A small molecule innovative pharmaceutical company with a global layout. The company was founded in 2000 and has been deeply involved in the field of small molecule oncology for more than 20 years. It has 3 commercialized varieties and multiple post-clinical drugs, and has accumulated rich commercial operation experience, and has joined forces with MNC to explore the international market. Changjiang Hutchison Industrial is the largest shareholder, has a stable management team structure and a deep R&D background. The company operated steadily, with a revenue CAGR of 23.1% in 2017-2023, and achieved profit of $0.101 billion for the first time in 2023.

Innovative products are being commercialized, and overseas is being realized. 1) Fruquintinib: Focus on gastrointestinal tumors and promote globalization.

In the last 1-2 years, fruquintinib's colorectal cancer indications have been marketed in the three major markets of the US, Europe, and Japan, and are being rapidly distributed at home and abroad.

Fruquintinib has the potential to be a “pan-cancer type” and is expected to expand into endometrial cancer and kidney cancer in the future; 2) Sevotinib: Targeting the broad market for EGFR-TKI resistance. As the first MET inhibitor in China, sevolitinib was conditionally approved for marketing in China in 2021, and included in national health insurance in 2023. Furthermore, for NSCLC (non-small cell lung cancer) EGFR-TKI resistance: domestic second- and third-line EGFR-TKI refractory/MET+ indications are expected to be submitted for NDA next year; teaming up with AstraZeneca to lay out second- and third-line ositinib refractory/MET+ indications, it is expected that an NDA will be submitted in the US by the end of this year.

Comprehensive layout of self-prevention & hematoma, full potential for innovative targets. 1) Solepinib: A highly differentiated oral Syk inhibitor, immune thrombocytopenia (ITP) has submitted an NDA and is expected to become the first Syk inhibitor in China; 2) surufatinib: advanced pancreatic neuroendocrine tumors have been marketed domestically in 2020. At the same time, the company is actively deploying its combined PD-1 single anti-pancreatic cancer; 3) Hematoma field: HMPL306 is an IDH1/2 dual inhibitor, the fastest treatment in the world for AML (acute myeloid leukemia); tazze He is introducing products , the first EZH2 inhibitor, lays out follicular lymphoma.

We forecast the company's revenue for 2024-2026 to be US$6.80, 8.44 and US$1.0 billion, respectively. According to comparable companies, we gave the company 4.4 times PS in 2025, and the corresponding target price was HK$33.24, giving it a “buy” rating for the first time.

Risk Alerts

There is a risk that innovative drug development progress will fall short of expectations, product competition will intensify or sales will fall short of expectations, and the company's medium- to long-term profitability will decline.