Zhitong Financial APP learned that Zhongtai International released a research report that adjusted the rating of Federal Pharmaceutical (03933) from "buy" to "overweight". As the sales of insulin and animal protection business in the second half of 2023 are expected to be better than earlier forecasts, the revenue forecast for 2023-25e will be raised by 2.1%, 1.7% and 1.9%, and shareholders' net profit forecast by 0.4%, 1.2% and 0.3%. The target price rose slightly to HK $9.7 from HK $9.68 to reflect an increase in earnings forecasts.

According to the report, the company's management said that the first GLP-1 agonist liraluptide has submitted an application for listing, which is expected to be approved within 2024. In addition, according to the current progress, the company expects that long-acting insulin Degu insulin is expected to be approved for market in 2025. With regard to the recent market concern, the company is currently conducting clinical trials and is expected to approve diabetes and weight management indications in 2025 and 2027, respectively. Due to the good effect of reducing blood sugar and weight loss and not easy to cause side effects such as hypoglycemia, domestic sales of GLP-1 agonists began to increase rapidly in recent years. At present, the market of GLP-1 agonists in China is dominated by imported drugs, and only East China Medicine (000963.SZ) has just been approved in July 2023, so the Federal Pharmaceutical has a strong advantage if it is approved. The company is one of the companies listed in Hong Kong that have been approved for the clinical trial of Simiguelu. because of its excellent effect in reducing blood sugar and weight loss, it will be concerned by funds if the clinical data are good in the future.