Core Viewpoint - The approval of Ryaltris® by the National Medical Products Administration marks a significant milestone for the company, introducing a new combination nasal spray for allergic rhinitis in China, which is expected to meet the clinical needs of a large patient population and reshape the market landscape dominated by foreign products [1][4][10] Market Opportunity - Allergic rhinitis is a chronic condition affecting approximately 10% to 20% of the global population, with China having a prevalence rate of about 17.6%, translating to nearly 250 million affected individuals [1][4] - The market for allergic rhinitis medications in China is projected to grow from 43.275 billion RMB in 2024 to 50.090 billion RMB in 2028, with a compound annual growth rate of approximately 3.72% [4] Product Details - Ryaltris® is a novel combination nasal spray that provides symptomatic relief for moderate to severe seasonal allergic rhinitis in adults and children aged 6 and above, and for perennial allergic rhinitis in adults and children aged 12 and above [5] - Clinical data from Phase III trials indicate that Ryaltris® outperformed two existing single-agent nasal sprays, demonstrating superior efficacy and safety [5] Competitive Landscape - Prior to Ryaltris®'s approval, the Chinese market primarily featured single-agent formulations, predominantly from foreign companies, with no approved combination nasal sprays [4][5] - The introduction of Ryaltris® is expected to fill a significant clinical gap and challenge the current market dominance of foreign products [4][5] Company Strategy - The company has a diversified pipeline in the respiratory and critical care sectors, including multiple high-potential products aimed at addressing various respiratory conditions [6][7] - The company plans to continue its focus on innovation and global expansion, aiming to develop a comprehensive product portfolio for chronic airway diseases and critical care [10]

Core Insights - The approval of Ryaltris® (GSP 301 NS) by the National Medical Products Administration marks a significant advancement in the treatment of allergic rhinitis in China, introducing a new combination therapy for patients [1][6] - The market for allergic rhinitis treatments in China is projected to grow significantly, with an estimated increase from 43.275 billion RMB in 2024 to 50.09 billion RMB by 2028, reflecting a compound annual growth rate of approximately 3.72% [5] - Ryaltris® is the first innovative combination nasal spray for allergic rhinitis in China, addressing a clinical need and potentially altering the current market landscape dominated by foreign products [6][7] Market Demand and Patient Demographics - Allergic rhinitis is a chronic condition affecting a large population, with approximately 17.6% of adults in China suffering from it, translating to nearly 250 million individuals, including 130 million with moderate to severe persistent symptoms [2][5] - The prevalence of allergic rhinitis in China is expected to rise, with projections indicating nearly 270 million patients by 2033 [2] Product and Clinical Efficacy - Ryaltris® combines an antihistamine and a corticosteroid, providing a more effective treatment option for moderate to severe seasonal and perennial allergic rhinitis, which has shown superior efficacy compared to existing single-agent treatments [6][8] - Clinical data from Phase III trials indicate that Ryaltris® outperformed two existing single-agent nasal sprays, demonstrating its potential for better patient outcomes [6] Company Strategy and Product Pipeline - The company has a diverse product pipeline in the respiratory and critical care sectors, including multiple high-potential products aimed at addressing various respiratory conditions [8][11] - The successful launch of Ryaltris® is expected to enhance the company's market position in the allergic rhinitis segment and contribute to overall revenue growth [7][8] - The company is committed to ongoing innovation and development of new therapies, with a focus on unmet clinical needs in respiratory diseases [11]

Core Viewpoint - The approval of Ryaltris (GSP301NS) by the National Medical Products Administration marks a significant milestone for the company, introducing a new treatment option for allergic rhinitis in China and leading the way into a new era of combination therapies in the market [1][11]. Market Opportunity - Allergic rhinitis is a chronic condition affecting approximately 10% to 20% of the global population, with China having a notably high prevalence rate of about 17.6%, translating to nearly 250 million affected individuals [2][5]. - The market for allergic rhinitis medications in China is projected to grow from 43.275 billion RMB in 2024 to 50.090 billion RMB in 2028, with a compound annual growth rate (CAGR) of approximately 3.72% [5]. Product Details - Ryaltris is a novel combination nasal spray that combines an antihistamine and a corticosteroid, designed for the symptomatic treatment of moderate to severe seasonal allergic rhinitis in adults and children aged 6 and above, as well as perennial allergic rhinitis in adults and children aged 12 and above [6]. - Clinical data from Phase III trials indicate that Ryaltris outperformed two existing single-agent nasal sprays, demonstrating superior efficacy and safety profiles [6]. Competitive Landscape - The approval of Ryaltris fills a significant gap in the Chinese market, which has been dominated by foreign single-agent nasal sprays, and is expected to enhance the treatment options available for patients suffering from allergic rhinitis [5][6]. - The company has also developed multiple high-potential products in the allergic rhinitis space, including two first-generic products that have already been launched, indicating a strong pipeline and market presence [7]. Strategic Focus - The respiratory and critical care segment is a core strategic area for the company, which has established a comprehensive product portfolio addressing various respiratory conditions [8]. - The company aims to continue its focus on innovation and global expansion, developing a range of products for chronic airway diseases and critical care, thereby solidifying its position in the industry [11].

