Market Overview - On September 15, the Hong Kong stock market experienced narrow fluctuations, with the Hang Seng Index rising by 58 points or 0.2% to close at 26,446 points. The Hang Seng Tech Index increased by 0.9% to 6,043 points. The market turnover decreased to over HKD 290.2 billion, with a net inflow of HKD 14.47 billion from the Stock Connect, continuing to support the market [1] - Economic data from China in August indicated a slowdown in growth momentum, with moderate consumption growth, significant investment slowdown, and ongoing downward pressure in the real estate sector. Notably, the credit pulse index in August declined for the first time in nine months, which may exert pressure on the Hong Kong stock market [1] Macroeconomic Dynamics - In August, China's retail sales growth slowed significantly, with a year-on-year increase of only 3.4%, the lowest since November of the previous year. Fixed asset investment growth from January to August was only 0.5%, with real estate investment declining by 12.9% [2] - The new housing transaction volume in major cities showed a mixed performance, with a year-on-year decline of 6.3% in the last week, contrasting with a rise in first-tier cities [2] Industry Dynamics - The Hong Kong automotive sector saw a rebound after a period of stagnation, with companies like BYD and NIO experiencing stock price increases. NIO is set to launch its new E8 model on September 20 [4] - The healthcare index in Hong Kong rose by 0.2%, driven by the CXO sector. Recent government meetings emphasized the promotion of biomedical technology innovation and the upgrading of the biopharmaceutical industry [4] Pharmaceutical Sector Insights - The innovative drug and CXO sectors are expected to maintain robust growth, with leading companies in these areas showing strong performance in the first half of 2025. The demand for innovative drugs in oncology, metabolism, and autoimmune diseases is anticipated to grow steadily [6][7] - Traditional medical service sectors are expected to recover gradually, although the impact of medical insurance cost control remains a concern. Government policies aimed at alleviating financial issues for medical institutions are expected to improve the operating environment over time [8] Key Company Recommendations - China Biologic Products (1177 HK) reported a 10.7% increase in revenue to RMB 17.57 billion in the first half of 2025, with a net profit increase of 12.3% to RMB 3.39 billion. The company is expected to achieve double-digit growth in product sales revenue [10] - Hansoh Pharmaceutical (3692 HK) saw a 14.3% increase in revenue to RMB 7.43 billion, with a net profit increase of 15.0% to RMB 3.14 billion, driven by strong performance in its oncology products [10] - WuXi AppTec (2359 HK) reported a 20.6% increase in revenue to RMB 20.80 billion, with a net profit increase of 95.5% to RMB 8.29 billion, reflecting strong core business performance [11] Environmental Sector Insights - Gree Power (1330 HK) reported a 24.5% increase in net profit to RMB 380 million in the first half of 2025, driven by increased waste processing and electricity generation [12] - The company has rationally expanded its capacity, with waste processing capacity growing from 33,710 tons/day in FY21 to 40,310 tons/day in FY24, indicating a compound annual growth rate of 6.1% [13]

Market Overview - The Hang Seng Index rose by 0.3% last week, closing at 25,339 points, while the Hang Seng Tech Index increased by 1.9% to 5,647 points[1] - Average daily trading volume increased by 3.6% to HKD 280.4 billion, with a net inflow of HKD 17.8 billion through the Stock Connect[1] - The real estate, utilities, energy, and materials sectors saw declines between 0.6% and 2.2%, while consumer discretionary and information technology sectors rose by 1.6%[1] Economic Dynamics - The US manufacturing PMI rose to 53.3, indicating expansion, while the services PMI slightly decreased to 55.4, remaining at a high level[2] - Price pressures persist, with the purchasing price index soaring to 67.1, indicating ongoing inflation risks[2] Industry Insights - Xpeng Motors reported better-than-expected earnings, leading to a 13.1% increase in its stock price last Friday[3] - The healthcare sector saw a 0.9% increase in the Hang Seng Healthcare Index, with notable performances from companies like China Biologic Products and WuXi Biologics[4] Company Performance - Yancoal Australia reported a 61.2% drop in net profit for H1 FY25, with revenue down 14.8% to AUD 268 million[6] - The company expects a rebound in coal prices in H2 FY25, with average prices projected to decline by 7.1% for thermal coal and 20.7% for metallurgical coal[7] Forecast Adjustments - Target price for Yancoal Australia adjusted from HKD 38.55 to HKD 34.70, reflecting a 22.9% upside potential[9] - HanSung Pharmaceutical's revenue for H1 2025 increased by 14.3% to RMB 7.43 billion, with net profit rising by 15.0% to RMB 3.14 billion[12]

