Donghai Research | Treasures Biotech (688278): Core products continue to expand sales, with innovation and R&D accelerating progress

(Source: Donghai Research)

Securities Analyst:

Du Yonghong, Practitioner Certificate No.: S0630522040001

Fu Ting, Practitioner Certificate No.: S0630525070003

Email: futing@longone.com.cn

// Report Summary //

The company’s performance meets expectations. In 2025, the company achieved operating revenue of RMB 3.696 billion (YoY +31.18%), net profit attributable to shareholders of RMB 1.031 billion (YoY +24.61%), and net profit attributable to shareholders after deducting non-recurring items of RMB 1.062 billion (YoY +28.44%). Of this, in Q4 alone, revenue was RMB 1.216 billion (YoY +40.99%), net profit attributable to shareholders was RMB 365 million (YoY +33.52%), and net profit after deducting non-recurring items was RMB 389 million (YoY +57.98%). In 2025, the company’s gross margin for sales was 92.96% (YoY -0.53 pp), and its net profit margin for sales was 27.90% (YoY -1.48 pp). Overall, the company’s performance generally meets expectations.

Peigebin maintains rapid growth as the company continues to deepen its focus on the hepatitis B field. In October 2025, an additional indication for adult patients with chronic hepatitis B with sustained clearance of HBsAg was approved for the Peigebin nucleoside (acid) analogue in combination, enabling an approximately 30% clinical cure rate. Peigebin is the first approved drug in the world targeting clinical cure, further consolidating the cornerstone position of long-acting interferon in functional cure for hepatitis B. With the widespread application of Peigebin in hepatitis B clinical cure research and practice, product sales continue to scale up. In 2025, revenue reached RMB 3.091 billion, up 26.34% year over year. In the hepatitis B sector, the company is accelerating innovative drug R&D in the chronic hepatitis B area and exploring combination use of different drugs. The company is focusing on innovative drug projects such as ACT201 (ASO), ACT560 (ALPK1 agonist), ACT400 (mRNA therapeutic vaccine), among others. ACT201 targets the viral life cycle; preclinical data are excellent, and the company expects to submit an IND application in 2026 Q2. The company is actively exploring combination therapy of ACT201 and Peigebin, aiming to further reduce suppression of the body’s immune system during treatment of HBV infection. This is expected to play an important role in achieving higher clinical cure rates and shorter treatment cycles.

Long-acting growth hormone (Yipēishēng) is included in medical insurance, accelerating commercialization. In May 2025, the company’s long-acting recombinant human growth hormone Yipēishēng was approved for listing. In December, it was included in the latest National Reimbursement Drug List (NRDL) for treating growth hormone deficiency-related growth retardation in children aged 3 and above. It is the second long-acting product上市 in China’s hundred-billion-yuan recombinant human growth hormone market. Yipēishēng uses a globally original Y-shaped polyethylene glycol long-acting modification technology. With advantages including low dosage, no preservatives, an intelligent injection device, and a low rate of antibody development, it is accelerating commercialization in the pediatric growth and development field. In 2025, revenue in the company’s endocrinology segment was RMB 256 million, and in 2026 it is expected to contribute a significant incremental amount.

The company continues to build innovative technology platforms and accelerates innovative R&D. The company continuously expands core platform technologies such as nucleic acid drug modification and screening, and development of innovative drug delivery carriers. Focusing on the immunology and metabolism fields, the company conducts in-depth development of platform technologies related to mRNA, gene therapy, small nucleic acid drugs, antibody drugs, and others. In addition to R&D on the main innovative drugs ACT201, ACT400, ACT560 in the chronic hepatitis B area, the company also focuses on advancing Peigebin and Yipēishēng for indication expansion, as well as R&D of innovative drugs in the immunology and metabolism fields such as ACT100 and ACT500. In January 2026, the company released a plan for a convertible bond issue of RMB 1.53 billion, investing heavily in new drug R&D projects; the progress of innovative drug R&D is expected to accelerate.

Investment Recommendation: Considering factors including increased promotion and distribution expenses for newly launched products and adjustments to the VAT rate, we appropriately lower our profitability forecasts for 2026–2027, add a 2028 profitability forecast, and expect the company to achieve revenue of RMB 4.824/6.096/7.425 billion in 2026–2028 (the original forecasts for 2026–2027 were RMB 4.960/6.364 billion), and net profit attributable to shareholders of RMB 1.348/1.738/2.164 billion (the original forecasts for 2026–2027 were RMB 1.457/1.884 billion). The corresponding EPS is 3.30/4.26/5.30, and the corresponding PE is 19.62/15.22/12.23 times. As the company’s core product Peigebin continues to grow, Yipēishēng is expected to scale up after being included in medical insurance, and innovative R&D is being accelerated. We maintain a “Buy” rating.

Risk Warning: Risks that sales scale-up of newly launched products may fall short of expectations; risks of intensifying market competition; risks that R&D progress may fall short of expectations; uncertainties such as risks including drug price cuts due to tax rate adjustments, etc.

// Report Information //

Securities Research Report: “T&BA Bio (688278): Continued Scaling-Up of Core Products and Accelerated Innovative R&D — Company Briefing Report”

External Publication Date: 2026-03-31

Report Issued by: Donghai Securities Co., Ltd.

// Disclaimer //

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