UOB Kay Hian
Date of Report: Tuesday, 19 August 2025
Hansoh Pharmaceutical Group Delivers Strong 1H25 Results and Raises 2025 Revenue Guidance
Executive Summary
Hansoh Pharmaceutical Group, a leading R&D-driven pharmaceutical company in China, has posted robust results for the first half of 2025, surpassing expectations with double-digit growth in revenue and profits. The company’s dynamic portfolio of innovative drugs, strategic partnerships, and disciplined cost controls underpin a confident outlook, prompting management to raise its 2025 revenue growth guidance to the high double digits. UOB Kay Hian maintains a BUY rating and has increased the target price for Hansoh Pharma shares, highlighting strong earnings momentum and multiple catalysts ahead.
Company Overview
Company Name: Hansoh Pharmaceutical Group Company
Listing: 3692 HK (Hong Kong Stock Exchange)
Sector: Health Care
Market Cap: HK$220.4 billion (US$28.2 billion)
Shares Outstanding: 5,947.2 million
Major Shareholders: Ms. Zhong Huijuan (65.6%), Mr. Cen Junda (15.5%)
Founded: 1995
Focus: Innovative pharmaceuticals and R&D
1H25 Financial Highlights
Hansoh Pharmaceutical’s first half 2025 performance exceeded both internal and market forecasts, with impressive growth driven mainly by innovative drug sales and collaboration revenues.

Key Profitability Ratios:
Gross Profit Margin: 91.1% (flat YoY)
Operating Margin: 49.6% (+1.7ppt YoY)
Adjusted Net Profit Margin: 42.2% (+0.3ppt YoY)
Selling Expense Ratio: 24.5% (-2.0ppt YoY)
Admin Expense Ratio: 4.6% (-0.8ppt YoY)
R&D Expense Ratio: 19.4% (+1.0ppt YoY)
Segment Performance and Revenue Mix
Surge in Innovative Drug Revenue
Innovative drug revenue soared by 22.1% YoY to Rmb6.14 billion, now accounting for 82.7% of total revenue.
Generics revenue declined 12.5% YoY to Rmb1.29 billion due to group purchasing organization (GPO) price pressure.
Oncology drugs remain the largest contributor, at Rmb4.53 billion (60.9% of total revenue), growing 1.3% YoY.
Metabolic and other products achieved the fastest growth, up 134.5% YoY to Rmb1.4 billion (18.8% of total revenue).
Collaboration revenue from innovative drugs grew 18.1% YoY to Rmb1.66 billion.
Strategic Updates and Revenue Guidance
Upgraded 2025 Revenue Guidance
Management has raised 2025 revenue growth guidance from double-digit to high double-digit, projecting innovative drug revenue to surpass Rmb10 billion, a growth of over 25% YoY.
Flagship drug Ameile is expected to reach over Rmb6 billion in sales in 2025, ahead of earlier 2026 targets, driven by new indication approvals for inoperable non-small cell lung cancer (NSCLC) and adjuvant therapy post-tumor resection.
Ameile’s peak sales are projected at Rmb8 billion before 2030, with only mild price pressure anticipated from 2025 NRDL negotiations.
Additional indication approvals for Ameile and Xinyue (Inebilizumab Injection) are expected, with Xinyue targeting new approvals for IgG4-related diseases and generalized myasthenia gravis (gMG) in 2026.
R&D Momentum
Hansoh Pharma has 40+ innovative products across 70+ clinical trials.
In 1H25, eight new innovative drugs entered clinical trials; three key candidates advanced to phase III, targeting bone/soft tissue sarcoma, ovarian cancer, and moderate to severe plaque psoriasis.
Out-Licensing and Collaboration
Hansoh received a US$112 million upfront payment from Merck Sharp & Dohme (MSD) in 1H25.
A recent out-licensing deal with Regeneron for HS-20094 brought in an US$80 million upfront payment.
The company is actively globalizing by conducting early-stage overseas trials on promising drug candidates.
Financial Forecast and Valuation
Key Financials and Forecast (Rmb millions unless otherwise stated)

Dividend and Cash Position
Interim dividend for 1H25: 23.16 HK cents, up 15.2% YoY, with a payout ratio of 40.5%.
Net cash to equity ratio is highly healthy, projected at -54.3% by 2027F, reflecting strong liquidity.
No short-term or long-term debt reported for the forecast period.
Valuation and Analyst Recommendation
Rating: BUY (Maintained)
Target Price: HK$50.00 (raised from HK$40.00)
Valuation Method: SOTP (Sum-of-the-Parts), based on 21x 2025F PE for existing drugs plus NAV-derived pipeline value (10.4% WACC, 4% terminal growth).
Catalysts: Strong revenue/earnings growth, new drug/indication approvals, productive business development programs.
Outlook and Investor Takeaways
Hansoh Pharmaceutical is set to continue its high-growth trajectory, powered by a deep pipeline of innovative drugs, expanding global partnerships, and disciplined operational execution. The company’s raised guidance and robust financials make it a compelling pick for investors seeking exposure to China’s pharmaceutical innovation. Continued progress in clinical trials, new product launches, and international out-licensing deals are expected to drive further shareholder value.
Key Risks to Monitor:
Potential price pressures in China’s dynamic healthcare market, especially for generics and NRDL-negotiated products.
Execution risk in R&D and regulatory approval processes.
Competitive and patent landscape in targeted therapeutic areas.
Conclusion
Hansoh Pharmaceutical Group stands out as one of China’s premier pharmaceutical innovators, demonstrating the ability to deliver on both financial growth and pipeline advancement. With a fortified balance sheet, accelerating R&D, and a rising international profile, Hansoh Pharma offers a compelling growth story for investors in the healthcare sector.
Report prepared by UOB Kay Hian.