Market Overview - The Hang Seng Index fell by 61 points or 0.2%, closing at 25,104 points, with narrow fluctuations around 25,200 points for five consecutive trading days[1] - The Hang Seng Tech Index decreased by 0.8%, ending at 5,498 points, with total market turnover dropping to HKD 239.5 billion[1] - Net inflow from the Hong Kong Stock Connect was HKD 7.46 billion, indicating continued domestic capital support[1] Sector Performance - The biopharmaceutical sector rebounded, with leading companies like Innovent Biologics (1801 HK) and CanSino Biologics (9926 HK) rising by 4.9% and 3.3% respectively[1] - Ping An Good Doctor (1833 HK) reported a 136.8% increase in mid-term net profit, leading to an 11.4% surge in its stock price, reaching a three-year high[1] - The telecommunications, engineering machinery, and certain power generation stocks showed upward movement, while major tech stocks like Alibaba (9988 HK) and Meituan (3690 HK) declined[1] Automotive Sector Insights - Li Auto (9863 HK) saw a significant 16% increase over the past month, but dropped 4.7% after rumors of a potential acquisition by FAW Group were denied[2] - Great Wall Motors (2333 HK) rose by 20% in the past week, attributed to the production launch of its Brazilian factory and a positive market outlook for fuel vehicles[2] - NIO (9866 HK) experienced a 15% increase in stock price ahead of the launch of its new ES8 model[2] Healthcare Sector Developments - The Hang Seng Healthcare Index rebounded by 2.3%, with most major companies seeing stock price increases[3] - Rongchang Biologics (9995 HK) signed a deal with Santen Pharmaceutical (4536 JP) worth a total of HKD 1.395 billion, including a prepayment of HKD 250 million[3] - The demand for the RC28-E injection, targeting age-related macular degeneration and diabetic macular edema, is expected to be strong due to its effectiveness[3] Energy Sector Analysis - China Resources Power (836 HK) fell by 5.9% after reporting a 15.9% year-on-year decline in net profit to HKD 7.87 billion for the first half of FY25[4] - The renewable energy segment showed a slight increase in core earnings, while thermal power core earnings decreased by 2.7% to HKD 2.64 billion[4] Coal Industry Forecast - Yancoal Australia (3668 HK) reported a 61.2% drop in net profit for the first half of FY25, with revenues down 14.8% to AUD 268 million[5][6] - The average coal price fell by 15.3% to AUD 149 per ton, but a rebound is expected in the second half due to seasonal demand[6] - The company maintains its FY25 production guidance of 35-39 million tons of coal[7] Pharmaceutical Sector Performance - Hansoh Pharmaceutical (3692 HK) reported a 14.3% increase in revenue to RMB 7.43 billion for the first half of 2025, with net profit rising by 15.0% to RMB 3.14 billion[11] - The company’s innovative drugs are expected to drive rapid revenue growth, with significant clinical advancements reported[12][13] - Target price for Hansoh Pharmaceutical has been raised to HKD 42.75, maintaining an "overweight" rating[15]

