Yuanta Securities: Maintains a "buy" rating on Shanghai Fosun Pharmaceutical (02196), and grants the exclusive rights to ocrelizumab in the Japanese region.

Yuanta Securities released a research report stating that Shanghai Fosun Pharmaceutical (02196) is expected to achieve net profits of 3.32 billion yuan, 4.68 billion yuan, and 4.77 billion yuan in 2025, 2026, and 2027 respectively, with year-on-year growth rates of +19.9%, +40.8%, and +2.1%. The corresponding EPS are 1.2 yuan, 1.8 yuan, and 1.8 yuan, with H shares PE ratios of 15X/11X/11X. The H shares valuation is relatively low, and the long-term development outlook is positive, maintaining a "buy" investment rating. The main points of view of Yuanta Securities are as follows: Event The company's holding subsidiary HENLIUS has granted the rights to develop, produce, and commercialize the Sintilimab injection for oncology indications in Japan to Japanese pharmaceutical company Eisai (listed on the Tokyo Stock Exchange, code 4523.T). According to the agreement, Eisai shall pay HENLIUS a non-refundable upfront payment and regulatory milestone payments totaling up to 155.01 million US dollars, with an upfront payment of 75 million US dollars and up to 80.01 million US dollars in regulatory milestone payments. In addition, based on the net sales in Japan of the licensed product, the company may receive up to 233.33 million US dollars in sales milestone payments and a double-digit percentage of sales royalties. Strong competitiveness of Sintilimab Sintilimab is a PD-1 monoclonal antibody independently developed by the company, which was launched in China in March 2022. It currently covers multiple indications including sqNSCLC, ES-SCLC, nsqNSCLC, and ESCC. The revenue of this product reached 1.31 billion yuan in 2024, with a yoy growth of 17.2%. In terms of international expansion, Sintilimab was approved for marketing in the EU in February 2025, becoming the world's first PD-1 monoclonal antibody approved for first-line treatment of SCLC in the EU. It has also been approved for marketing in the UK, Indonesia, Cambodia, Thailand, Malaysia, Singapore, India, and other countries/regions. The authorization by Eisai in the Japanese market will further expand the overseas market and enhance the accessibility and recognition of the company's products in the international market. Continued exploration of new markets and indications The bridging trial of Sintilimab combined with chemotherapy for first-line treatment of ES-SCLC in the US is progressing smoothly. The bridging trial in Japan is also progressing steadily and will submit a marketing application to Eisai during the 2026 fiscal year. The company is actively developing new indications, with the drug's registration application for neoadjuvant/adjuvant therapy for gastric cancer being accepted by the National Medical Products Administration of China in December 2025 and included in the priority review program. In addition, the company is conducting clinical trials for indications such as head and neck squamous cell carcinoma, colorectal cancer, liver cancer, and advanced solid tumors. With the approval of new markets and new indications, Sintilimab will maintain rapid growth. Risk warning: New product research and development progress and sales below expectations, drug central procurement and national price negotiation reduce more than expected, risk of impairment of goodwill.