2026 R&D day: investing for globalisation

Research evidence excerpt

2026 R&D day: investing for globalisation

Macquarie Equity Research Sino Biopharmaceutical

Key Risks to Investment Thesis Company Description

• The business model of buying or in-licensing assets (drugs Sino Biopharm is one of the leading large biopharmaceutical

and other firms) has impairment risks. companies in China. Operating through subsidiaries, Sino

• Trial development risk for outlicensed assets. Biopharm researches, develops, produces, and sells a

• History of restatements and disposal of non-core variety of biopharmaceutical and chemical medicines for

oncology, liver diseases, surgery/analgesia, respiratory system businesses distorts the base year, limiting comparability.

diseases and others. Its key subsidiaries include Beijing Tide

• SBP is a family business with the family members in Pharmaceutical, Jiangsu Chia Tai Tianqing Pharmaceutical,

key positions. There has been some turnover of senior Nanjing Chia Tai Tianqing Pharmaceutical, and Beijing Chia Tai

management. Green Continent Pharmaceutical.

Figure 1 - SBP product sales breakdown by Figure 2 - SBP's forward PE chart (2021-2026YTD)

therapeutic areas

Source: Macquarie Research, June 2026 Source: Bloomberg (as of 04 Jun 2026), Macquarie Research, June 2026

Sino Biopharmaceutical (1177 HK) CNY/(m) unless otherwise noted

Income Statement Dec FY 2025A 2026E 2027E 2028E 2H/25A 1H/26E Balance Sheet 2025A 2026E 2027E 2028E

Revenue 31,834 35,772 38,496 42,096 14,260 18,959 Cash 12,181 20,839 27,088 33,509

Cost of Goods Sold 5,708 6,367 6,891 7,577 2,627 3,375 Receivables 6,264 6,860 7,383 8,073

Gross Profit 26,127 29,405 31,605 34,518 11,633 15,584 Inventories 2,257 2,442 2,643 2,906

EBITDA 7,431 8,498 8,847 9,403 3,447 4,256 Investments 10,598 10,598 10,598 10,598