The performance of 23Q3 has maintained a high growth rate and its operating efficiency has continued to improve. The company released the third quarter report of 2023: (1) in the first three quarters of 2023, the company achieved revenue of 731 million yuan (+ 38.54%, the same increase, the same below), mainly due to the increase in sales of Yisep, Septin, Jennipa and the increase in CDMO orders; the return net profit was 164 million yuan (+ 13826.23%), deducting the non-return net profit of 150 million yuan. (2) from the perspective of Q3 alone, the company achieved revenue of 253 million yuan (+ 35.36%), net profit of 69 million yuan (+ 726.66%), and non-return net profit of 67 million yuan. Benefiting from the company's R & D focus self-immunity, the efficiency of the use of R & D funds has been continuously improved, with a single Q3 R & D investment of 65 million yuan (- 10.43%), accounting for 25.66% of revenue (- 13.12pp). In terms of expenses, the sales and management expenses of single Q3 company are 69 million yuan (+ 17.33%) and 18 million yuan (- 18.04%) respectively, accounting for 27.17% (- 4.18pp) and 6.94% (- 4.52pp) of revenue respectively.
The autoimmune pipeline is promoted efficiently and has definite clinical effect. The company has five kinds of clinical autoimmune products, all of which are among the top three domestic pharmaceutical companies in the research progress. (1) 608 (anti-IL-17A): the indication of moderate and severe plaque psoriasis is in stage Ⅲ, and the clinical data of stage Ⅱ show that PASI and sPGA are effective. (2) 613 (anti-IL-1 β): the indication of acute gouty arthritis entered the clinical Ⅲ phase. The clinical study of Ⅰ b / Ⅱ phase showed that the complete relief of joint pain of this product was better than that of the positive control group of prednisone, and the improvement of VAS score of pain was not inferior to that of the strong long-acting hormone control group. (3) 611 (anti-IL-4R α):
The clinical Ⅱ phase of adult moderate and severe atopic dermatitis has reached the main end point, that is, at the 16th week, the percentage of subjects whose weekly average of EASI 75, IGA 0max 1, EASI 90, EASI 50 and pruritus NRS decreased by 4 points compared with the baseline in each trial group was significantly higher than that in the placebo group, and the difference was statistically significant. In addition, the indication of chronic sinusitis with nasal polyps has entered the Ⅱ phase, and the Ⅱ phase of chronic obstructive emphysema (COPD) has been approved by NMPA. (4) 610 (anti-IL-5): the indication of severe eosinophilic asthma has completed the clinical Ⅱ phase. The clinical data of Ⅰ phase b showed that the 32-week FEV1 (main pulmonary function index) of 100 mg and 300 mg groups improved 340ml and 400ml compared with the baseline, while the placebo group was only 20ml (the same kind of listed product Nucala?180ml), which initially showed a better curative effect than the same kind of listed products. (5) 621 (anti-IL-33): the indications of COPD have been reported in both China and the United States, of which the United States has been approved to enter the clinic, and China has submitted IND and accepted.
Investment suggestion: the company ploughs innovative research and development of antibodies in the field of autoimmunity, with rich target layout, leading the progress of pipeline research and gradually entering the harvest period; the performance of listed products blossoms at many points, the new increment of CDMO contribution performance, and the company has a broad space for growth. We maintain the original profit forecast and forecast that the company's net return profit for 2023-2025 will be 1.25 trillion yuan respectively, representing a growth rate of 153%, 13%, and 29%, respectively. Maintain the "increase-A" proposal.
Risk hints: industry policy risk, new drug research and development risk, uncertainty risk of products under research, less than expected commercialization risk and so on.