Daily Brief China: Innovent Biologics Inc, Lee’s Pharmaceutical, Yuexiu Real Estate Investment Trust, IMPACT Therapeutics, Videotimes Technology Holdings and more

• Innovent Biologics Inc (1801 HK) has announced 1H25 result, with total revenue increasing 51% YoY. The company recorded its maiden net profit of RMB834M on a reported basis.
• Despite an overcrowded PD-1 inhibitor market in China, core oncology product, Tyvyt maintained good growth momentum. Tyvyt is under NDA review for its ninth and tenth indications.
• In June, Innovent received approval for mazdutide, first-in-class chronic weight management drug in China. In 2H25, mazdutide is expected to receive approval for a second indication in type 2 diabetes.

• Lee’s Pharmaceutical is an integrated biopharmaceutical company focused on the Chinese market, with a dual strategy of developing proprietary drugs and licensing international products.
• The company demonstrated a significant financial turnaround in the most recent fiscal year, with substantial growth in revenue and net income, reversing a trend of long-term decline.
• Despite a recent recovery, the company faces high uncertainty due to a history of volatile earnings and significant long-term declines in key metrics like net income and market capitalization, balanced against a currently attractive valuation.

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• In today’s Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources, Nickel Industries
• The UST curve twisted slightly steeper yesterday, with the front-end continuing to be supported by the prospect of Fed rate cuts against the backdrop of a looming US government shutdown.
• The yield on the 2Y UST fell 1 bp to 3.61%, while that on the 10Y UST was up 1 bp at 4.15%. Equities climbed for the third day, with the S&P 500 and Nasdaq up 0.4% and 0.3%, respectively.

• Impact Therapeutics, a China-based near-commercial-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. GS and CICC are the joint sponsors
• In this note, we look at the company’s core products, senaparib/IMP4297, and key products IMP1734 and IMP9064.
• We also look at the company’s pre-IPO investors and management team.

• Videotimes adopts a “domestic production + overseas sales” model. The Company competes for market share by relying largely on Amazon channel and price cuts, with overall revenue showing upward trend.
• Due to Sino-US tariff war and the risk of US dollar depreciation, future performance decline seems inevitable. Our forecast for 2025 is revenue/net profit could be down 4.8% YoY/21% YoY.
• Valuation of Videotimes could be lower than peer. A comfortable range is P/E of 10-15x. However, if 2025 performance decline is confirmed, valuation may be revised down to 6-10x P/E.