[Fortune] [Guotai Haitong Pharma] CSPC Group & CSPC Innovation earnings forecast: endogenous growth exceeds expectations, BD revenue significantly recognized

English summary

Last night, CSPC Group & CSPC Innovation released earnings forecasts: 1) CSPC Group expects H1 net profit attributable to parent of RMB 5.9-6.2 billion, a significant increase from RMB 2.55 billion in the same period last year. Among this, the first payment of USD 840 million (approximately RMB 5.74 billion) from the peptide drug cooperation transaction with AstraZeneca is expected to be recognized in Q2 2026, contributing the main growth to H1 performance. In addition, the company's finished drug sales revenue increased 10% YoY in H1. 2) CSPC Innovation recorded H1 2026 net profit attributable to parent of RMB 1.18-1.36 billion, and net profit excluding non-recurring items of RMB 1.15-1.33 billion, turning from a significant loss in the same period last year. This is mainly due to its subsidiary Jushi Biologics receiving a first payment of USD 420 million from the AstraZeneca peptide transaction. In addition, the company's PDL1 monoclonal antibody Enlangsubaimab, Omalizumab, and Ustekinumab were approved for marketing, and commercialization continues to advance; multiple data readouts at ESMO & WCLC.…