External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

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<ul><li>Management expects a recovery in product sales in 2H25. CSPC reported total revenue of RMB13.3bn in 1H25, including RMB1.08mn from out-licensing (BD) income.</li><li>Excluding BD contributions, core revenue reached RMB12.2bn, down 25% YoY and 4% HoH, representing 44% of our prior FY25 estimate and broadly in line with expectations.</li><li>In 2Q25, core revenue declined by 6% QoQ (or -22% YoY), primarily due to continued softness in NBP sales, impacted by tighter hospital prescription controls, and the implementation of volume-based procurement (VBP) for Duomeisu and Jinyouli. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Management expects a recovery in product sales in 2H25. CSPC reported total revenue of RMB13.3bn in 1H25, including RMB1.08mn from out-licensing (BD) income.Excluding BD contributions, core revenue reached RMB12.2bn, down 25% YoY and 4% HoH, representing 44% of our prior FY25 estimate and broadly in line with expectations.In 2Q25, core revenue declined by 6% QoQ (or -22% YoY), primarily due to continued softness in NBP sales, impacted by tighter hospital prescription controls, and the implementation of volume-based procurement (VBP) for Duomeisu and Jinyouli. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Two More Large-Scale BD Deals Anticipated in 2H25

<ul><li>Business sequentially recovered in 1Q. CSPC reported total revenue of RMB7.0bn in 1Q25, including RMB718mn from out-licensing (BD) income.</li><li>Excluding the impact from BD, core revenue reached RMB6.3bn (+1% QoQ), representing 22% of our previous FY25 estimates.</li><li>Excluding the BD impact, core net profit reached RMB868mn (+58% QoQ), accounting for 27% of our FY25 estimates. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Business sequentially recovered in 1Q. CSPC reported total revenue of RMB7.0bn in 1Q25, including RMB718mn from out-licensing (BD) income.Excluding the impact from BD, core revenue reached RMB6.3bn (+1% QoQ), representing 22% of our previous FY25 estimates.Excluding the BD impact, core net profit reached RMB868mn (+58% QoQ), accounting for 27% of our FY25 estimates. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Large-Scale BD Out-Licensing Deals Likely in near Term

<ul><li>Inventory destocking in oncology products continues. In FY24, CSPC’s total revenue declined by 7.8% YoY to RMB29.0bn, with finished drug sales falling 7.4% YoY to RMB23.7bn.</li><li>The weakness was primarily due to a 28.3% YoY drop in oncology drug sales to RMB4.4bn, as well as a 14.8% decline in cardiovascular drug sales to RMB2.1bn.</li><li>The sharp fall in oncology revenue was mainly due to significant price cuts for Jinyouli and Duomeisu under VBP schemes, which triggered inventory destocking in 2H24. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Inventory destocking in oncology products continues. In FY24, CSPC’s total revenue declined by 7.8% YoY to RMB29.0bn, with finished drug sales falling 7.4% YoY to RMB23.7bn.The weakness was primarily due to a 28.3% YoY drop in oncology drug sales to RMB4.4bn, as well as a 14.8% decline in cardiovascular drug sales to RMB2.1bn.The sharp fall in oncology revenue was mainly due to significant price cuts for Jinyouli and Duomeisu under VBP schemes, which triggered inventory destocking in 2H24. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Resilient BD Momentum Offsets Sales Pressure

<ul><li>FY24 net profit to decline. CSPC released profit warning for FY24.</li><li>Mgmt expects its FY24 attributable net profit to decline by 26% YoY to RMB4.35bn, which was 11% below our previous estimate.</li><li>The worse-than-expected earnings was mainly due to weak finished drug sales. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FY24 net profit to decline. CSPC released profit warning for FY24.Mgmt expects its FY24 attributable net profit to decline by 26% YoY to RMB4.35bn, which was 11% below our previous estimate.The worse-than-expected earnings was mainly due to weak finished drug sales. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Earnings Decline Amid Pricing Pressure

<ul><li>Moderate growth in 1H24. In 1H24, CSPC’s total revenue increased by 1.3% YoY to RMB16.28bn and the attributable net profit increased by 1.8% YoY to RMB3.02bn, accounting for 46% and 45% of our previous full-year estimates.</li><li>For 2Q24, the total revenue was RMB5.99bn (-8.1% YoY, -20.8% QoQ) and the attributable net profit was RMB2.19bn (+42.2% YoY, +35.7% QoQ).</li><li>The net profit increase was mainly due to the reduced selling expenses in 2Q24, which decreased by 38.6% QoQ to RMB1.82bn. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Moderate growth in 1H24. In 1H24, CSPC’s total revenue increased by 1.3% YoY to RMB16.28bn and the attributable net profit increased by 1.8% YoY to RMB3.02bn, accounting for 46% and 45% of our previous full-year estimates.For 2Q24, the total revenue was RMB5.99bn (-8.1% YoY, -20.8% QoQ) and the attributable net profit was RMB2.19bn (+42.2% YoY, +35.7% QoQ).The net profit increase was mainly due to the reduced selling expenses in 2Q24, which decreased by 38.6% QoQ to RMB1.82bn. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CSPC Pharmaceutical (1093 HK) - Legacy Products Faced Pricing Pressures

China

CSPC Pharmaceutical Group Limited is a prominent Chinese pharmaceutical company engaged in the research, development, manufacturing, and sale of pharmaceutical products, including innovative drugs and bulk drugs. Its key products include innovative drugs for nervous system diseases, oncology, anti-infectives, and cardiovascular diseases, as well as bulk products like vitamin C, antibiotics, and caffeine. The company was formally established in 1997 and is headquartered in Shijiazhuang, Hebei Province, China.

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CSPC Pharmaceutical (1093 HK)