Core Viewpoint - The company's 1H25 performance exceeded expectations, driven by milestone payments from collaboration with GSK, with revenue of 7.434 billion yuan and a net profit of 3.135 billion yuan, reflecting year-on-year growth of 14.3% and 15.0% respectively [1] Financial Performance - Revenue from innovative drugs and collaboration products reached 6.145 billion yuan, up 22.1% year-on-year, accounting for 82.7% of total revenue, an increase of 5.3 percentage points year-on-year [1] - The company reported collaboration revenue of 1.656 billion yuan, primarily from the upfront payment for oral GLP-1 licensed to Merck and milestone payments from GSK [1] - Excluding collaboration revenue, sales revenue was 5.777 billion yuan, reflecting a year-on-year increase of 13.2% [1] - By segment, oncology revenue was 4.53 billion yuan (up 21.3% YoY), driven by strong growth of Ameluz and GSK collaboration milestone revenue [1] - The company expects Ameluz's annual sales to reach 6 billion yuan [1] - Other segments included anti-infection revenue of 740 million yuan (up 4.8% YoY), central nervous system revenue of 770 million yuan (up 4.8% YoY), and metabolic revenue of 1.4 billion yuan (down 0.2% YoY) [1] - Gross margin remained stable at 91.1%, with selling expenses of 1.82 billion yuan (up 5.7% YoY), management expenses of 340 million yuan (up 135% YoY), and R&D expenses of 1.44 billion yuan (up 20.4% YoY) [1] Development Trends - The company is advancing its R&D pipeline, with core product Ameluz approved for four indications in China, and expects NDA approval for Ameluz in combination with chemotherapy for NSCLC in 2H25 [1] - HS-20093 (B7H3 ADC) has initiated Phase III clinical trials for SCLC in 2H24, with GSK planning to start key clinical studies by the end of 2025 [1] - HS-20089 (B7H4 ADC) has begun Phase III clinical trials for ovarian cancer in 1H25 [1] - HS-20094 (GLP-1/GIP dual-target) has started Phase III clinical trials for obesity or overweight in 2H24 [1] - The company has eight innovative drug pipelines approved for clinical trials in 1H25, including EGFR/c-Met ADC and KRAS G12D [1] - Future plans include accelerating license-in projects and overseas licensing of proprietary pipelines [1] Profit Forecast and Valuation - The company raised its profit forecast for 2025 and 2026 by 4.8% and 3.4% to 4.617 billion yuan and 4.841 billion yuan respectively, due to strong growth of Ameluz and BD-related payments [1] - The current stock price corresponds to 45.8x and 43.1x P/E for 2025 and 2026 [1] - The target price has been raised by 93.1% to 45.00 HKD, corresponding to 53.1x and 50.0x P/E for 2025 and 2026, indicating a potential upside of 15.9% [1]

Core Viewpoint - The company, Hansoh Pharmaceutical, reported a 14.3% year-on-year revenue growth in the first half of 2025, reaching 7.43 billion yuan, with a net profit attributable to shareholders increasing by 15.0% to 3.14 billion yuan, exceeding expectations due to the strong sales of innovative drugs and BD collaboration income [1] Group 1: Financial Performance - In the first half of 2025, the company's comprehensive gross margin remained stable at 91.1% [1] - The sales expense ratio decreased by 2.0 percentage points to 24.5% year-on-year [1] - R&D expenses increased by 20.4% to 1.44 billion yuan, with the R&D expense ratio rising from 18.4% in the first half of 2024 to 19.4% [1] Group 2: Innovative Drug and Collaboration Revenue - The revenue from innovative drugs and collaboration increased by 22.1% year-on-year to 6.15 billion yuan, contributing 82.7% to total revenue, up from 77.3% in the first half of 2024 [2] - The sales of oncology products reached 4.53 billion yuan, accounting for 61% of total revenue, driven by the sales growth of Ameluz and Huasenxinfu [2] - Two new indications for Ameluz received NMPA approval, which are expected to further boost sales [2] Group 3: Innovation Pipeline - The company has over 40 innovative drugs in development and more than 70 clinical trials ongoing, covering both oncology and non-oncology areas [3] - Eight innovative drugs entered clinical stages for the first time in the first half of 2025, including HS-10561 (BTK inhibitor) and HS-20108 (ADC) [3] - Three new pivotal Phase III clinical trials were initiated, including HS-20093 (B7-H3 ADC for bone and soft tissue sarcoma) [3] Group 4: Licensing Agreements - In June 2025, the company granted global rights (excluding Greater China) for HS-20094 (GLP-1/GIP) to Regeneron, including an upfront payment of 80 million USD and milestone payments totaling 1.93 billion USD [4] - The company previously licensed two ADC drugs to GSK and HS-10535 to MSD [4] - Ongoing clinical trials for HS-20093 and HS-20089 are targeting various cancers, with HS-20094 and HS-10374 also in advanced clinical research stages [4] Group 5: Earnings Forecast and Target Price - The earnings per share forecast for 2025 was raised from 0.73 yuan to 0.88 yuan, with subsequent years also seeing upward adjustments [4] - The target price was increased from 25.1 HKD to 43.8 HKD, indicating a 22% upside potential, while maintaining a buy rating [4]

