Core Viewpoint - Dongguan Holdings announced progress in the development of HECN30227, a siRNA drug targeting hepatitis B virus, and advancements in the small nucleic acid platform research [1] Group 1 - Dongguan Holdings responded to investor inquiries on its interactive platform [1] - Dongyangguang Pharmaceutical has made certain advancements in the clinical phase I of HECN30227 [1] - Further details can be found in the relevant announcements released by Dongyangguang Pharmaceutical [1]

Group 1: Overseas Service Industry - The investment rating for the overseas service industry is positive, with Macau's gaming revenue maintaining double-digit growth and visitor numbers reaching historical highs [1][3]. - In December, Macau's gross gaming revenue was 20.9 billion MOP, representing a year-on-year increase of 14.8%, and recovering to 91% compared to the same period in 2019 [3]. - The total number of visitors to Macau in 2025 is projected to be 40.06 million, a year-on-year increase of 14.7%, marking a historical high [3]. Group 2: Overseas Pharmaceutical Industry - The investment rating for the overseas pharmaceutical industry is optimistic, with significant advancements in drug approvals and clinical trials [2][6]. - BeiGene's BCL2 inhibitor received conditional approval in China for treating chronic lymphocytic leukemia and mantle cell lymphoma, marking it as the first approved BCL2 inhibitor for MCL in the country [6][7]. - The Hang Seng Healthcare Index rose by 11.15%, outperforming the Hang Seng Index by 9.12 percentage points [6]. Group 3: Overseas Education Industry - The investment rating for the overseas education industry is favorable, with a focus on vocational training and spring enrollment [12][14]. - The education index increased by 2.7% in the first week of January, outperforming the Hang Seng National Enterprises Index by 1.3 percentage points [12]. - China Oriental Education is recommended as a top pick due to its proactive operational adjustments and expected enrollment growth in the second half of the year [14].

Group 1: Overseas Social Services - The investment rating for the overseas social services sector is positive, with a focus on Macau's gaming revenue maintaining double-digit growth and record visitor numbers during New Year's [1][4]. - In December, Macau's gross gaming revenue reached 20.9 billion MOP, representing a year-on-year increase of 14.8%, and recovering to 91% compared to the same period in 2019. The total gross gaming revenue is expected to grow by 9.1% in 2025 [4]. - The total number of visitors to Macau in 2025 is projected to be 40.06 million, a year-on-year increase of 14.7%, marking a historical high. On New Year's Day 2026, the number of visitors reached 188,000, the highest ever for that day [4]. Group 2: Overseas Pharmaceuticals - The investment rating for the overseas pharmaceuticals sector is also positive, with significant developments in drug approvals and clinical trials [2][7]. - BeiGene's BCL2 inhibitor received conditional approval in China for treating chronic lymphocytic leukemia and mantle cell lymphoma, marking it as the first and only BCL2 inhibitor approved for MCL in the country [8][9]. - The Hang Seng Healthcare Index rose by 11.15%, outperforming the Hang Seng Index by 9.12 percentage points, indicating strong market performance [7]. Group 3: Overseas Education - The investment rating for the overseas education sector is favorable, with a focus on vocational education and training [3][14]. - The education index increased by 2.7%, outperforming the Hang Seng Index by 1.3 percentage points, indicating a positive market trend [14]. - The report suggests focusing on Hong Kong vocational education companies, particularly China Oriental Education, which is expected to see enrollment growth due to strategic adjustments in response to market demand [16].