Core Viewpoint - Huaxi Securities has initiated coverage on Yuan Da Pharmaceutical, highlighting significant upside potential in the company's valuation due to its robust barriers in the nuclear medicine sector and the rollout of innovative drugs [1] Group 1: Financial Projections - The company is projected to achieve total revenues of HKD 12.27 billion, HKD 13.46 billion, and HKD 14.70 billion for the years 2025, 2026, and 2027 respectively [1] - Corresponding net profits for the parent company are expected to be HKD 2.01 billion, HKD 2.25 billion, and HKD 2.56 billion for the same years, with EPS estimates of HKD 0.57, HKD 0.63, and HKD 0.72 [1] Group 2: Product Development and Market Potential - The company has successfully completed Phase II clinical trials for its globally first drug STC3141, showing significant improvement in SOFA scores in the high-dose group compared to the baseline [1] - STC3141 targets the core of immune dysregulation in sepsis through an innovative mechanism, potentially filling a 40-year gap in targeted drug options and opening a market worth over HKD 10 billion [1] - The company is advised to monitor the subsequent Phase III clinical data and global registration plans for STC3141 [1] Group 3: Business Stability and Growth - The company maintains a solid foundation with over 260 medical insurance products, with core respiratory products like Cheno expected to drive nearly 27% growth in 2024 [2] - The revenue share from innovative and barrier products has rapidly increased to 51% in the first half of 2025, up from 36.1% in the same period last year, indicating significant transformation [2] - The company is positioned for a value reassessment cycle, supported by the growth of nuclear medicine, the launch of innovative drugs, and stable traditional business [2]

Core Viewpoint - Huaxi Securities has initiated coverage on Yuan Da Pharmaceutical (00512) with an "Accumulate" rating, highlighting significant upside potential in the company's valuation due to its robust barriers in the nuclear medicine sector and the rollout of innovative drugs [1] Group 1: Financial Projections - The company is projected to achieve total revenues of HKD 12.27 billion, HKD 13.46 billion, and HKD 14.70 billion for the years 2025, 2026, and 2027 respectively [1] - Corresponding net profits for the parent company are expected to be HKD 2.01 billion, HKD 2.25 billion, and HKD 2.56 billion for the same years, with EPS estimates of HKD 0.57, HKD 0.63, and HKD 0.72 [1] Group 2: Product Development and Market Potential - The company has successfully completed Phase II clinical trials for its globally pioneering drug STC3141, showing significant improvement in SOFA scores in the high-dose group compared to the baseline, with a p-value of less than 0.05 [1] - STC3141 targets the core of immune dysregulation in sepsis through an innovative mechanism, potentially filling a 40-year gap in targeted drug therapies, and is expected to open a market worth over HKD 10 billion [1] - The company has a solid foundation with over 260 medical insurance products, and core respiratory products like Cheno are projected to drive nearly 27% growth in 2024 [2] Group 3: Business Transformation and Growth - The revenue share from innovative and barrier products has rapidly increased to 51% in the first half of 2025, up from 36.1% in the same period last year, indicating significant transformation [2] - Star products such as Yigan Tai®, Enzhuo Run®/Enming Run® (asthma inhalation preparations), LavaTM, and Nengqilang® are accelerating in market release, creating a favorable dynamic of stable growth in traditional business and explosive growth in innovative business [2] - The company is expected to enter a value reassessment cycle as nuclear medicine expands, innovative drugs are launched, and traditional business remains stable [2]

