Zhitong Finance and Economics APP learned that Huachuang Securities released a research report stating that it maintains a "recommended" rating for Hansoh Pharma (03692). According to the adaptation status of various products and the adjustment of profit forecasts before listing, the company's revenue from 2024 to 2026 is expected to be 12.155, 12.439, and 14.470 billion yuan respectively; the net income attributable to the parent is 4.259, 3.945, and 4.669 billion yuan, with a target price of 25.44 Hong Kong dollars. The company has basically completed the transformation into an innovative-driven enterprise, with the revenue share of innovative drugs reaching a new high. The R&D pipeline has multiple key domestic varieties leading in progress, and the international potential of ADC is emerging.

Events: The company achieved a total revenue of 6.506 billion yuan (+44.2%), net income of 2.726 billion yuan (+111.5%), and EPS of 0.46 yuan (+111.4%). Sales revenue of innovative drugs and partnership products amounted to 5.032 billion yuan (+80.6%), accounting for 77.4% of total revenue, up from 61.8% in the first half of 2023.

Huachuang Securities' main views are as follows:

Revenue from innovative drugs saw a significant year-on-year increase, with efforts across multiple treatment areas.

In the first half of the year, sales revenue from innovative drugs and partnership products reached 5.032 billion yuan (+80.6%), accounting for 77.4% of total revenue, a record high. In the first half of 2024, the oncology sector achieved revenue of 4.475 billion yuan (+75.15%), accounting for 68.8% of total revenue (+12.2pp); the central nervous system sector achieved revenue of 0.733 billion yuan (+4.57%), accounting for 11.3% of total revenue (-4.2pp); the anti-infection sector achieved revenue of 0.701 billion yuan (+16.64%), accounting for 10.8% of total revenue (-2.5pp); and the metabolism and other sectors achieved revenue of 0.597 billion yuan (-8.72%), accounting for 9.1% of total revenue (-5.5pp).

Research and development progress smoothly, with several key domestic varieties leading in progress in the pipeline.

Selinexor was approved for the third-line treatment of DLBCL, and the NDAs for the third and fourth indications of Amivantinib have been accepted by the NMPA, intended for postoperative adjuvant therapy for EGFRmt NSCLC and unresectable locally advanced EGFRmt NSCLC after non-progressive definitive platinum-based chemoradiotherapy. HS-20094 (GLP-1R/GIPR) has published Phase IIa data for diabetes, with good safety and tolerability. Inolizumab (CD19) IgG4-RD Phase III study has reached the primary endpoint, with global and multicenter clinical trials for gMG, including in China, in progress.

The pipeline ADC products have the potential for internationalization.

HS-20093 (B7H3ADC) has obtained FDA breakthrough therapy designation. The ADC is being evaluated for the treatment of ES-SCLC patients with platinum chemotherapy progression or after; in addition, GSK has completed overseas Phase I clinical registration of two ADCs, HS-20093 and HS-20089 (B7H4ADC). The new solid tumor ADC HS-20124 has been approved for clinical trials. Furthermore, the company has expanded its cooperation with Pumis on the EGFR/c-Met dual antibody HS-20017, with Hansoh Pharma obtaining exclusive licensing rights to develop, manufacture, commercialize HS-20117 for dual antibody ADCs globally, and has the right to further sublicense.

Risk warning: Clinical progress may not meet expectations, commercial performance may not meet expectations, and the competitive landscape may change.