Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown rapid growth in clinical business and possesses a rich reserve of innovative assets [1] - In H1 2025, the company achieved operating revenue of 590 million yuan, a year-on-year increase of 4.87%, while the net profit attributable to the parent company was 130 million yuan, a year-on-year decrease of 12.61% [4][5] - The second quarter of 2025 saw revenue of 359 million yuan, a year-on-year increase of 15.73%, and a net profit of 101 million yuan, a year-on-year increase of 32.23% [4] Summary by Sections Clinical Business and R&D - The company has invested continuously in R&D, with over twenty types of proprietary Class 1 new drugs in the pipeline, covering various important therapeutic areas [5][6] - Key projects include: 1. STC007 injection for postoperative pain and chronic kidney disease-related itching, with ongoing clinical trials [5] 2. STC008 injection targeting cachexia in advanced solid tumors, with all healthy subjects recruited for Phase Ia trials [5] 3. ZM001 injection, a CAR-T cell therapy for moderate to severe SLE, currently in Phase I trials [5] 4. IC19, a universal CAR-T targeting CD19, in the IIT stage [6] Financial Performance - In H1 2025, the company’s pharmaceutical research revenue was 203 million yuan (down 40.80%), while clinical trials and bioanalysis revenue was 279 million yuan (up 29.05%) [7] - The company expects revenue for 2025-2027 to be 1.306 billion, 1.587 billion, and 1.841 billion yuan, respectively, with year-on-year growth rates of 21.1%, 21.5%, and 16.0% [8] - The net profit attributable to the parent company is projected to be 236 million, 307 million, and 345 million yuan for the same period, with growth rates of 32.8%, 30.3%, and 12.4% [8] Market Position and Future Outlook - The company is expected to continue increasing the number of proprietary products approved for market, which will enhance revenue post-R&D phase [7] - The company maintains a strong focus on innovation and expanding its clinical business, which is expected to contribute significantly to future growth [5][7]