Core Insights - The recent clinical study of Yuan Da Pharmaceutical's product, Chen Nuo (Eucalyptus Oil Enteric Capsules), has been recognized by an international journal, marking a significant milestone in its evidence-based medical validation [1][3][10] - The study demonstrated the safety and efficacy of Chen Nuo in treating chronic rhinosinusitis over an 8-week period, reinforcing the company's research capabilities in the respiratory field [3][5][7] Product and Market Position - Chen Nuo is a core product in Yuan Da Pharmaceutical's respiratory and critical care segment, recognized for its mucolytic properties and has been included in China's national medical insurance and essential drug lists since 2017 and 2018 respectively [4][10] - The clinical trial involved over 300 patients across 13 hospitals, comparing the efficacy of Chen Nuo combined with Budesonide nasal spray against Budesonide alone [4][5] Clinical Study Results - Results indicated that the combination therapy group showed a statistically significant improvement in symptom control rates compared to the control group, particularly in nasal congestion and discharge by the 8th week [5][7] - The study also highlighted the advantages of the combination therapy for chronic rhinosinusitis patients with a history of smoking, showing greater improvement in CT Lund-Mackay scores [5][7] Future Market Potential - The research supports the inclusion of Chen Nuo in standardized treatment pathways for chronic rhinosinusitis, potentially benefiting over 100 million patients in China, especially those with smoking histories [7] - The global respiratory drug market is projected to reach approximately $99.9 billion by 2024, with the Chinese market expected to grow from about $11.6 billion to $13.8 billion by 2028, at a compound annual growth rate of 4.5% [7][8] Product Pipeline and Innovation - Yuan Da Pharmaceutical has developed a comprehensive product portfolio in the respiratory and critical care sectors, including treatments for various respiratory diseases and conditions [11][12] - The company is advancing multiple innovative products, including Ryaltris for allergic rhinitis and STC3141 for sepsis, which are expected to enhance its competitive position in the market [12][16] Strategic Development - The company emphasizes innovation and advanced technology in its R&D strategy, aiming to establish a full-cycle management product cluster for chronic respiratory diseases and critical care [16]

Core Viewpoint - The recent clinical study of Yuan Da Pharmaceutical's Cheno® (Eucalyptol enteric-coated capsules) for chronic rhinosinusitis has been recognized by an international journal, marking a significant milestone in the product's evidence-based medical validation [1][3]. Product and Clinical Research - Cheno® is a core product in Yuan Da Pharmaceutical's respiratory and critical care segment, recognized for its mucolytic properties and has been included in China's national medical insurance and essential drug lists since 2017 and 2018 respectively [4][5]. - The study involved over 300 chronic rhinosinusitis patients across 13 top-tier hospitals in China, comparing the efficacy and safety of Cheno® combined with Budesonide nasal spray against Budesonide alone [4][5]. Study Results - The results indicated that the combination therapy group showed a statistically significant improvement in major symptom scores and symptom control rates compared to the control group [5]. - Notably, the combination therapy was particularly effective for chronic rhinosinusitis patients with a smoking history, demonstrating superior improvement in CT Lund-Mackay scores [5][6]. - The safety profile of Cheno® was confirmed, with no significant difference in adverse event rates compared to the control group [5][6]. Market Position and Future Potential - The study reinforces Cheno®'s clinical value and supports its inclusion in standardized treatment pathways for chronic rhinosinusitis, potentially benefiting over 100 million patients in China, especially those with a smoking history [6]. - Cheno® is not only indicated for chronic rhinosinusitis but also has applications in various respiratory diseases, indicating a vast market potential [6]. - The global respiratory drug market is projected to reach approximately $99.9 billion by 2024, with the Chinese market expected to grow from $11.6 billion to $13.8 billion by 2028 at a CAGR of 4.5% [6]. Product Pipeline and Innovation - Yuan Da Pharmaceutical has developed a comprehensive product portfolio in the respiratory and critical care sectors, including innovative formulations for asthma and allergic rhinitis, with several products recently entering the national medical insurance list [11][12]. - The company is also advancing its pipeline with promising candidates for sepsis and other critical conditions, enhancing its competitive edge in the market [12][13]. - The strategic focus on innovation and global expansion aims to solidify the company's position in the respiratory disease management sector [16].

Core Viewpoint - Recent clinical research on Yuan Da Pharmaceutical's product Qino (Eucalyptol enteric-coated capsules) for chronic rhinosinusitis has been recognized by an international journal, marking a significant milestone in evidence-based medicine for the product [1][3]. Group 1: Clinical Research and Product Validation - The study, led by Professor Wang Dehui from Fudan University, involved over 300 patients across 13 major hospitals in China and demonstrated the safety and efficacy of Qino when used in conjunction with Budesonide nasal spray [4][5]. - Results indicated that the combination therapy significantly improved symptom scores and control rates compared to the control group, particularly in patients with a history of smoking [5][7]. - This research fills a gap in evidence for long-term combination therapy, supporting Qino's inclusion in standardized treatment pathways for chronic rhinosinusitis [7]. Group 2: Market Position and Growth Potential - Qino is a core product in Yuan Da Pharmaceutical's respiratory and critical care segment, recognized for its clinical significance and market leadership in cough and phlegm relief [4][10]. - The global respiratory drug market is projected to reach approximately $99.9 billion by 2024, with the Chinese market expected to grow from about $11.6 billion to $13.8 billion by 2028, at a compound annual growth rate of 4.5% [7]. - Yuan Da Pharmaceutical has a diverse product pipeline addressing various respiratory conditions, including asthma and chronic obstructive pulmonary disease, enhancing its competitive edge in the market [11][12]. Group 3: Future Development and Strategic Focus - The company emphasizes innovation and advanced technology in product development, aiming to create a comprehensive management product cluster for chronic respiratory diseases and critical care [16]. - Yuan Da Pharmaceutical's strategic focus on both domestic and international markets is expected to strengthen its industry position and drive valuation growth [15].