Major Events - Yunzhisheng (09678) secured a regional medical cooperation contract worth over 20 million [1] - Kelun-Biotech (06990) received breakthrough therapy designation from NMPA for TROP2 ADC drug in combination with pembrolizumab for treating PD-L1 positive locally advanced or metastatic non-small cell lung cancer [1] - InSilico Medicine (03696) entered into an 8.88 billion USD multi-year collaboration for anti-tumor drug development with Sihuiya [1] - Hutchison China MediTech (00013) is conducting a Phase III study on surufatinib combined with camrelizumab for first-line treatment of pancreatic ductal adenocarcinoma [1] - Ascletis Pharma-B (01672) announced FDA approval for IND of ASC30 in a 13-week Phase II study in diabetic patients [1] - Foryou Medical (01696) received quality standard inspection approval for its reauthorized injectable botulinum toxin from the Chinese National Medical Products Administration [1] - CanSino Biologics (06185) obtained clinical trial approval in China for its 24-valent pneumococcal polysaccharide conjugate vaccine [1] - Stone Group (02005) received drug production registration approval for perindopril and amlodipine tablets [1] - Sunny Optical Technology (02382) proposed to spin off its automotive optical business for independent listing on the Hong Kong Stock Exchange [1] - Dongyang Sunshine Pharmaceutical (06887) completed the first patient enrollment for HECN30227 in China [1] - Haitong International's subsidiary plans to sell 100% equity of Guohua Machinery for 342 million [1] - Yuexiu Property (00123) subsidiary intends to sell 73.74% actual equity in Hangzhou Yueyun [1] - CIMC Group (02039) subsidiary CIMC Shilianda plans to introduce strategic investors through capital increase and transfer of a small number of old shares [1] Operating Performance - Chifeng Jilong Gold Mining (06693) expects annual net profit attributable to shareholders to be approximately 3 billion to 3.2 billion, an increase of about 70% to 81% year-on-year [2] - Corning Hospital (02120) anticipates outpatient visits to reach approximately 720,200 in 2025, a year-on-year increase of 29% [2] - Seres (09927) reported total vehicle sales of 63,700 units in December, a year-on-year increase of 53.54% [2] - Xiehe New Energy (00182) reported an equity power generation of 790.32 GWh in December [2] - Country Garden (02007) reported contract sales amounting to approximately 2.69 billion attributable to shareholders in December [2]

Group 1 - The core product HECN30227 is a first-in-class drug developed by the company, targeting both cccDNA and intDNA sources of hepatitis B surface antigen (HBsAg) with global intellectual property rights [1] - Preclinical data indicates that HECN30227 exhibits pan-genotypic activity, effectively reducing HBsAg levels and maintaining efficacy against nucleoside-resistant strains, outperforming clinical competitors in both in vitro and in vivo efficacy [1] - HECN30227 utilizes the company's unique HEC GalNova (N-acetylgalactosamine) liver-targeted delivery system, achieving precise and efficient liver delivery while significantly reducing off-target risks [1] Group 2 - Since 2022, the company has entered the small nucleic acid field, establishing a comprehensive R&D platform covering target discovery, sequence design and synthesis, chemical modification, delivery technology, and biological evaluation, positioning itself among the top tier in China [2] - The company has applied for over 50 patents and is developing more than 10 small nucleic acid pipelines across four major areas: anti-infection, cardiovascular-renal-metabolic, respiratory system, and oncology, with plans to advance multiple small nucleic acid drugs into clinical stages annually [2] Group 3 - Key preclinical products include a hepatitis B ASO, which is being developed alongside a "siRNA + ASO + immune modulator" triple therapy to comprehensively suppress HBV and HBsAg, showing superior efficacy compared to competitors [3] - The dual-target series aims to silence two pathogenic genes or multiple regions of the same gene, providing efficient solutions for complex diseases, with several molecules demonstrating strong and lasting activity in large animal models for conditions like hyperlipidemia and hypertension [3] - The company is also advancing dual-target pipelines for conditions such as MASH, as well as fat-targeting, lung-targeting, and antibody delivery (AOC) pipelines, with plans to progress these to clinical stages [3] Group 4 - The company is leading the innovation wave of small nucleic acid drugs in China through a comprehensive approach of "technology + pipeline + industrialization," with ongoing investments in the small nucleic acid technology platform to address unmet clinical needs [4]

