HENGRUI PHARMA (01276) surged over 5% in afternoon trading, closing up 5.02% at HK$76.3 with trading volume of HK$387 million.

The pharmaceutical company recently released its interim results, showing revenue growth of 16% year-over-year in the first half. Product sales revenue, excluding cooperation income, increased approximately 13%, primarily driven by rapid growth in innovative drug sales.

Additionally, the company announced plans to repurchase shares worth approximately 1-2 billion yuan for its employee stock ownership plan. The plan requires 100% unlocking conditions including annual innovative drug sales growth of over 25% from 2025-2027, annual submission of 5-8 new drug applications (including new indications), and nearly 20 new molecular entity investigational new drug applications.

Industry analysts note that the company's innovative revenue continues to grow with strong transformation momentum in innovation. The company has completed multiple significant business development deals, with overseas expansion becoming an important second growth curve.

Furthermore, based on the company's high-quality and well-structured innovative pipeline, HENGRUI PHARMA's research pipeline still contains numerous potential transaction opportunities. As the company's internationalization process accelerates, pipeline overseas expansion may contribute normalized profits and provide new growth drivers for the company.