Guotai Junan International: Hengrui Medicine is rated "6.1" for its IPO in Hong Kong as a leading innovative pharmaceutical company.

Guojing Guoji Research Report pointed out that Hengrui Medicine is a rooted in China, globally leading innovative pharmaceutical company. In 2024, the company's revenue was 27.985 billion yuan, with a net profit attributable to the parent company of 6.337 billion yuan, and the gross profit margin increased by 1.6 percentage points to 86.2%. The core growth engine is innovative drug revenue, with the percentage of sales revenue from innovative drugs increasing from 38.1% in 2022 to 43.4% in 2023, and further increasing to 46.3% in 2024. Heavyweight varieties such as PD-L1 & TGF- and HER2ADC are expected to continue to increase in volume, combined with overseas licensing cooperation, forming a dual driving force of "domestic volume + overseas licensing". The company's IPO issue price is HK$41.45-44.05, with a discount of 24-28% compared to the A-share price, corresponding to a PE ratio of 40x-42.4x in 2024. The company has strong research and development capabilities, a significant discount compared to A-share pricing, and a relatively high enthusiasm for new listings in the Hong Kong stock market recently, giving the IPO a dedicated rating of "6.1".