Core Insights - Dongyangguang Pharmaceutical (06887) has announced the development of HECN30227, a first-in-class drug with global intellectual property rights, capable of eliminating both cccDNA and intDNA derived HBsAg, showing superior efficacy compared to clinical competitors [1] - The drug utilizes the unique HEC GalNova liver-targeted delivery system, which enhances precision and reduces off-target risks, with the first domestic subject enrolled in clinical trials [1] - HECN30227's combination therapy with the immunomodulator HEC191834 has been recognized as a "Poster of Distinction" at the 2025 AASLD annual meeting, indicating high international academic recognition for its clinical development potential [1] Research and Development - Since 2022, the company has entered the small nucleic acid field, establishing a comprehensive R&D platform covering target discovery, sequence design and synthesis, chemical modification, delivery technology, and biological evaluation, positioning itself among the top tier in China [2] - The company has applied for over 50 patents and is developing more than 10 small nucleic acid pipelines across four major areas: anti-infection, cardiovascular-renal-metabolic, respiratory system, and oncology, with plans to advance multiple small nucleic acid drugs into clinical stages annually [2] Clinical Pipeline - Key preclinical products include HECN30227 and a "siRNA + ASO + immunomodulator" triple therapy for hepatitis B, which shows superior efficacy compared to competitors [3] - The dual-target series aims to silence two pathogenic genes or multiple regions of the same gene, providing effective solutions for complex diseases, with several molecules demonstrating strong and lasting activity in large animal models [3] - The company is also advancing dual-target pipelines for conditions like MASH, as well as fat-targeting, lung-targeting, and antibody delivery (AOC) pipelines, with plans to progress these to clinical stages [3] Strategic Direction - The company is leading the innovation wave in China's small nucleic acid drugs through a "technology + pipeline + industrialization" strategy, focusing on building its small nucleic acid technology platform and addressing unmet clinical needs [4]

Group 1 - The core product HECN30227 is a first-in-class drug developed by the company, targeting both cccDNA and intDNA sources of hepatitis B surface antigen (HBsAg) with global intellectual property rights [1] - Preclinical data indicates that HECN30227 exhibits pan-genotypic activity, effectively reducing HBsAg levels and maintaining efficacy against nucleoside drug-resistant strains, outperforming clinical competitors in both in vitro and in vivo efficacy [1] - HECN30227 utilizes the company's unique HEC-GalNova liver-targeted delivery system, achieving precise and efficient liver delivery while significantly reducing off-target risks [1] Group 2 - Since 2022, the company has entered the small nucleic acid field, establishing a comprehensive R&D platform covering target discovery, sequence design and synthesis, chemical modification, delivery technology, and biological evaluation, positioning itself among the top tier in China [2] - The company has applied for over 50 patents and developed more than 10 small nucleic acid pipelines across four major areas: anti-infection, cardiovascular-kidney-metabolism, respiratory system, and oncology, with plans to advance multiple small nucleic acid drugs into clinical stages annually [2] - The company is leading the innovation wave in China's small nucleic acid drugs through a multi-faceted approach of "technology + pipeline + industrialization," aiming to address unmet clinical needs and provide globally competitive "China-made" treatment solutions [2]

Core Viewpoint - Dongyang Sunshine Pharmaceutical (06887) is a leading company in the influenza sector with a solid foundation and a rich pipeline of innovative products, focusing on three main areas: anti-infection, chronic diseases, and oncology. The company maintains a leading position in the anti-infection field, particularly in influenza, hepatitis C, and hepatitis B, and has been given a "Buy" rating by Huafu Securities [1]. Group 1: Anti-Infection - The company holds a leading position in the influenza market, with Oseltamivir ranking first in domestic market share and possessing the largest production base globally, ensuring sufficient supply capacity [2]. - The hepatitis C pipeline includes the approval of pan-genotypic therapies, with NMPA approvals for Phosphoribosyl-1-pyrophosphate and Acalabrutinib expected in February and March 2025, respectively [2]. - For hepatitis B, the fastest progress is seen with Mofetil, which is the only product in China entering Phase III clinical trials, while the siRNA therapy (HECN30227) is set to enter clinical stages in October 2025 [2]. Group 2: Chronic Diseases - Ifenprodil is identified as a potential blockbuster drug (BIC) targeting the $4 billion global market for idiopathic pulmonary fibrosis, with Phase I trials completed in China and the US, and promising Phase II data showing a 96% delay in decline compared to placebo [3]. - Insulin products are nearing FDA approval, with Glargine expected to receive BLA approval in the first half of 2026, while Aspart has a Pre-IND application submitted, with plans to file for BLA by the end of 2025 and anticipate approval by the end of 2026 [3]. Group 3: Oncology - The company expects the approval of Clifosfamide for acute myeloid leukemia (AML) by 2027, having formed a partnership with 3SBio for this product [4]. - The oncology pipeline is rich, including Lenvatinib (Phase III) for esophageal cancer, HEC53856 (Phase II) for chemotherapy-induced anemia, and HEC201625 (upcoming IND) as an oral PD-L1 small molecule, with ongoing efforts in new technology areas such as ADC and TCE [4]. Group 4: Profit Forecast - The company is projected to achieve net profits attributable to shareholders of 250 million, 540 million, and 930 million yuan for the years 2025, 2026, and 2027, respectively, with price-to-sales ratios of 4.5, 3.7, and 3.2 times, indicating a strong value proposition compared to peers [5].

