Core Viewpoint - Tibet Pharmaceutical plans to invest $60 million in Accuredit Therapeutics Limited to acquire a 40.82% stake, aiming to enhance sustainable development and overcome R&D bottlenecks [1] Group 1: Investment Details - The investment will be made through a wholly-owned subsidiary, with the major shareholder's affiliate also investing $15 million for a 10.20% stake, resulting in a combined holding of over 51% [1] - The investment aligns with the company's strategy to focus on core business while expanding its product pipeline through both in-house and collaborative R&D efforts [1] Group 2: Target Company Overview - Accuredit Therapeutics specializes in developing in vivo gene editing technologies and products based on LNP and other non-viral vectors, aiming to provide innovative treatment solutions with cost advantages [1] - The core asset of Accuredit is its domestic holding company, Ruizheng Gene (Suzhou) Co., Ltd., which has established an end-to-end gene editing technology platform [2] Group 3: Product Pipeline - Key products in development include ART001, which targets transthyretin amyloidosis (ATTR) and has received orphan drug designation from the FDA, currently undergoing I/IIa clinical trials in China [2][3] - Another promising product, ART002, focuses on PCSK9 and shows potential to significantly reduce LDL-C levels in patients with familial hypercholesterolemia, addressing limitations of existing PCSK9 inhibitors [3] Group 4: Market Potential - The PCSK9 inhibitors market is projected to reach $4.2 billion in global sales by 2024, indicating a strong commercial outlook for ART002 [3] - Besides ART001 and ART002, Ruizheng Gene's pipeline also targets metabolic diseases, particularly in the liver, suggesting a broad potential market [4] Group 5: Company Performance - Tibet Pharmaceutical reported revenue and profit growth in the first half of 2025, driven by stable contributions from its existing products and an 18.83% increase in other product revenues [4] - The company has previously engaged in acquisitions and collaborations to expand its product line, including a $30 million investment in Chentai Pharmaceutical for a 13.04% stake [4]

Core Viewpoint - The report highlights the stable performance of Tibet Pharmaceutical (西藏药业) and its strategic investment in innovative drugs to create new growth opportunities, maintaining a "buy" rating for the stock [1]. Financial Performance - In the first half of 2025, the company achieved revenue of 1.651 billion yuan, a year-on-year increase of 2.23%. However, the net profit attributable to shareholders decreased by 8.96% to 567 million yuan. The net profit after deducting non-recurring items was 543 million yuan, up 3.69% year-on-year. The net cash flow from operating activities was 600 million yuan, an increase of 0.93% [2]. Business Operations - The main business remains robust, with the sales of the primary product, New Active Substance, reaching 4.17 million units and generating revenue of 1.456 billion yuan, accounting for 88.36% of total sales, which is a 0.41% increase year-on-year. The company is expanding its production capacity for New Active Substance, with a new production line approved and expected to reach an annual capacity of 15 million units [3]. Investor Returns - The company emphasizes investor returns through high cash dividends, distributing approximately 631 million yuan in total dividends for 2024, which is 60% of the net profit attributable to shareholders. For the first half of 2025, the company plans to distribute a cash dividend of 8.81 yuan per 10 shares, accounting for 50.05% of the net profit attributable to shareholders [4]. Strategic Investments - The company announced a plan to invest 60 million USD in Accuredit Therapeutics Limited through its wholly-owned subsidiary, acquiring a 40.82% stake. This investment is part of a broader strategy to enter the innovative drug market, with Accuredit's core asset being Suzhou Rui Zheng Gene, which has received FDA clinical approval for its gene editing products [5]. Earnings Forecast - The company forecasts revenues of 2.923 billion yuan, 3.157 billion yuan, and 3.463 billion yuan for 2025, 2026, and 2027, respectively. The net profits are projected to be 893 million yuan, 967 million yuan, and 1.066 billion yuan for the same years, with corresponding EPS of 2.77 yuan, 3.00 yuan, and 3.31 yuan. The current stock price corresponds to PE ratios of 17.6, 16.3, and 14.8 times for the respective years [6].

Investment Rating - The report maintains a "Buy" investment rating for the company [9] Core Views - The company's main business remains stable, with a slight revenue increase of 2.23% year-on-year, achieving revenue of 1.651 billion yuan in the first half of 2025. However, the net profit attributable to shareholders decreased by 8.96% to 567 million yuan [1][2] - The company is focusing on investor returns by implementing a high cash dividend policy, distributing a total of approximately 631 million yuan in dividends in 2024, which accounts for 60% of the net profit attributable to shareholders [3] - The company is investing in innovative drug companies to create new growth curves, with a planned investment of 60 million USD in Accuredit Therapeutics Limited, acquiring a 40.82% stake [4] Summary by Sections Main Business Performance - In the first half of 2025, the company achieved revenue of 1.651 billion yuan, with the main product, New Active Substance, selling 4.17 million units and generating revenue of 1.456 billion yuan, accounting for 88.36% of total revenue, a year-on-year increase of 0.41%. Other products generated revenue of 192 million yuan, a year-on-year increase of 18.83% [2] Cash Dividend Policy - The company has actively implemented stable cash dividend measures, with a proposed cash dividend of 8.81 yuan per 10 shares for the first half of 2025, which represents 50.05% of the net profit attributable to shareholders for that period [3] Investment in Innovative Drugs - The company announced an investment of 60 million USD in Accuredit Therapeutics Limited, acquiring a 40.82% stake. The core asset of Accuredit is Suzhou Rui Zheng Gene, which is the first company in China to enter clinical research for in vivo gene editing products based on LNP [4][8] Financial Forecast - The company is projected to achieve revenues of 2.923 billion yuan, 3.157 billion yuan, and 3.463 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 893 million yuan, 967 million yuan, and 1.066 billion yuan for the same years [9][11]

Core Viewpoint - Tibet Pharmaceutical plans to establish a wholly-owned subsidiary, TopRidge Pharma Limited, in Hong Kong to enhance sustainable development and overcome research and development bottlenecks [1] Group 1: Company Overview - Accuredit Therapeutics Limited focuses on developing in vivo gene editing technologies and products based on LNP and other non-viral vectors, aiming to provide innovative treatment solutions that require only a single administration for patients globally, with cost advantages [1] - Ruizheng Gene (Suzhou), established in 2021, specializes in the development, industrialization, and commercialization of in vivo gene editing drugs based on non-viral vectors, supported by a core team with successful experience across the entire biopharmaceutical cycle [1] Group 2: Product Pipeline - Key products under development by Ruizheng Gene include ART001, targeting transthyretin amyloidosis (ATTR), and ART002, aimed at familial hypercholesterolemia, with additional products focusing on metabolic diseases, particularly in the liver disease sector [1]