Huafu Securities: First Coverage of SUNSHINE PHARMA (06887) with a "Buy" rating, rich innovative pipeline reserves and strong growth potential.

Huafu Securities issued a research report stating that SUNSHINE PHARMA (06887), as a leading company in the influenza field, has a stable basic portfolio, rich innovative pipeline reserves, strong growth prospects, and focuses on three major sectors: anti-infection, chronic diseases, and tumors. In the anti-infection field, it maintains a leading position in the pipeline of influenza, Hepatitis C, and Hepatitis B. It has given a "buy" rating for the first coverage. The main points of Huafu Securities are as follows: Anti-infection: Leading company in the influenza field, advancing simultaneously in the pipelines of Hepatitis C and Hepatitis B Influenza: Solid leading position. The company's oseltamivir has the highest market share in China and has the largest production base in the world with sufficient supply capacity. Hepatitis C: Pan-genotypic therapy approved for market. Sofosbuvir and Acolabuvir have been approved by NMPA for market in February 2025 and March 2025 respectively. Hepatitis B: Tenofovir alafenamide progressing the fastest, small nucleic acid pipeline entering clinical trials. Tenofovir alafenamide fumarate is the domestically developed shell inhibitor with the fastest research progress and the only product in China entering Phase III clinical trials. Additionally, the siRNA therapy (HECN30227) for Hepatitis B entered clinical trials in October 25. Chronic diseases: Potential BIC for Isotretinoin and Insulin awaiting FDA approval Idiopathic pulmonary fibrosis: Isotretinoin is a potential BIC, entering the $40 billion global market. Isotretinoin has completed Phase I in China and the United States, with impressive Phase II data in China: compared to the placebo, the Isotretinoin 200mg group showed a 96% delay in decline from baseline, much better than the 47% in the Pyridofinon group. It has the potential for BIC and is currently in Phase III clinical trials. Insulin abroad: Glargin insulin to be approved by the FDA in the United States soon, expected to contribute to performance. Glargin insulin: The company is expected to obtain BLA approval in the first half of 2026. Tentative insulin: Pre-IND application has been submitted, and the company plans to submit a BLA application to the FDA by the end of 2025 and expects to obtain BLA approval by the end of 2026. Tumors: BCL2 Klectophoten