Core Viewpoint - Pfizer has unveiled a significant R&D plan for 707/PF'4404 (PD-1/VEGF) in collaboration with 3SBio, with an accelerated pace and breadth beyond expectations, aiming to initiate four global Phase III clinical trials by 2026 across five major first-line indications [1][2] Group 1: Clinical Development - Pfizer plans to launch four Phase III clinical trials in 2026 targeting first-line squamous/non-squamous NSCLC, mCRC, endometrial cancer, and urothelial carcinoma [2] - The company has already completed the first patient enrollment for Phase III trials targeting first-line NSCLC and mCRC, as well as Phase II/III trials for first-line ES-SCLC [2] - Pfizer will also initiate Phase III clinical studies combining 707 with various ADCs, such as Padcev for first-line treatment of urothelial carcinoma [2] Group 2: Competitive Landscape - Four multinational corporations (MNCs) are competing in the PD-(L)1/VEGF space, including Pfizer, BMS, Merck, and AbbVie, with Pfizer expected to stand out due to its "speed, breadth, and depth" advantages [2] - BMS and BioNTech have announced extensive clinical plans, but their progress in core indications like first-line NSCLC and mCRC lags behind Pfizer [2] Group 3: Pipeline and Financials - 3SBio is increasing R&D investments with multiple pipelines expected to yield clinical data, including 705 (PD-1/HER2) and 706 (PD-1/PD-L1) in Phase II trials in China [3] - The core business fundamentals of 3SBio remain robust, with projected revenue of approximately 4.2 billion yuan in 2025, including 2.89 billion yuan from the upfront payment for 707 licensing [3] - Excluding the upfront payment, the internal business revenue of 3SBio is estimated to grow by about 9% year-on-year [3] Group 4: Investment Rating - The company maintains a "Buy" rating with a target price of 37.43 HKD, supported by an estimated net cash position of approximately 13 billion yuan [4] - Confidence in 707 becoming a global blockbuster is reaffirmed due to Pfizer's unexpected clinical advancement [4]

Core Viewpoint - The company reported its 1H25 performance, showing a slight decline in revenue but a significant increase in net profit, aligning with market expectations [1][2]. Financial Performance - Revenue for 1H25 was 4.356 billion yuan, a year-on-year decrease of 0.8% [1] - Net profit attributable to shareholders was 1.358 billion yuan, a year-on-year increase of 24.6% [1] - Adjusted net profit was 1.136 billion yuan, a year-on-year increase of 2.1%, meeting market expectations [1] Business Trends - Sales of core commercial products faced pressure in 1H25: - Revenue from Teva Australia was 2.371 billion yuan, down 4.2%, accounting for 54.4% of total revenue [1] - Revenue from Yibiao was 346 million yuan, down 12.1% [1] - Revenue from Cyber was 110 million yuan, down 10.4% [1] - Combined revenue from the above two products accounted for 10.5% of total revenue [1] - Revenue from the hair loss sector was 690 million yuan, up 23.8%, accounting for 15.8% of total revenue [1] - Revenue from Mandi was 682 million yuan, up 24.0% [1] - CDMO business achieved revenue of 101 million yuan, up 76.1% [1] - Revenue from Sanofi was 642 million yuan, up 7.6% [1] Research and Development - As of the end of 1H25, the company had a rich pipeline of 30 products under research, covering areas such as hematology, oncology, autoimmune diseases, and nephrology [2] - Notable products include: - SSGJ-706 (anti-PD-1/PD-L1 bispecific antibody) approved for two Phase II clinical trials [2] - SSGJ-705 (anti-PD-1/HER2 bispecific antibody) has received FDA approval for IND in the U.S. [2] - SSS59 (MUC17/CD3/CD28 trispecific antibody) has entered Phase I clinical trials for solid tumors [2] Collaborations and Partnerships - The company continues to engage in external collaborations: - Granted Pfizer global rights to SSGJ-707 (PD-1/VEGF bispecific antibody), receiving a $1.25 billion upfront payment and potential future milestone payments exceeding $4.8 billion [2] - Collaborated with Haihe Pharmaceuticals for oral paclitaxel, which is under preliminary review for inclusion in the 2025 National Medical Insurance Directory [2] - Partnered with Hanyu Pharmaceuticals for semaglutide injection, completing patient enrollment for Phase III clinical trials [2] - Signed a collaboration with Ying'en Bio for commercialization rights of DB-1303 (HER2 ADC) in mainland China, Hong Kong, and Macau [2] Profit Forecast and Valuation - The company raised its net profit forecasts for 2025 and 2026 by 186.5% and 138.3% to 6.249 billion yuan and 5.664 billion yuan, respectively [2] - The current stock price corresponds to 11.3x and 12.3x P/E ratios for 2025 and 2026 [2] - The target price was raised by 39.9% to 36.50 HKD, implying a 14.9% upside potential [2]

Core Viewpoint - CICC has raised the net profit estimates for 2025 and 2026 for Sangfor Pharmaceuticals (01530) by 186.5% and 138.3% to CNY 6.249 billion and CNY 5.664 billion respectively, reflecting a positive outlook on the company's BD revenue recognition [1] Group 1: Financial Performance - In 1H25, the company's revenue was CNY 4.356 billion, a slight decline of 0.8% year-on-year; however, the net profit attributable to the parent company increased by 24.6% to CNY 1.358 billion, and the adjusted net profit rose by 2.1% to CNY 1.136 billion, meeting market expectations [1] - The current stock price corresponds to a price-to-earnings ratio of 11.3x for 2025 and 12.3x for 2026, with a target price raised by 39.9% to HKD 36.50, implying a potential upside of 14.9% [1] Group 2: Product Sales Performance - The sales of the company's core commercial products faced pressure in 1H25, with revenue from Teva Australia declining by 4.2% to CNY 2.371 billion, accounting for 54.4% of total revenue; revenue from Yibiao fell by 12.1% to CNY 346 million, and revenue from Cyberol decreased by 10.4% to CNY 110 million, together representing 10.5% of total revenue [2] - Revenue from the hair loss sector grew by 23.8% to CNY 690 million, accounting for 15.8% of total revenue, with Mandai contributing CNY 682 million, a 24.0% increase [2] - The CDMO business achieved revenue of CNY 101 million in 1H25, a significant increase of 76.1% year-on-year, while Sangfor Guojian's revenue rose by 7.6% to CNY 642 million [2] Group 3: R&D Pipeline - As of the end of 1H25, the company has a rich pipeline of 30 products under research, covering areas such as hematology and oncology, autoimmune diseases, and nephrology [3] - Notable products include SSGJ-706 (anti-PD-1/PD-L1 bispecific antibody) which has received approval for two Phase II clinical trials, and SSGJ-705 (anti-PD-1/HER2 bispecific antibody) which is currently enrolling patients for Phase II trials in China [3] Group 4: External Collaborations - The company has continued its external collaborations, granting Pfizer global rights to SSGJ-707 (PD-1/VEGF bispecific antibody) for a total of USD 12.5 billion in upfront payments and potential milestone payments exceeding USD 4.8 billion, along with double-digit sales sharing [4] - The company is also collaborating with Haihe Pharmaceuticals for oral paclitaxel, which has entered the preliminary review list for the 2025 National Medical Insurance Directory adjustment [4] - Additionally, the company has partnered with Hanyu Pharmaceuticals for the completion of patient enrollment in the Phase III clinical trial of semaglutide injection for weight loss indications [4]