Core Viewpoint - The company is strategically focusing on the nuclear medicine sector, with a comprehensive and diversified product layout, aiming to capture market share in a rapidly growing market projected to reach $21.9 billion by 2029, with a CAGR of 16.4% from 2024 to 2029 [1] Group 1: Nuclear Medicine Sector - The company has established a global full industry chain layout in targeted anti-tumor drugs, with its core product, Yttrium-90 microsphere injection (Egan Tai), being the first nuclear medicine for liver cancer treatment in China, having treated nearly 2,000 patients [1] - The company’s domestic sales revenue for the core product is expected to reach HKD 500 million in 2024, representing a year-on-year increase of 140% [1] - The company has formed a pipeline of 12 clinical registrations through acquisitions and independent research, covering various cancers, with 4 domestic pipelines entering clinical phase III [1] Group 2: Respiratory and Critical Care Business - The revenue from the respiratory and critical care segment increased by 26.9% year-on-year [2] - The company’s innovative sepsis drug STC3141 has shown significant efficacy in clinical trials, with a notable reduction in SOFA scores in the treatment group compared to the placebo group, indicating a potential breakthrough in sepsis treatment [2] - The successful launch of STC3141 is expected to enhance the company’s international competitiveness in critical care treatment [2] Group 3: Traditional Pharmaceutical Sector - The traditional pharmaceutical sector remains solid, with a focus on nuclear medicine, cardiovascular precision intervention, pharmaceutical technology, and biotechnology [2] - In the first half of 2025, the company achieved revenue of HKD 6.11 billion, a year-on-year increase of 1.0%, and a net profit of HKD 1.17 billion, a year-on-year decrease of 26.1% [2] - The pharmaceutical technology segment accounted for 63.0% of total revenue, with key products in various therapeutic areas [2] Group 4: Valuation and Growth Potential - The company is positioned as a domestic leader in nuclear medicine and high-end formulations, with a comprehensive pipeline covering multiple cancer indications [3] - The company is valued at a PE of 17 times for 2025, which is lower than the average PE of comparable companies at 22 times [3] - Projected net profits for the company are expected to reach HKD 2.021 billion, HKD 2.347 billion, and HKD 2.756 billion for 2025, 2026, and 2027 respectively, with corresponding PEs of 17, 14, and 12 times [3]

Investment Rating - The report initiates coverage with a "Buy" rating for Grand Pharmaceutical (0512.HK) [7]. Core Views - Grand Pharmaceutical is positioned as a leading player in the nuclear medicine and high-end formulation sectors, with a comprehensive pipeline and a focus on innovative drug development. The company is expected to achieve significant growth driven by its nuclear medicine products and a robust traditional pharmaceutical segment [6][7]. Summary by Sections 1. Innovation Leading Nuclear Medicine Development - The company has established a comprehensive industrial chain covering research, production, and commercialization in nuclear medicine and precision intervention fields [11]. - Grand Pharmaceutical's core product, Yttrium-90 microsphere injection (易甘泰®), is the first approved nuclear medicine for liver cancer treatment in China, with a significant market presence [11][14]. - The nuclear medicine segment is expected to grow rapidly, with projected sales of 500 million HKD in 2024, reflecting a year-on-year increase of 140% [6]. 2. Nuclear Medicine Pipeline Entering Harvest Phase - The global nuclear medicine market is projected to grow at a compound annual growth rate (CAGR) of 16.4%, reaching 21.9 billion USD by 2029 [6][25]. - The company has a rich pipeline with 12 clinical candidates, including four in Phase III trials, targeting various cancers such as prostate and kidney cancer [6][11]. - The report highlights the potential of STC3141, a novel treatment for sepsis, which has shown significant efficacy in clinical trials [6][7]. 3. Financial Performance and Forecast - The company achieved a revenue of 61.1 billion HKD in the first half of 2025, with a year-on-year growth of 1.0%, while the net profit was 11.7 billion HKD, down 26.1% year-on-year [14][18]. - The report forecasts net profits of 20.21 billion HKD, 23.47 billion HKD, and 27.56 billion HKD for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (P/E) ratios of 17, 14, and 12 [7][14]. - The traditional pharmaceutical segment remains stable, contributing 63% of total revenue, with key products in respiratory and critical care showing solid growth [18][20]. 4. Competitive Positioning - Grand Pharmaceutical's valuation is attractive, with a 2025 P/E ratio of 17, lower than the average of comparable companies at 22 [7]. - The company has established a global sales network covering over 50 countries, demonstrating its international competitiveness [22][24]. - The report emphasizes the strategic acquisitions and partnerships that have strengthened the company's market position and product offerings [11][22].