Investment Rating - The report maintains a "Buy" rating for Hansoh Pharmaceutical [2][9][16] Core Views - Hansoh Pharmaceutical's 1H25 revenue increased by 14.3% year-on-year to Rmb7.43 billion, with net profit rising by 15.0% to Rmb3.14 billion, exceeding expectations due to strong sales of innovative drugs and BD collaboration revenue [5][12][16] - The company's gross margin remained stable at 91.1%, while the selling expense ratio decreased by 2.0 percentage points to 24.5% [5][12] - R&D expenses grew by 20.4% to Rmb1.44 billion, with the R&D expense ratio increasing to 19.4% from 18.4% in 1H24 [5][12] Revenue and Profitability - Innovative drugs and collaborative products contributed Rmb6.15 billion in revenue, a 22.1% increase year-on-year, accounting for 82.7% of total revenue [6][13] - Oncology product sales reached Rmb4.53 billion, representing 61% of total revenue, driven by the sales ramp-up of Ameile and Hansoh Xinfu [6][13] - The CNS and anti-infective sectors generated Rmb768 million and Rmb735 million in sales, respectively, together accounting for 20% of total revenue [6][13] Future Growth Drivers - The company has over 40 innovative drugs in development and more than 70 ongoing clinical trials across oncology and non-oncology fields [7][14] - Eight innovative drugs entered clinical stages for the first time in 1H25, with three new phase III pivotal registration trials initiated [7][14] - Successful licensing of HS-20094 (GLP-1/GIP) to Regeneron, with significant upfront and milestone payments, indicates strong collaboration potential [8][15] Financial Forecasts - EPS forecasts for 2025, 2026, and 2027 have been raised to Rmb0.88, Rmb0.95, and Rmb1.06, respectively [9][16] - The target price has been adjusted from HK$25.1 to HK$43.8, indicating a 22% upside potential [9][16] - Projected revenue and net profit growth rates for the coming years are 15.13% and 20.13% for 2025, respectively [10][19]

Core Viewpoint - The report from CMB International maintains a "Buy" rating for Hansoh Pharmaceutical (03692), highlighting its leadership in innovative drugs and international expansion, with a target price increase from HKD 33 to HKD 48, reflecting a projected dynamic P/E ratio of 2.2 times for next year [1] Group 1: Company Performance - Hansoh Pharmaceutical achieved strong double-digit sales growth in the first half of the year, particularly in its ADC and GLP-1 product lines, which continue to generate significant collaboration revenue [1] - The company has raised its full-year revenue guidance to a high double-digit percentage, previously set at a double-digit increase, with specific sales targets of RMB 6 billion for Amelot and RMB 10 billion for overall innovative drugs [1] Group 2: Future Outlook - CMB International expects Amelot's annual sales to have a growth potential of RMB 3 billion to RMB 4 billion, and is optimistic about the contribution of international performance following the normalization of business development activities [1] - The company plans to increase its R&D investment in the second half of the year, with an anticipated growth in R&D expenses of over 38%, leading to an overall increase of more than 30% for the year [1]

