Group 1: Non-Metallic Building Materials - The building materials industry shows signs of structural growth that gradually outweigh environmental impacts, with Q3 2025 reports indicating a recovery in revenue and profitability for several companies [2][25] - The cement sector continues to perform well overseas, particularly in Africa, while domestic demand and prices have weakened, suggesting a potential bottoming out in 2024 [4][26] - In the consumer building materials sector, revenue growth disparities among sub-industries are widening, driven by the impacts of real estate and local debt [5][27] Group 2: Biopharmaceuticals - Huadong Medicine's industrial segment maintains steady growth, with Q3 2025 revenue of 37.28 billion yuan, up 14.95% year-on-year, and net profit of 8.94 billion yuan, up 18.43% [7][8] - The medical aesthetics business faces short-term pressure due to economic factors, with a decline in revenue for both domestic and overseas operations [8] - The company is advancing its innovative pipeline, with several clinical trials ongoing for various cancer treatments [9][33] Group 3: Power Equipment and New Energy - Haibo Sichuang, a leader in energy storage, is expected to benefit from high industry demand, with Q3 2025 revenue reaching 3.39 billion yuan, a year-on-year increase of 124.4% [10][11] - The company's profitability has improved significantly, with a gross margin of 18.64% and a net margin of 9.05% in Q3 2025 [11] - The global energy storage market is projected to grow by 40%-50% in 2026, with significant contributions from both domestic and international markets [13] Group 4: Financial Engineering - The report highlights various asset allocation strategies, with the macro-factor-based strategy yielding a return of 4.23% in 2025, outperforming other strategies [14][15] - The performance of domestic asset strategies shows a positive trend, with October returns indicating a stable investment environment [15][16] - The overall economic outlook remains cautious, with manufacturing PMI indicating a contraction, while service sector activity shows slight improvement [16]

Investment Rating - The investment rating for Huadong Medicine is maintained as "Buy" [1] Core Insights - The Phase II results of DR10624 for treating severe hypertriglyceridemia (SHTG) showed significant efficacy, with triglyceride levels reduced by up to 74.5% and liver fat eliminated by up to 67% during a 12-week treatment period [4] - The company is expected to achieve net profits of 4.06 billion, 4.72 billion, and 5.54 billion yuan for the years 2025 to 2027, with corresponding EPS of 2.32, 2.69, and 3.16 yuan [4] - The current stock price corresponds to a PE ratio of 18.3, 15.8, and 13.5 for the years 2025, 2026, and 2027 respectively [4] Financial Summary - Revenue projections for Huadong Medicine are 40.62 billion, 41.91 billion, 44.68 billion, 47.95 billion, and 51.83 billion yuan from 2023 to 2027, with year-over-year growth rates of 7.7%, 3.2%, 6.6%, 7.3%, and 8.1% respectively [8] - The gross margin is expected to improve from 32.4% in 2023 to 35.4% in 2027, while the net margin is projected to increase from 7.0% to 10.7% over the same period [8] - The return on equity (ROE) is forecasted to rise from 13.2% in 2023 to 15.7% in 2027 [8] Clinical Development and Market Position - The company is advancing its clinical pipeline, with DR30206 in Phase I/II and HDM2005 expected to present Phase I data at the ASH annual meeting in December 2025 [6] - Huadong Medicine is also exploring the MASH indication for DR10624, with data expected in the first half of 2026, positioning itself in a competitive market with multiple multinational corporations targeting FGF21 [5]

Core Viewpoint - Huadong Medicine's subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical, has received acceptance for the market approval application of ZORYVE® 0.15% cream for treating mild to moderate atopic dermatitis in patients aged 6 and above, marking a significant milestone in the product's development [1][4] Group 1: Product Development and Market Potential - The acceptance of the ZORYVE® 0.15% cream application signifies a critical advancement in Huadong Medicine's research and development process, enhancing its core competitiveness in the treatment of autoimmune skin diseases [1][4] - ZORYVE® is a non-steroidal phosphodiesterase-4 (PDE4) inhibitor, which helps reduce inflammation by inhibiting the enzyme that increases pro-inflammatory mediators [2] - The atopic dermatitis market in China is projected to grow significantly, with an estimated market size of approximately $970 million in 2022, expected to reach $7.07 billion by 2030, reflecting a compound annual growth rate (CAGR) of 28.2% [2] Group 2: Strategic Positioning and Product Portfolio - ZORYVE® has received full recognition from the FDA in the United States, with a mature product matrix covering multiple age groups and indications, including treatments for atopic dermatitis and psoriasis [3] - Huadong Medicine is focusing on autoimmune diseases as one of its three core development directions, continuously enhancing its product introduction and independent research and development capabilities [3] - The company has a comprehensive range of products and pipeline candidates addressing various autoimmune diseases, positioning itself as one of the most diversified pharmaceutical companies in this field in China [3]

