Sinolink: Innovation and internationalization driving CSPC PHARMA (01093) "buy" rating.

Sinolink released a research report stating that CSPC PHARMA (01093) is a comprehensive leading pharmaceutical company in China, with business covering formulations (generic drugs + innovative drugs), active pharmaceutical ingredients, and functional foods. It has a solid operational base, a strong research and development foundation, and the effects of innovative transformation are evident, leading in the industry in terms of internationalization and commercialization. The bank estimates that its net profit attributable to shareholders for 2026-2028 will be 7.932/6.328/6.704 billion yuan, corresponding to PEs of 9.08/11.38/10.74 times. The company is given a 15 times PE valuation for 2026, with a target market value of approximately 119 billion yuan (137.9 billion Hong Kong dollars), and a "buy" rating. Sinolink's main points are as follows: Innovative research and development drive a comprehensive upgrade from R&D investment to product listing and BD overseas expansion 1) The company has built a global research and development team and a multi-center research and development ecosystem, forming a differentiated technological barrier based on eight core technology platforms; 2) Innovative pipeline achieves both quantity and quality improvements: the pace of clinical and market application submissions is accelerating, and core varieties will reach key clinical or marketing regulatory milestones; 3) The company has reached multiple deep collaborations with international giants such as AstraZeneca, with a total of 7 external authorizations and a first payment of $1.46 billion by 2025-26Q1, with a potential total transaction amount exceeding $28 billion, demonstrating the high recognition of multinational pharmaceutical companies for the company's research and development capabilities. Oncology: The potential of the EGFRADC flagship product is gradually emerging, with sufficient pipeline reserves. 1) SYS6010 (EGFRADC) is conducting clinical exploration around multiple indications, including 6 key clinical trials covering various indications such as NSCLC with EGFR mutations, esophageal squamous cell carcinoma, HR+/HER2- breast cancer, etc.; 2) Anetuzumab (HER2 dual antibody) and Pucanetuzumab (HER2 dual antibody ADC) are expected to reach approval milestones in 2026; 3) JMT108 (PD-1/IL15) has initiated early clinical exploration for multiple tumor types and treatment regimens in China and the US. Chronic diseases: Long-acting platform empowers the metabolic pipeline, leading in the domestic small nucleic acid layout 1) TG103 (GLP-1) for weight loss indications have entered the BLA phase, while GLP-1 for type 2 diabetes is undergoing Phase III clinical trials; Semaglutide (weekly formulation, GLP-1) for type 2 diabetes has submitted an NDA, with weight-loss indications in Phase III trials. 2) Innovative targets JMT202 (targeting FGFR1c/klotho monoclonal antibody), JMT206 (targeting ACTRIIA/IIB monoclonal antibody), SYS2069 and SYH2082 two GLP1/GIP dual agonists have entered Phase I clinical trials; 3) The small nucleic acid SYH2053 (PCSK9) has progressed to Phase III in February 2026. The remaining pipeline SYH2062 (AGT) focuses on primary hypertension, SYH2068 (Lp(a)) targets high lipoprotein (a) levels, SYH2070 (ANGPTL3) covers high lipid levels, high triglycerides, SYH2061 (C5) targets complement-mediated diseases and IgA nephropathy, focusing on kidney diseases. The above pipelines are all in Phase I clinical trials. Risk factors: Increased competition risk, clinical trial results falling short of expectations risk, clinical time and cost exceeding expectations risk, BD falling short of expectations risk, and market listing progress falling short of expectations risk.