Core Viewpoint - Daiwa maintains a "Buy" rating for China Biologic Products (01177) and raises the target price from HKD 5.6 to HKD 10, reflecting an upward revision in revenue and earnings forecasts due to improved sales of innovative drugs and expected dividend income from Sinovac Biotech [1] Group 1: Financial Projections - Revenue forecasts for China Biologic Products for 2025 to 2027 have been adjusted upward by 1% to 6% [1] - Earnings per share estimates have been increased by 56% to 106% [1] Group 2: Product Development - The sales of innovative drugs are progressing as expected, with a 27% year-on-year increase in revenue for innovative drug products, reaching RMB 7.8 billion in the first half of the year [1] - The company anticipates launching a total of 21, 26, and over 35 innovative products in 2025, 2026, and 2027, respectively [1] Group 3: New Drug Launches - The report highlights three new drugs expected to be launched by 2027: TQC3721 (PDE3/4), LM-302 (Claudin18.2 ADC), and TQC2731 (TSLP mAb) [1] - The authorization deal for TQC3721 (PDE3/4 inhibitor) is expected to be completed within 2025, as the company is revising terms with potential partners [1]

Core Viewpoint - Daiwa's research report indicates that China National Pharmaceutical Group's innovative drug sales are progressing as expected, with an upward revision of the three-year product launch plan, projecting a total of 21, 26, and over 35 innovative products by 2025, 2026, and 2027 respectively [1] Group 1: Product Launch and Projections - The main change for China National Pharmaceutical Group is the addition of three new drugs in 2027: TQC3721 (PDE3/4), LM-302 (Claudin 18.2 ADC), and TQC2731 (TSLP mAb) [1] - The company anticipates that the licensing deal for TQC3721 (PDE3/4 inhibitor) will be completed within 2025, as it is currently revising terms with potential partners [1] Group 2: Financial Outlook - Daiwa maintains a "Buy" rating for China National Pharmaceutical Group, raising the target price from HKD 5.6 to HKD 10 based on discounted cash flow [1] - Revenue forecasts for the company from 2025 to 2027 have been increased by 1% to 6%, with earnings per share estimates raised by 56% to 106%, reflecting the upward revision in innovative drug sales and other income projections due to expected continued dividend income from Sinovac Biotech [1]