Hansoh delivered strong 2025 results, with revenue and net profit growing 22.6% and 27.1% YoY, respectively, driven by continued robust growth in innovative drugs and collaboration products, which now account for more than 80% of total revenue. In our view, the results further confirm Hansoh’s successful transition into an innovationdriven pharmaceutical company. Looking into 2026, management guided for double-digit growth in both product sales and collaboration revenue, excluding any potential new BD deals. Post results, we lifted our TP to HK$43.5, reiterate BUY.
Key Factors for Rating
2025 results beat expectations: Hansoh reported strong 2025 results, with revenue rising 22.6% YoY to RMB15.03bn and net profit increasing 27.1% YoY to RMB5.56bn. Growth was mainly driven by continued strong momentum in innovative drugs and collaboration products, which together generated RMB12.35bn, up 30.4% YoY, and accounted for 82.2% of total revenue, further confirming Hansoh’s transition into an innovation-driven pharmaceutical company. By therapeutic area, CNS, oncology, anti-infectives, and metabolic/other diseases recorded revenue growth of -5%, +23%, +8%, and +67% YoY, respectively. Excluding collaboration income, innovative drugs already accounted for close to 80% of product revenue. Collaboration revenue reached RMB2.12bn, up 35% YoY, including RMB910m of upfront income from the Merck deal for the oral GLP-1 asset, plus milestone and service income from previously signed partnerships. At the same time, R&D expenses increased 24% YoY to RMB3.36bn, accounting for roughly 26% of total drug sales, while distribution and administrative expenses as a percentage of drug sales declined by 4ppts and 1.5ppts to 31.5% and 5.2%, respectively.
2026 outlook: Management guided for double-digit growth in both drug sales and collaboration revenue in 2026, excluding any potential new BD deals that may be signed during the year. This suggests that innovative drugs are providing solid sales growth, while previously out-licensed assets are gradually delivering clinical progress and recurring milestone income. The company also plans to continue increasing R&D investment in 2026. Management expects more than 10 new molecules to enter the clinical stage, including siRNA assets, and guided for R&D expenses to increase by more than 30% YoY versus 2025. Gross margin and selling expense ratio are expected to remain broadly stable versus 2025.
Updates on key products/candidates: Ameile: Management expects Ameile alone to reach RMB8bn in sales by 2030, while the broader franchise could exceed RMB10bn, including combinations with products such as c-Met inhibitors. Management also expects the adjuvant setting to eventually contribute more than one-third of Ameile revenue. HS-20093 (B7-H3 ADC): GSK is enrolling the global Phase III study of HS-20093 in 2L SCLC, plans to initiate more phase III studies in 2026, and is also running PoC studies in CRC, head and neck cancer, and GU tumors. HS-20089 (B7-H4 ADC): GSK has already started overseas Phase III studies in advanced endometrial cancer and ovarian cancer, with overseas Phase I/II data expected this year. HS-20094 (GLP-1/GIP dual agonist): Management expects HS-20094 to launch in 2H27 and plans to adopt a parallel medical + retail commercialisation strategy in China.
Key catalysts in 2026: NDA filings: HS-20093 in SCLC and osteosarcoma, HS-20094 in obesity, HS-10374 in psoriasis, and HS-10568 (CaSR) in secondary hyperparathyroidism in patients requiring hemodialysis; Phase III readouts or updates: B7-H3 ADC, B7-H4 ADC, and TYK2 inhibitor; Phase II data: HS- 10506 (OX2R) in insomnia; First-in-human data: 4th-generation EGFR-TKI, EGFR/c-Met ADC, oral IL-23, and oral GLP-1.
Key Factors for Rating
Lower-than-expected price cut on GPO and NRDL inclusion, (ii) slower-than expected sales ramp-up of innovative drugs, (iii) failure in key clinical trials.
Valuation
Post results, we increased our 2026–2027 revenue forecasts by 3–5%, lowered our selling and administrative expense assumptions, and raised our R&D expense forecasts in line with management’s guidance. We lift our target price to HK$43.5 and reiterate our BUY rating.