Hua Yuan Securities has issued a research report forecasting that Hansoh Pharma (03692) will achieve net profits attributable to shareholders of 6.41 billion yuan, 7.26 billion yuan, and 8.58 billion yuan for the years 2026 to 2028, respectively. This represents year-on-year growth rates of 15.4%, 13.2%, and 18.3%, corresponding to price-to-earnings (P/E) ratios of 33, 29, and 25 times. The company's performance is robust, with its innovative drug pipeline progressively entering a harvest phase, prompting the maintenance of a "Buy" rating.
Hansoh Pharma reported its 2025 annual results, with total revenue reaching 15.028 billion yuan, a 22.6% increase year-on-year. Revenue from innovative drugs and partnered products amounted to 12.354 billion yuan, surging 30.4% and constituting 82.2% of total revenue. Profit was 5.555 billion yuan, up 27.1% year-on-year. Innovative products have become the core driver of performance growth.
A breakdown by therapeutic area shows: 1) The oncology segment generated revenue of 9.974 billion yuan, accounting for 66.4% of total revenue and remaining the core revenue driver; 2) The central nervous system segment contributed 1.310 billion yuan, or 8.7% of revenue; 3) The anti-infectives segment reported revenue of 1.586 billion yuan, representing 10.6%; 4) The metabolism and other diseases segment brought in 2.158 billion yuan, accounting for 14.3%.
The company's marketed core products provide a solid foundation, while its clinical pipeline is advancing actively, indicating promising future prospects. Seven innovative drugs are generating revenue in China, with eleven indications included in the National Reimbursement Drug List (NRDL). Key marketed products include: 1) Ameileptinib (Ameitinib), which gained approval for three new indications (two already included in the NRDL) and received Class I/preferred recommendation in eight national treatment guidelines; 2) Flumatinib, which was included in two national guidelines; 3) Inebilizumab, which gained approval for two new indications.
The clinical pipeline highlights include: 1) HS-20093, which is in Phase 3 trials for small cell lung cancer and osteosarcoma, with Proof-of-Concept (PoC) studies ongoing for head and neck cancer and castration-resistant prostate cancer, and designated as a Breakthrough Therapy by the NMPA for three indications; 2) HS-20089, in Phase 3 trials for ovarian cancer and also granted NMPA Breakthrough Therapy designation; 3) HS-20094, currently in Phase 3 clinical stages for type 2 diabetes, obesity, or overweight. Several other innovative products have also advanced into clinical trials for the first time.
Business development (BD) transactions are expected to provide a regularized stream of profits. Over the past three years, the company has completed over five out-licensing deals, covering assets from preclinical to late-stage development, with a total transaction value exceeding $9 billion. Notable deals include: 1) HS-20094 licensed to Regeneron in June 2025 for an upfront and milestone payment total of $2.01 billion; 2) HS-20110 licensed to Roche in October 2025 for cumulative payments exceeding $1.53 billion; 3) Ameileptinib licensed to Glenmark in December 2025 for cumulative payments over $1 billion.
Potential risks include failure in clinical development, intensifying competition, and sales performance falling short of expectations.