $5 billion, contributing an additional 15 billion in market value [4]. - The total target market capitalization is around 80 billion, with significant adjustments to net profit forecasts for 2025-2027, reflecting strong growth expectations [4].

Group 1 - The core point of the article is the licensing agreement between 3SBio and Pfizer for the development and commercialization of SSGJ-707, a bispecific antibody targeting PD-1 and VEGF, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [1][2] - SSGJ-707 has shown promising clinical results in non-small cell lung cancer (NSCLC) with high objective response rates (ORR) and disease control rates (DCR), indicating its best-in-class potential [2] - The drug has received breakthrough therapy designation from the National Medical Products Administration (NMPA) in China and IND approval from the FDA, with ongoing clinical studies for other cancers [2] Group 2 - The company expects steady growth in its core products, including Tezspire and Mandi, in 2024, along with expansion in indications and formulations [3] - The company has established four new collaborations in 2024, enhancing its commercial footprint and product portfolio [3] - Revenue forecasts for the company have been adjusted upwards, with projected total revenues of 18.244 billion, 12.752 billion, and 14.731 billion yuan for 2025-2027, and corresponding net profits of 8.575 billion, 3.413 billion, and 4.102 billion yuan [3]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has authorized Pfizer for the global development, production, and commercialization rights of SSGJ-707 outside of mainland China, receiving a non-refundable upfront payment of $1.25 billion, the largest in China's BD history. The agreement also includes potential milestone payments of up to $4.8 billion and a double-digit percentage sales share based on product sales in authorized regions [7] - The company is expected to achieve a peak sales value of $8.5 billion for SSGJ-707, contributing approximately 35 billion RMB to market value based on a 20x PE after discounting. The domestic peak sales are projected at 5 billion RMB, contributing around 15 billion RMB to market value. The existing business is expected to generate over 2 billion RMB in profit, corresponding to a market value of 30 billion RMB [7] - The company has raised its net profit forecasts for 2025-2026 from 2.63 billion RMB and 2.87 billion RMB to 9.91 billion RMB and 4.47 billion RMB, respectively, with an expected net profit of 5.17 billion RMB in 2027 [7] Financial Projections - Total revenue projections for the company are as follows: - 2023A: 7,836 million RMB - 2024A: 9,108 million RMB (up 16.24% YoY) - 2025E: 19,229 million RMB (up 111.13% YoY) - 2026E: 13,174 million RMB (down 31.49% YoY) - 2027E: 14,885 million RMB (up 12.98% YoY) [1] - Net profit projections are as follows: - 2023A: 1,549 million RMB - 2024A: 2,090 million RMB (up 34.93% YoY) - 2025E: 9,908 million RMB (up 373.98% YoY) - 2026E: 4,474 million RMB (down 54.85% YoY) - 2027E: 5,169 million RMB (up 15.54% YoY) [1] - The latest diluted EPS projections are: - 2023A: 0.65 RMB - 2024A: 0.87 RMB - 2025E: 4.13 RMB - 2026E: 1.87 RMB - 2027E: 2.15 RMB [1]

Investment Rating - The report maintains a "Recommended" rating for the company [5][7]. Core Insights - The company has signed an agreement with Pfizer to exclusively grant rights for its innovative PD-1/VEGF bispecific antibody SSGJ-707, receiving an upfront payment of $1.25 billion and potential milestone payments up to $4.8 billion [3][4]. - SSGJ-707 shows best-in-class potential with promising clinical data in treating non-small cell lung cancer (NSCLC) and has received breakthrough therapy designation from the National Medical Products Administration [4]. - The company has a robust pipeline with 30 products in development, several of which are nearing market application, indicating a fruitful period ahead for its innovation pipeline [4]. Financial Projections - The company expects total revenue of RMB 182.44 billion, RMB 127.52 billion, and RMB 147.31 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 85.75 billion, RMB 34.13 billion, and RMB 41.02 billion [5][6]. - Earnings per share (EPS) are projected to be RMB 3.57, RMB 1.42, and RMB 1.71 for the years 2025, 2026, and 2027 respectively [6][9]. Business Development - The company is expanding its commercial footprint through partnerships, having secured four collaborations in 2024, which will enhance its product portfolio and revenue growth [5][4]. - Core products are expected to continue stable growth in 2024, with ongoing expansion into new indications and formulations [5].

Investment Rating - The report maintains a "Recommended" rating for the company [5][7]. Core Insights - The company has signed an agreement with Pfizer to exclusively grant rights for its innovative PD-1/VEGF bispecific antibody SSGJ-707, receiving an upfront payment of $1.25 billion and potential milestone payments up to $4.8 billion [3][4]. - SSGJ-707 shows best-in-class potential with promising clinical data in non-small cell lung cancer (NSCLC), having received breakthrough therapy designation from the National Medical Products Administration [4]. - The company has a robust pipeline with 30 products in development, several of which are nearing market application, indicating a fruitful period ahead for innovation [4]. Financial Projections - The company expects total revenue of RMB 182.44 billion, RMB 127.52 billion, and RMB 147.31 billion for the years 2025, 2026, and 2027 respectively, with corresponding net profits of RMB 85.75 billion, RMB 34.13 billion, and RMB 41.02 billion [5][6]. - Earnings per share (EPS) are projected to be RMB 3.57, RMB 1.42, and RMB 1.71 for the years 2025, 2026, and 2027 respectively [6][9]. Business Development - The company is expanding its commercial footprint through collaborations, having secured four partnerships in 2024, which will enhance its product portfolio and revenue growth [5][4]. - Core products are expected to continue stable growth in 2024, with ongoing expansion into new indications and formulations [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has entered into a significant agreement with Pfizer regarding the global development, production, and commercialization rights for its innovative PD-1/VEGF bispecific antibody SSGJ-707, which includes an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [6] - The company maintains its profit forecast, expecting net profits of 2.328 billion, 2.612 billion, and 2.938 billion CNY for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.97, 1.09, and 1.23 CNY per share [6] - The current stock price corresponds to a PE ratio of 9.3, 8.3, and 7.4 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation [6] Financial Summary and Valuation Indicators - The company's revenue is projected to grow from 7.836 billion CNY in 2023 to 10.078 billion CNY in 2025, reflecting a year-over-year growth rate of 14.1% and 10.7% respectively [9] - Net profit is expected to increase from 1.549 billion CNY in 2023 to 2.328 billion CNY in 2025, with a year-over-year growth of (19.1%) in 2023, followed by 34.9% in 2024 and 11.4% in 2025 [9] - The gross margin is projected to remain stable at around 84.2% from 2025 to 2027, while the net margin is expected to improve slightly from 26.6% in 2025 to 26.8% in 2027 [9] - The company’s ROE is forecasted to increase from 0.8% in 2025 to 1.1% in 2027 [9] Pipeline and Product Development - The company’s core product SSGJ-707 has shown promising results in clinical trials for NSCLC, achieving excellent ORR and DCR, and has received breakthrough therapy designation from the National Medical Products Administration [7] - The company is advancing multiple clinical studies for SSGJ-707, including a Phase III trial for NSCLC and ongoing research for colorectal cancer and gynecological tumors [7] - The company’s existing products, including Tebentafusp and others, are expected to contribute positively to cash flow, with successful negotiations for new indications enhancing growth potential [7]