Three products have been approved to go on the market, with great potential for product growth:
In 2021, the company has three products approved to be listed in China, namely bevacizumab injection (Park Xin Ting), temozolomide capsule (teizolomide), and megestrol acetate oral suspension (Mesiya). Among them, Pu Xin Ting is used in the treatment of advanced, metastatic or recurrent non-squamous non-small cell lung cancer and metastatic colorectal cancer, etc.; the generic drug tianweitai, an alkylating agent with antineoplastic activity, can kill cancer cells by destroying DNA, which is more efficient than conventional chemotherapy. Meishiya can effectively improve the cachexia state of AIDS and cancer patients, and it is the first high concentration megestrol acetate oral suspension approved to market in China. Park Xinting will be authorized to Jimin Trust to be responsible for domestic promotion. Signed a marketing cooperation agreement with Frontier Biology to promote Meishiya. Phase Ⅲ clinical trials of ADC drug TAA013 and anti-VEGF monoclonal antibody TAB014 are progressing smoothly.
CDMO business is developing rapidly and has obvious competitive advantages:
The company's CDMO/CMO business achieved revenue of 53.69 million yuan, an increase of 736% over the same period last year, and new orders exceeded 100 million yuan, of which ADC project orders accounted for about 60%, and the number of projects increased about 3 times over 2020. Service items cover all phases of clinical trials from preclinical to all phases of clinical trials. CDMO business is expected to increase 2-3 times this year.
The company has obvious competitive advantages in CDMO business: 1) the company has the technical advantages of core coupling process and amplification, as well as the independent analysis ability of key quality attributes of ADC. Its self-developed HER2 targeting ADC drug TAA013 is currently the fastest clinical progress of T-DM1 ADC drugs in China, and is in the first echelon in the field of ADC in China. 2) flexible production capacity, production line and perfect commercial layout, which enables the company to provide CDMO services of different scales, such as small-scale test, pilot-scale test and commercialization. At present, the company has established an integrated production and commercial workshop of monoclonal antigen solution and preparation, ADC solution and freeze-dried preparation, as well as a quality management system that meets high standards, commercialization ability and compliance that meet GMP standards. 3) actively integrate the advantage resources in the industry, based on the company's advantage commercialization, technology platform and perfect management system.
Once again cover the buy rating, with a target price of HK $6.04
With the approval of the listing of the three products in 2021 and the rapid development of CDMO business, the performance and liquidity will be greatly improved. We estimate that the company's income from 2022 to 2024 will be 330 million yuan, 530 million yuan and 701 million yuan respectively, and the EPS will be-0.13,0.1,0.16 yuan respectively. Based on the cash discount method and EV/ revenue valuation, the target price of the company will be 6.04 Hong Kong dollars. Corresponding to the EV/ income of 7.26 times in 2023, there is 94.8% room for increase compared with the current price, and it is given a "buy" rating.