HANSOH PHARMA(HK:03692)2025-08-19 05:42Summary of Hansoh Pharma Earnings Review Company Overview - Company: Hansoh Pharma (3692.HK) - Industry: Pharmaceuticals, specifically focusing on innovative drugs and collaborations Key Financial Highlights - 1H Sales: Rmb7.4 billion, representing a 14.3% year-over-year increase compared to the expected Rmb6.5 billion [1] - Product Sales Growth: Grew by 13.2% year-over-year, driven by innovative drugs, particularly Ameile, which saw a 21% year-over-year increase [1] - Collaboration Income: Exceeded expectations with Rmb853 million from Merck GLP-1 deal and Rmb804 million milestone payment from GSK [1] - Earnings: Rmb3.1 billion, up 15% year-over-year, surpassing the expected Rmb2.1 billion [1] - Core Earnings Growth: Increased by 13% year-over-year, slower than product sales due to a 20% year-over-year rise in R&D expenses [1] Future Guidance - Sales Guidance for 2025: Management has raised the product sales growth forecast to high-double-digit growth, up from previous double-digit growth expectations [1] - Ameile Sales Target: Expected to achieve over Rmb8 billion by 2030, with a target of Rmb10 billion+ in 2025, driven by new indications and extended product life cycle strategies [2] Pipeline Developments - Key Pipeline Assets: - HS-20093 (B7H3 ADC): Two phase 3 trials initiated in China for SCLC and osteosarcoma, with plans for pivotal stage advancement in 2025 [3] - HS-20089 (B7H4 ADC): Pivotal study for ovarian cancer initiated in China, with global phase 3 trials expected by 2026 [3] - HS-10535 (oral GLP-1): Global phase 1 studies to start by Merck in 2025 [3] - HS-20094 (GLP-1/GIP): Moving to phase 3 stage by Regeneron in 2026 [3] Strategic Focus - Collaboration Strategy: Continues to be a key global expansion strategy, with efforts to self-run global phase 1 studies for selected oncology and immunology assets [8] - Earnings Estimates Revision: Earnings estimates for 2025, 2026, and 2027 have been revised up by 10.4%, 8.9%, and 6.3% respectively, reflecting higher collaboration income and innovative drug sales [8] Valuation and Risks - Price Target: Increased to HK$39.93 from HK$34.83, based on a sum-of-the-parts (SOTP) valuation [9] - Risks Identified: - Generics sales may fall below expectations post VBP - Slower ramp-up of novel drugs - R&D risks in the innovative drug pipeline - Below-expected collaboration income from global expansion [10] Conclusion Hansoh Pharma shows strong financial performance in the first half of the year, with positive sales guidance and a robust pipeline of innovative drugs. The company's strategic focus on collaborations and self-running studies positions it well for future growth, despite identified risks in the generics market and R&D.