Core Viewpoint - The company announced that its subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., received a Notice of Acceptance from the National Medical Products Administration (NMPA) for the marketing application of ZORYVE® (0.15% roflumilast cream) [1] Group 1: Product Development - The marketing application for ZORYVE® has been accepted, indicating progress towards commercialization in China [1] - Phase III clinical trial results demonstrate that ZORYVE® (0.15%) shows positive efficacy and good safety in patients aged 6 and above with mild to moderate atopic dermatitis [1] - The efficacy and safety data from the domestic study align with overseas research data from the partner company, Arcutis, supporting the application for market approval in China [1]

Core Viewpoint - Huadong Medicine's subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical Co., has received a notice of acceptance from the National Medical Products Administration for the marketing application of ZORYVE (0.15% Roflumilast Cream) [1] Group 1: Product Development - Roflumilast cream is an innovative topical formulation introduced through a collaboration agreement signed in August 2023 between Huadong Medicine's subsidiary and Arcutis Biotherapeutics, Inc. [1] - The subsidiary holds exclusive rights for the product in Greater China (including mainland China, Hong Kong, Macau, and Taiwan) and Southeast Asia (including Indonesia, Singapore, the Philippines, Thailand, Myanmar, Brunei, Cambodia, Laos, Malaysia, and Vietnam) [1] Group 2: Regulatory Milestones - The acceptance of the marketing application by the National Medical Products Administration marks a significant regulatory milestone for the company [1] - This step is crucial for the development, registration, production, and commercialization of the product in the specified regions [1]

Core Viewpoint - Huadong Medicine (000963) announced that its wholly-owned subsidiary, Sino-American Huadong, received the Acceptance Notice from the National Medical Products Administration for the marketing application of ZORYVE® (0.15% Roflumilast Cream), which is intended for local treatment of mild to moderate atopic dermatitis in patients aged 6 and above [1] Group 1 - The marketing application for Roflumilast Cream has been accepted, indicating progress in the drug approval process [1] - The drug is specifically designed for local treatment of atopic dermatitis, targeting a significant patient demographic [1] - The acceptance by the National Medical Products Administration is a crucial step towards commercialization [1]

Core Viewpoint - Huadong Medicine (000963.SZ) announced that its wholly-owned subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., received the acceptance notice from the National Medical Products Administration (NMPA) for the marketing authorization application of Roflumilast cream (ZORYVE) 0.15% on November 10, 2025 [1] Group 1 - ZORYVE's active ingredient, Roflumilast, is a highly active and selective non-steroidal phosphodiesterase-4 (PDE4) inhibitor, which can reduce inflammation by inhibiting the production of pro-inflammatory mediators [1] - The Phase III clinical trial results in China showed that ZORYVE 0.15% demonstrated positive efficacy and good safety in subjects aged 6 years and older with mild to moderate atopic dermatitis, achieving the primary endpoint [1] - The overall efficacy and safety data of ZORYVE in China are similar to the overseas research data from the partner Arcutis, supporting its domestic application for marketing [1] Group 2 - In the United States, ZORYVE 0.05% cream is approved by the FDA for the topical treatment of mild to moderate atopic dermatitis in children aged 2 to 5 years [2] - ZORYVE 0.15% cream is approved for the topical treatment of mild to moderate atopic dermatitis in patients aged 6 years and older [2] - ZORYVE 0.3% cream is approved for the topical treatment of plaque psoriasis in patients aged 6 years and older, while ZORYVE 0.3% foam is approved for seborrheic dermatitis in patients aged 9 years and older and for plaque psoriasis on the scalp and body in patients aged 12 years and older [2]

