Company News On November 18, Chengdu Qualcomm, a subsidiary of China Tongpo Holdings, announced that it has signed a technology license agreement with ITM Isoopen Technologien Munchen, a German biotechnology and radiopharmaceuticals group, to implement the 68GE-68Ga generator and carrier-free (n.c.a) Lutetium-177 (EndolucinBeta) production in China, and joined ITM's global supply network as ITM's OEM supplier, becoming ITM's fourth OEM supplier partners. Comment 68Ga and carrier-free (n.c.a) 177Lu is currently the most promising and market-active integrated nuclide for targeted radiological diagnosis and treatment. It can be used to prepare radiopharmaceuticals with tumor targeting functions for diagnosis and treatment. 1) 68Ga: Thanks to its excellent nuclide properties, preparation of a 68Ge-68Ga germanium gallium generator, and simple chemical labeling, 68Ga is more and more widely used, and its application in PET imaging is second only to F18. 2) 177Lu is a radionuclide ideal for treatment. In recent years, it has been widely used in targeted nuclide therapy research and clinical application in developed countries in Europe and the US, with good results. The company predicts that by 2030, the treatment demand for 177 Lu labeled drugs in China alone for prostate cancer, neuroendocrine tumors, and bone metastatic cancer will reach 20,000 Ci. This cooperation will enable large-scale production of currently the world's only carrier-free 177Lu and the world's leading GMP-grade 68Ge-68Ga generator in mainland China, effectively ensuring future diagnostic and treatment needs of cancer patients in China, as well as a reduction in manufacturing and transportation costs. Currently, the 68Ge-68Ga generator and the carrier-free 177Lu in the Chinese market are all imported. Due to the shortage of international supply, long product order cycles, and high prices, limit promotion and application in clinical departments in China. This cooperation promotes the development and promotion of the company's product line in the field of nuclear medicine. The valuation suggests that we maintain net profit of RMB 1.21 and RMB 1.43 per share in 2019/2020, corresponding to year-on-year increases of 20.1% and 18.1%, respectively. The current stock price corresponds to the price-earnings ratio of 15.2/12.9 times in 2019/2020. Maintaining an outperforming industry rating and a target price of HK$24.20, corresponding to 17.9 times the 2019 price-earnings ratio and 15.1 times the 2020 price-earnings ratio, there is 19% upside from the current stock price. Competition in the risky radiopharmaceuticals market has intensified; there is a shortage of raw materials; product development progress has been delayed; and stock liquidity is low.