Huayuan Securities Maintains 'Buy' Rating on Hansoh Pharmaceutical (03692.HK) as Innovation Pipeline Enters Commercialization Phase

According to the Zhitong Finance APP, Huayuan Securities issued a research report stating that Hansoh Pharma (03692) is expected to achieve net profits attributable to shareholders of RMB 6.41 billion, RMB 7.26 billion, and RMB 8.58 billion from 2026 to 2028, with year-on-year growth rates of 15.4%, 13.2%, and 18.3%, respectively, corresponding to P/E ratios of 33x, 29x, and 25x. The company's performance is impressive, with its innovative pipeline gradually entering the realization phase, maintaining a "Buy" rating.

The main viewpoints of Huayuan Securities are as follows:

Event

Hansoh Pharma Releases 2025 Annual Report: Total Revenue of RMB 15.028 Billion, Up 22.6% Year-on-Year; Revenue from Innovative Drugs and Collaborative Products at RMB 12.354 Billion, Up 30.4%, Accounting for 82.2% of Total Revenue; Profit at RMB 5.555 Billion, Up 27.1%.

Innovative products become the core driving factor for performance growth

Hansoh Pharma's Total Revenue in 2025 Reached 15.028 Billion Yuan, with Innovative Drug and Collaboration Product Sales Revenue at 12.354 Billion Yuan, a Year-on-Year Increase of 30.4%, Accounting for 82.2% of Total Revenue; Innovative Products Have Become the Core Driver of Performance Growth. By Field: 1) Oncology Revenue was 9.974 Billion Yuan, Accounting for 66.4% of Total Revenue, Remaining the Core Revenue Area; 2) Central Nervous System Field Revenue was 1.310 Billion Yuan, Accounting for 8.7%; 3) Anti-Infective Field Revenue was 1.586 Billion Yuan, Accounting for 10.6%; 4) Metabolic and Other Disease Areas Revenue was 2.158 Billion Yuan, Accounting for 14.3%.

Solid Foundation from Core Listed Products, Promising Future with Active Clinical Pipeline

Seven innovative drugs generated revenue in China, with 11 indications included in the National Reimbursement Drug List (NRDL). Commercialized products: 1) Ameitinib: Three new indications approved for marketing (two already included in the NRDL), receiving Tier 1/first-line recommendations from eight national treatment guidelines; 2) Flumatinib: Recommended by two national guidelines; 3) Inebilizumab: Two new indications approved for marketing. Clinical pipeline: 1) HS-20093: Phase 3 clinical trials for small cell lung cancer and osteosarcoma, proof-of-concept (PoC) stage for solid tumors such as head and neck cancer and castration-resistant prostate cancer, designated as a breakthrough therapy by the NMPA for three indications; 2) HS-20089: Phase 3 clinical trial for ovarian cancer, designated as a breakthrough therapy by the NMPA; 3) HS-20094: Phase 3 clinical trials for type 2 diabetes, obesity, or overweight. Several other innovative products have advanced to the clinical stage for the first time.

BD Transactions Expected to Provide Regularized Profits

Over the past three years, the company has completed 5+ out-licensing deals, with assets covering all stages from preclinical to late-stage development, and the total value of these deals reaching over $9 billion, expected to provide regular profits. 1) HS-20094: Licensed to Regeneron in June 2025, with upfront and milestone payments totaling $2.01 billion; 2) HS-20110: Licensed to Roche in October 2025, with cumulative upfront and milestone payments exceeding $1.53 billion; 3) Aumolertinib: Licensed to Glenmark in December 2025, with cumulative upfront and milestone payments exceeding $1 billion.

Risk Warning:Risks of clinical development failure, deteriorating competitive landscape, and sales underperformance, etc.