Goldman Sachs: Kanglong Bio and Lilly reached a cooperation agreement, giving it a "buy" rating on the Hong Kong stock.

Goldman Sachs released a research report stating that Kanglong Huacheng has reached a cooperation agreement with Eli Lilly to support the local supply of Orforglipron in China. Lilly is expected to invest $200 million in Kanglong Huacheng to support its technological capabilities, and as the project progresses, there is potential to further expand the scope of cooperation. As for the impact on Kanglong Huacheng's fundamentals, a more substantial assessment of profit contribution and strategic significance will depend on further disclosures. The bank expects that the management will provide more details on the cooperation model, potential order size, and commercialization trajectory of Orforglipron in China during the upcoming earnings conference call. The bank expects Kanglong Huacheng to receive a positive market response as the partnership emphasizes Lilly's recognition of Kanglong Huacheng as a qualified partner in the local GLP-1 supply chain. The bank recommends a "buy" rating for Kanglong Huacheng's Hong Kong shares with a target price of HK$30.7 and a "neutral" rating for its A shares with a target price of 38 yuan.