GTHT has initiated coverage on SINO BIOPHARM (01177) with a "Buy" rating and a target price of HK$10. The firm forecasts earnings per share of RMB 0.293, RMB 0.259, and RMB 0.283 for 2025, 2026, and 2027 respectively.

The firm notes that investment sentiment in mainland China's healthcare sector has rebounded significantly over the past year, with SINO BIOPHARM positioned particularly favorably in this trend, driven by enhanced innovation capabilities, global expansion, and improved capital market sentiment.

As one of China's largest and most developed pharmaceutical companies, SINO BIOPHARM's scale, financing capacity, and commercial infrastructure enable it to both acquire promising domestic biotech companies and accelerate the late-stage development and commercialization of assets.

GTHT believes the company has significantly increased its business development (BD) investments in recent years, rapidly expanding its innovative drug portfolio. Beyond near-term out-licensing potential, the firm observes that SINO BIOPHARM is approaching multiple key catalysts and potential product approvals that will bring new value to its innovation pipeline.

Additionally, the company has several important clinical data readouts scheduled for release, which are expected to advance its innovative R&D progress.