Incident Overview

The company released its report for the third quarter of 2022: the first three quarters achieved revenue of 2,097 million yuan (+9.71%), net profit of 79 million yuan (+608.06%); the third quarter alone achieved operating income of 849 million yuan (+33.75%), after deducting net profit of 28 million yuan (+166.36%); performance improved markedly.

The first phase 3 clinical trial of cyclopofol in the US has reached its end. It is expected that the first phase 3 clinical trial of cyclopofol carried out in the US will reach the end point during the overseas reporting period. The company is actively promoting the second phase 3 clinical trial of cyclopofol in the US. At the same time, the company is also actively promoting the external licensing of cycloprophenol in overseas markets.

TYK2 products receive their first milestone

In the first phase II clinical trial of the TYK2 product, the first patient has taken it for the first time. The transaction party paid the first milestone payment of 37 million US dollars. The company should have been distributed 20.66 million US dollars and received the payment, which is expected to increase the company's total profit in 2022 by 20.66 million US dollars.

Investment advice

Due to the significant improvement in single-quarter performance brought about by the release of cyclopropenol, the company's profit forecast was raised: operating income was adjusted from 29.6/36.2/4.35 billion yuan in 2022-2024 to 30.67/37.35/4.501 billion yuan, and EPS was adjusted from 0.17/0.37/0.54 yuan in 2022-2024 to 0.27/0.47/0.65 yuan, corresponding to the closing price of 22.80 yuan/share on October 26, 2022. PE was 86/49/35 times, respectively, maintaining the company” “Buy” rating.

Risk warning

Domestic and international R&D progress of innovative drugs fell short of expectations, and product volume fell short of expectations