The 2025 performance outlook for A-share healthcare stocks presents a mixed picture. Data shows that as of February 1, a total of 283 healthcare stocks have provided preliminary insights into their 2025 performance. Based on the upper limit of forecasted net profit, 160 stocks saw year-on-year growth in attributable net profit. Among them, Sino Medical (688108) emerged as the "profit growth leader" with the highest anticipated increase exceeding 32-fold. While over half of the companies forecast profit growth, more than 120 companies anticipate a decline in 2025 performance. Notably, 39 stocks are facing their first loss since listing, including prominent names like Zhifei Biological, Zhenbaodao, and Sinocorp.
Furthermore, the performance previews indicate that the innovative drug sector is quietly approaching a turning point. Companies such as RemeGen and InnoCare achieved a turnaround to profitability. Although innovative drug firms like Junshi Biosciences and MicuRx Pharmaceuticals have not yet reached profitability, they show a clear trend of significantly reduced losses.
Sino Medical emerged as the "profit growth leader." Wind data reveals that as of February 1, based on the upper limit of forecasted net profit, 160 out of the 283 healthcare stocks that disclosed 2025 performance previews reported year-on-year growth in attributable net profit. Among the stocks anticipating profit growth, 65 companies, including WuXi AppTec, HanYu Pharmaceutical, CanSino Biologics, Tigermed, and Sansheng, have an upper limit for forecasted net profit growth exceeding 100%. Three stocks - Sino Medical, Tonghua Dongbao, and Huisheng Biological - project performance growth of over tenfold. Specifically, Sino Medical leads with the highest forecasted growth rate of over 32 times. Sino Medical expects its 2025 attributable net profit to be between 43 million and 50 million yuan, representing a year-on-year increase of 2767% to 3233%. The company attributed this significant profit growth to an estimated 13% to 15% rise in operating revenue, slight increases in operating costs and management expenses, alongside decreases in sales expenses, R&D costs, and asset impairment losses. The relatively small base of attributable net profit in the same period last year also contributed to the substantial growth.
Tonghua Dongbao also anticipates its 2025 performance to increase by over 30 times. Preliminary calculations by the company's finance department indicate an expected attributable net profit of approximately 1.242 billion yuan for 2025, marking a turnaround from a loss to a profit compared to the previous year. According to Wind data, Huashen Technology is expected to see the largest decline in performance. The company forecasts a 2025 attributable net loss ranging from -270 million to -330 million yuan, representing a projected decrease of 3935.75% to 4832.59% year-on-year. The increased loss is primarily attributed to the implementation of strategic adjustments, price reductions for core products in centralized procurement, and asset impairment losses.
Among the healthcare stocks disclosing performance previews, WuXi AppTec is expected to report the highest net profit at 19.151 billion yuan, which would also set a new record for the company's attributable net profit since its listing. Including WuXi AppTec, a total of 12 stocks forecast a net profit exceeding 10 billion yuan, such as Sansheng, Jilin Aodong, Allist, and Pharmaron.
According to Wind statistics, among the 283 healthcare stocks, based on the upper limit of forecasted net profit, 141 stocks are expected to report a loss in attributable net profit for 2025. Zhifei Biological anticipates the highest loss, exceeding 10 billion yuan. Wind data shows that Zhifei Biological expects its 2025 attributable net profit to be between approximately -10.698 billion and -13.726 billion yuan, a decrease of 630% to 780% compared to the previous year. Zhifei Biological stated that the vaccine industry is undergoing a significant adjustment due to factors like declining public willingness for vaccination and increased vaccine hesitancy, leading to the net loss for the 2025 fiscal year. In fact, vaccine companies generally faced considerable performance pressure in 2025. Wind data indicates that companies like Walvax Biotechnology, Baike Biologics, Jindike, and Conlos expected losses in attributable net profit for 2025.