Core Viewpoint - Dongyangguang Pharmaceutical has made significant strides in the field of innovative drug development, particularly with its core drug HECN30227, which offers hope for clinical cure for hepatitis B patients in China [2][3]. Company Development - Established in 2003, Dongyangguang Pharmaceutical has transformed from a generic drug brand to a comprehensive pharmaceutical company focused on innovative drugs, targeting areas such as infections, chronic diseases, and tumors [2][3]. - The company has developed three self-researched new drugs and has nearly 50 new drugs in the pipeline, actively seeking international expansion for growth [3][4]. Financial Performance - From 2022 to 2024, the total revenue is projected to reach 14.2 billion yuan, with research and development investment amounting to 2.5 billion yuan over the past three years, and profits exceeding 2.1 billion yuan in the last two years [4][5]. Innovation and R&D - The company emphasizes the long-term commitment required for innovative drug development, with the first new drug, phosphoric acid emetine, taking ten years from project initiation to market launch [5]. - Dongyangguang Pharmaceutical has a robust R&D system, including a modern factory with an annual production capacity of 1.8 billion tablets and a national key laboratory for new anti-infection drug research [6]. AI and Digitalization - The company is actively integrating AI into its drug discovery process, having established a partnership with Huawei Cloud and DeepMind Technology to create an "AI + biomedicine" ecosystem [7]. International Expansion - Dongyangguang Pharmaceutical aims to expand internationally, with a sales network covering eight countries, including the US, Germany, and the UK [9][10]. - The company has three clear pathways for international growth: internationalization of mature products, authorized cooperation for innovative drugs, and overseas market entry for self-developed products [10]. Commitment to Quality - Dongyangguang Pharmaceutical is committed to providing high-quality, affordable insulin products for the global diabetes population, aiming to be the first domestic company to obtain approval for its insulin products in the US [10][11].

Core Viewpoint - Dongyangguang Pharmaceutical's HECN30227, a self-developed siRNA therapy for chronic hepatitis B, has received implied approval for clinical trials, marking a significant advancement as no siRNA drugs for hepatitis B have been approved globally [1][3]. Group 1: Clinical Trial Approval - The National Medical Products Administration's Drug Evaluation Center has granted implied permission for HECN30227 to conduct clinical trials for chronic hepatitis B [1][2]. - Chronic hepatitis B is a severe global public health issue, with approximately 75 million chronic HBV infections in China, highlighting the urgent need for new treatment options [3]. Group 2: Drug Development and Mechanism - HECN30227 is a first-class new drug developed by Dongyangguang, utilizing a small nucleic acid technology platform, targeting both cccDNA and intDNA sources of hepatitis B surface antigen (HBsAg) [3]. - Preclinical data indicate that HECN30227 has pan-genotype activity, effectively reducing HBsAg levels and maintaining efficacy against nucleoside-resistant strains, outperforming clinical competitors [3]. Group 3: Delivery System and Combination Therapy - The drug employs Dongyangguang's unique HEC-GalNova liver-targeted delivery system, ensuring precise liver delivery while significantly reducing off-target risks [3]. - The company is concurrently developing a combination therapy of "siRNA + ASO + immune modulators" to comprehensively suppress HBV and HBsAg, aiming for a functional cure for hepatitis B [3][7]. Group 4: Recognition and Future Directions - Recent preclinical research on the combination of HECN30227 and a high-selectivity hTLR8 immune agonist was recognized at the 2025 AASLD annual meeting, indicating strong international academic validation of its clinical development potential [4][7]. - Dongyangguang continues to focus on the anti-infection field, advancing functional cure strategies centered around HECN30227 and exploring its clinical application potential in broader patient populations [7].