China Post Securities has released a research report stating that 3SBIO (01530) is a long-established enterprise in China's pharmaceutical sector, possessing several cash cow products such as Tepotinib, which fuel its R&D and innovation. The licensing of 707 has been finalized, enhancing the company's profits while reducing its risk exposure in global market expansion. The bank forecasts the company's net profit attributable to shareholders for 2026-2028 to be 27.3/28.3/31.9 billion yuan (previous estimates: 24.1/27.6/- billion yuan), representing year-on-year growth of 68%/+4%/+13%, with corresponding P/E ratios of 20/19/17. It maintains a "Buy" rating. The main points from China Post Securities are as follows:

Event: In 2025, the company achieved revenue of 177.0 billion yuan, a year-on-year increase of 94.3%. Net profit attributable to shareholders was 84.8 billion yuan, up 305.8% year-on-year. Adjusted operating net profit, excluding non-operating items such as equity incentives, reached 84.5 billion yuan, an increase of 264.6% year-on-year.

Out-licensing Drives High Performance Growth, Core Business Declines Slightly Due to Policy Impacts The licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody 707 recognized licensing revenue of 94.3 billion yuan during the reporting period, accounting for 53.3% of total revenue. Meanwhile, the company's original biopharmaceutical sales business faced challenges, with annual sales of 80.1 billion yuan, down 10.3% year-on-year, primarily due to price reductions from volume-based procurement and impacts from national medical insurance policies. The CDMO business maintained rapid growth, with revenue of 2.6 billion yuan, up 46.3% year-on-year.

707 (PD-1/VEGF Bispecific) Licensed to Pfizer, Multiple Clinical Trials Accelerate Global Value Realization The PD-1/VEGF bispecific antibody is regarded as a core foundational therapy for next-generation tumor immunotherapy, with a broad market potential. Pfizer is fully advancing its development, and its clinical value is expected to continue expanding: In 2025, Pfizer announced 7 recently initiated clinical exploratory trials, including Phase III trials for NSCLC and CRC, a Phase 2/3 trial for SCLC, and several Phase 1/2 trials. In 2026, 5 global MRCT Phase III trials are planned to commence, which are expected to trigger clinical development milestone payments. Additionally, 9 clinical trials have been registered on the ClinicalTrials.gov website. According to the company's announcement, patient enrollment has begun for a total of 3 global Phase III registration trials for 707 combined with chemotherapy as first-line treatment for Sq & NSq NSCLC (2 trials) and for mCRC (1 trial). Recruitment has started for 7 clinical trials. In terms of completion milestones, early data for first-line monotherapy or combination therapy in HCC/RCC/mUC, among others, are expected to be read out in 2027, with key data from multiple Phase III trials anticipated in 2029/2030.

New Products Set to Contribute Revenue, Ample Cash Reserves Support R&D Layout In 2025, the company's new products Tepotinib and Eltrombopag tablets were approved for marketing. The anti-IL-17A monoclonal antibody (608) was approved in February 2026. Marketing applications for the anti-IL-1β monoclonal antibody (613), anti-IL-4Rα monoclonal antibody (611), and anti-VEGF monoclonal antibody (601) have been accepted by the CDE and are expected to contribute significant revenue within the next 2-3 years, offsetting pressure on traditional products. As of the end of 2025, the company held cash, cash equivalents, and deposits totaling 158.6 billion yuan, with total cash resources reaching 204 billion yuan. This provides solid support for subsequent global clinical development of the pipeline, upgrades to production facilities, and potential external collaborations.

Risk Warnings: Uncertainty in out-licensing revenue; uncertainty in revenue growth due to volume-based procurement and medical insurance policies; risk of innovative drug R&D failure; intensifying market competition risk; geopolitical risk.