Regarding the reasons for the widespread performance pressure in the vaccine industry, Deng Yong, Director of the Health Law Research and Innovation Transformation Center at Beijing University of Chinese Medicine, explained that on the demand side, the vaccine market is experiencing a contraction. The penetration rate of non-National Immunization Program vaccines has encountered bottlenecks, and the incremental growth in the core target population is insufficient. On the supply side, there is oversupply and intense price competition. Furthermore, most companies rely on single products or agency businesses, with self-developed pipelines suffering from serious homogeneity and a lack of differentiated core products. High R&D investments and long cycles make it difficult to form new profit growth points in the short term.
It is worth noting that this performance loss for Zhifei Biological would be its first since listing. Wind data shows that among the 283 stocks, 39 healthcare stocks, including Zhifei Biological, are expected to report their first loss since going public. These include Zhenbaodao, Huiyu Pharmaceutical, and Xiangrikui. Specifically, Zhenbaodao's 2025 performance preview indicates an expected attributable net loss ranging from -1.012 billion to -1.173 billion yuan, compared to a profit in the same period last year. Zhenbaodao attributed the loss to delays in the implementation of national centralized procurement for proprietary Chinese medicines, coupled with intensified medical insurance cost control measures, which led to lower-than-expected sales of its main products. Additionally, delayed repayments from some clients resulted in credit impairment losses of approximately 394.68 million yuan, while a decrease in the realizable value of inventory led to asset impairment losses of about 266.48 million yuan. Inquiries regarding related company matters were sent to Zhifei Biological and Zhenbaodao, but no responses were received by the time of publication.
Notably, among the innovative drug companies disclosing performance previews, many reported a turnaround to profitability or significantly reduced losses. InnoCare is expected to achieve its first profit since listing, which means its stock will no longer carry the special identifier "U" after the 2025 annual report is released. InnoCare's 2025 performance preview shows an expected attributable net profit of approximately 633 million yuan, an increase of about 1.074 billion yuan compared to the previous year. RemeGen also achieved a turnaround to profitability. Preliminary calculations by its finance department indicate expected 2025 operating revenue of approximately 3.25 billion yuan, a year-on-year increase of about 89%. The company expects an attributable net profit of about 716 million yuan for 2025, turning a profit compared to the loss in the same period last year.
Both InnoCare and RemeGen cited revenue growth from core products and the impact of business development (BD) as reasons for the turnaround. InnoCare stated that its drug revenue continued to grow rapidly during the reporting period. Additionally, BD revenue growth was another significant factor contributing to the rapid increase in operating revenue for 2025. RemeGen mentioned that its core products, Telitacicept and Disitamab Vedotin, achieved rapid sales growth domestically. Furthermore, the company secured a major collaboration, granting Vor Biopharma Inc. exclusive global development and commercialization rights for Telitacicept outside Greater China, leading to a substantial increase in technology licensing revenue, with some overseas R&D expenses now borne by the licensee.
Although innovative drug companies like MicuRx Pharmaceuticals and Junshi Biosciences have not yet achieved profitability, they have significantly reduced their losses. For example, Junshi Biosciences expects an attributable net loss of approximately -873 million yuan for 2025, a reduction of about 408 million yuan compared to the previous year, representing a 31.85% decrease in losses year-on-year.
In the view of Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, the fact that many innovative drug companies achieved profitability or significantly reduced losses in 2025 reflects the industry's gradual entry into a stage of accelerated R&D成果转化 and commercialization. Innovative drugs from some companies have successively completed clinical trials, gained approval for marketing, and entered the market through medical insurance negotiations, leading to significant sales revenue growth. Additionally, in recent years, accelerated review and approval processes for domestic innovative drugs, dynamic adjustments to the medical insurance catalog, and policy support for "going global" have provided companies with a more predictable market environment. International progress has also become a key factor in profit improvement, with some pharmaceutical companies expanding revenue sources through overseas licensing or direct sales. Companies with differentiated technology, clinical value, and commercialization capabilities are expected to gradually achieve sustainable growth, while those facing homogeneous competition will still encounter pressure.
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