Group 1 - The core viewpoint of the report is that Hansoh Pharmaceutical (03692) is a leading prescription drug company with a significant share of innovative drugs and a strong international expansion process, maintaining a "Buy" rating and industry focus recommendation, with the target price raised from HKD 33 to HKD 48, equivalent to a projected dynamic P/E ratio of 2.2 times [1] - Hansoh Pharmaceutical's product sales continued to show strong double-digit growth in the first half of the year, with substantial contributions from BD (business development) collaborations in the ADC and GLP-1 product lines [1] - The company has raised its full-year revenue guidance to a high double-digit percentage, previously set at a double-digit increase, maintaining sales guidance for Amelot and overall innovative drugs at RMB 6 billion and RMB 10 billion respectively [1] Group 2 - The report indicates that the annual sales of Amelot still have a growth potential of RMB 3 billion to RMB 4 billion, and the company is optimistic about the performance contribution from product internationalization after normalizing BD [1] - The company plans to increase R&D investment in the second half of the year, with expected R&D expenses growing by over 38%, and an overall increase of more than 30% for the year [1]

Core Viewpoint - The company has raised its profit forecasts for 2025 and 2026 by 4.8% and 3.4% respectively, due to the growth of Amgen's product and BD-related payments, leading to a target price increase of 93.1% to HKD 45.00, reflecting a significant upside potential [1] Group 1: Financial Performance - The company's 1H25 performance exceeded expectations, with revenue of CNY 74.34 billion, a year-on-year increase of 14.3%, and a net profit of CNY 31.35 billion, up 15.0% [2] - The innovative drug revenue reached CNY 61.45 billion, growing by 22.1% year-on-year, accounting for 82.7% of total revenue, an increase of 5.3 percentage points year-on-year [3] - The oncology segment generated revenue of CNY 45.3 billion, a 21.3% increase year-on-year, primarily driven by the growth of Amgen's product and milestone payments from GSK [3] Group 2: Product Pipeline and Development - The core product Amgen has received approval for four indications in China, with expectations for additional approvals in 2H25 [4] - The company has initiated several clinical trials for its innovative drugs, including HS-20093 and HS-20089, with plans for further clinical research by partners [4] - The company aims to accelerate its license-in projects and overseas authorizations for its pipeline [4]

Group 1: Hansoh Pharmaceutical (3692 HK) - The company is experiencing strong growth driven by innovative drugs and business development (BD) collaborations, with a 14% year-on-year revenue increase to 7.4 billion RMB in 1H25, including 1.7 billion RMB from collaborations [1] - Product sales, excluding collaboration income, grew by 13%, with innovative drug revenue increasing by 22% to 6.1 billion RMB, accounting for 82.7% of total revenue [1] - The company raised its full-year revenue guidance to a high double-digit percentage, maintaining sales targets for Amelot and overall innovative drugs at 6 billion and 10 billion RMB, respectively [1] Group 2: Amelot's Clinical Applications - Amelot's rapid market penetration is primarily driven by its first-line NSCLC indication, with additional approvals for adjuvant and III phase maintenance treatments in the first half of the year [2] - The sales peak forecast for Amelot has been raised to 9.7 billion RMB, with expectations of limited price reductions during the upcoming medical insurance negotiations [2] Group 3: China Biologic Products (1177 HK) - The company reported an 11% year-on-year revenue growth to 17.6 billion RMB in 1H25, driven by innovative product sales and investment income, with adjusted net profit increasing by 101% [3] - Revenue from innovative products grew by 27% to 7.8 billion RMB, contributing 44.4% to total revenue, an increase of 5.8 percentage points year-on-year [3] - The company maintains its guidance for full-year revenue to achieve double-digit growth [3] Group 4: Long-term Growth Drivers - The company is developing a comprehensive pipeline with differentiated self-research products, expecting significant BD opportunities from 2H25 to 2026, focusing on various innovative drug candidates [4][6] - The acquisition of Lixin Pharmaceutical has further expanded the company's oncology pipeline, with management projecting over 35 innovative products by 2027, contributing 60% to revenue [6] Group 5: Tongcheng Travel (780 HK) - The company’s Q2 performance met expectations, with a projected 15% year-on-year revenue growth in core OTA business for Q3, driven by a 10-15% increase in accommodation nights [7] - The full-year core OTA business is expected to grow by 16%, with operating profit margins improving by approximately 2 percentage points due to strategic shifts towards enhancing user ARPU and profitability in new business areas [7]