Core Viewpoint - East China Pharmaceutical (华东医药) announced that its wholly-owned subsidiary, Hangzhou Zhongmei East Pharmaceutical Co., Ltd., received a Notice of Acceptance from the National Medical Products Administration (NMPA) for the marketing application of Roflumilast cream (ZORYVE) 0.15% on November 10, 2025 [1] Group 1: Product Information - Roflumilast, the active ingredient in ZORYVE, is a highly active and selective non-steroidal phosphodiesterase-4 (PDE4) inhibitor, which can reduce inflammation by inhibiting the production of pro-inflammatory mediators [1] - The Phase III clinical study results in China showed that ZORYVE 0.15% demonstrated positive efficacy and good safety in subjects aged 6 years and older with mild to moderate atopic dermatitis, achieving the primary endpoint [1] - The overall efficacy and safety data of ZORYVE in China are similar to the overseas research data from the partner company, Arcutis, supporting its domestic application for marketing [1] Group 2: Regulatory Approvals - In the United States, ZORYVE 0.05% cream is approved by the FDA for the topical treatment of mild to moderate atopic dermatitis in children aged 2 to 5 years [2] - ZORYVE 0.15% cream is approved for topical treatment of mild to moderate atopic dermatitis in patients aged 6 years and older [2] - ZORYVE 0.3% cream is approved for the topical treatment of plaque psoriasis in patients aged 6 years and older, while ZORYVE 0.3% foam is approved for seborrheic dermatitis in patients aged 9 years and older and for plaque psoriasis of the scalp and body in patients aged 12 years and older [2]

Core Viewpoint - Huadong Medicine (000963.SZ) announced that its wholly-owned subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., received the Acceptance Notification from the National Medical Products Administration (NMPA) for the marketing application of Roflumilast Cream (ZORYVE®) 0.15% on November 10, 2025 [1] Group 1 - Roflumilast is a highly active and selective non-steroidal phosphodiesterase-4 (PDE4) inhibitor, which can reduce inflammation by inhibiting the production of pro-inflammatory mediators [1] - The Phase III clinical study results in China showed that Roflumilast Cream (ZORYVE®) 0.15% demonstrated positive efficacy and good safety in subjects aged 6 years and older with mild to moderate atopic dermatitis, achieving the primary endpoint [1] - The overall efficacy and safety data of Roflumilast Cream (ZORYVE®) are similar to the overseas research data from the partner Arcutis, supporting its application for domestic marketing [1] Group 2 - In the United States, ZORYVE® 0.05% cream is approved by the FDA for the treatment of mild to moderate atopic dermatitis in children aged 2 to 5 years [2] - ZORYVE® 0.15% cream is approved for local treatment of mild to moderate atopic dermatitis in patients aged 6 years and older [2] - ZORYVE® 0.3% cream is approved for local treatment of plaque psoriasis in patients aged 6 years and older, while ZORYVE® 0.3% foam is approved for seborrheic dermatitis in patients aged 9 years and older and for plaque psoriasis in patients aged 12 years and older [2]

Core Viewpoint - Huadong Medicine's subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical, received acceptance for the marketing application of Roflumilast cream (ZORYVE®) 0.15% from the National Medical Products Administration (NMPA) in China, indicating a significant step towards market entry for this treatment for atopic dermatitis [1] Group 1 - ZORYVE® contains Roflumilast, a highly selective non-steroidal phosphodiesterase-4 (PDE4) inhibitor, which helps reduce inflammation by inhibiting the production of pro-inflammatory mediators [1] - The Phase III clinical trial results in China demonstrated positive efficacy and good safety for ZORYVE® 0.15% in patients aged 6 years and older with mild to moderate atopic dermatitis, achieving the primary endpoint [1] - The efficacy and safety data from the Chinese study are similar to those from overseas studies conducted by the partner company, Arcutis, supporting the domestic application for market approval [1] Group 2 - In the United States, ZORYVE® 0.05% cream is approved by the FDA for the treatment of mild to moderate atopic dermatitis in children aged 2 to 5 years [2] - ZORYVE® 0.15% cream is approved for local treatment of mild to moderate atopic dermatitis in patients aged 6 years and older [2] - ZORYVE® 0.3% cream is approved for local treatment of plaque psoriasis in patients aged 6 years and older, while the 0.3% foam formulation is approved for seborrheic dermatitis in patients aged 9 years and older and for plaque psoriasis in patients aged 12 years and older [2]