FOSUN INTL Securities: First giving AIM VACCINE (06660) a "buy" rating with a target price of HK$11.0.

FOSUN INTL Securities has released a research report, covering AIM VACCINE (06660) for the first time, and pointed out that due to the company's strong product pipeline, technological leadership, and international growth potential, the stock is given a "buy" rating with a target price of 11.0 Hong Kong dollars in 12 months. The report states that as a leading full-industry chain vaccine company in China, AIM VACCINE has strong research and development, manufacturing, and commercialization capabilities. The company already has 5 advanced human vaccine technology platforms that have been validated, 4 wholly-owned production enterprises, and 8 commercialized products. Its 22 vaccine candidate products cover 13 disease areas, including globally leading vaccine varieties. In addition, the company conducts sales operations in all 31 provinces in China, and actively expands its international market by exporting to countries such as Pakistan, Tajikistan, Egypt, and Cte d'Ivoire. It is expected that by 2025, the company's core products (hepatitis B vaccine and rabies vaccine) will tend to stabilize, while iterative blockbuster vaccines, such as serum-free rabies vaccine, PCV13, MCV4, mRNA respiratory syncytial virus vaccine, and mRNA herpes zoster vaccine, will drive transformative growth (with an expected compound annual growth rate of 47% from 2024 to 2027, achieving break-even in 2025 and net profit reaching 1.52 billion yuan in 2027). Specifically, the report believes that the Chinese vaccine market is evolving in line with global trends, with the market being dominated by high-value products and leading companies. With its differentiation advantage, AIM VACCINE is expected to take a leading position in the domestic market and achieve scalable expansion in the international market. In addition, AIM VACCINE's comprehensive and iterative product portfolio will enhance its market share, pricing power, and profitability, further supporting the company's long-term growth. The company also has advanced research and manufacturing capabilities, as well as a wide distribution network and global influence. FOSUN INTL Securities added that despite the market's focus on concerns about competitive pressures and pricing challenges in the Chinese vaccine industry, they have a more optimistic view. They believe that AIM VACCINE's diversified product portfolio, technological advantages, and global expansion strategy create a highly attractive investment opportunity for investors. With a series of high-value products set to be launched and profitability expected to rebound from 2025, the company is expected to achieve strong growth and may undergo a value reevaluation.