Event: The company released its 2023 three-quarter report. In the first three quarters, the company achieved operating income of 769 million yuan, an increase of 35.08% over the previous year; realized net profit of 1,031 million yuan; and realized net profit from non-return of net profit of 1,060 million yuan. Among them, Q3 in 2023 achieved operating income of 347 million yuan in a single quarter, an increase of 58.28% over the previous year; realized net profit of 327 million yuan; and realized net profit after deducting non-return mother's net profit of 333 million yuan.
Many clinical trials of tetaxip at home and abroad are progressing smoothly, and future overseas markets are worth looking forward to.
In China, systemic lupus erythematosus (SLE) has been approved for listing, rheumatoid arthritis (RA) is in the marketing application stage, and phase 3 clinical trials for indications such as myasthenia gravis (MG), primary dryness syndrome (PSS), immunoglobulin A nephropathy (IgA nephropathy), and optic neuromyelitis spectrum disease (NMOSD) are ongoing. Overseas, phase 3 clinical trials of systemic lupus erythematosus (SLE) are progressing smoothly, and phase 3 clinical trials of myasthenia gravis (MG), primary dryness syndrome (PSS), and immunoglobulin A nephropathy (IgA nephropathy) have been approved by the FDA.
The overseas market in the field of autoimmune diseases is huge, and it is worth looking forward to the future expansion of tamecip in overseas markets.
Overseas UC phase 3 clinical trials of vidicetumab have been initiated, and progress has been made in several domestic indications. At present, our overseas partner Seagen has initiated a phase 3 clinical trial for first-line treatment of HER2-positive urothelial carcinoma with vidicetumab combined with pabolizumab. Future related clinical progress is worth paying attention to. In China, in addition to the back line of urothelial cancer and the back line of gastric cancer that have already been approved for marketing, a number of phase 3 clinical trials are currently being carried out, such as first-line urothelial cancer of urothelial carcinoma, combined with treprilizumab, combined PD-1 and chemotherapy or combined PD-1 and Herceptin for gastric cancer, and breast cancer with low HER2 expression. It is expected that the product coverage will be further expanded after marketing in the future.
Many other innovative drugs continue to advance, continuously enriching the company's later product pipeline. Currently, RC28 is progressing the fastest among the company's other innovative drugs. Currently, the indications for wet senile macular degeneration (WaMD) and diabetic macular edema (DME) are in phase 3 clinical stage; in addition, phase 1 and 2 clinical trials of MSLN ADC RC88, c-Met ADC RC108, and Claudin 18.2ADC RC118 are progressing smoothly in the ADC pipeline. In earlier pipelines, clinical development of the dual antibody RC148, IL-15/IL-15Rα Fc fusion protein RC198, etc. is also being accelerated, and it is expected that the later product pipeline will be further enriched in the future.
Investment suggestions: We expect the company's revenue from 2023 to 2025 to be 1.25 billion yuan, 2.08 billion yuan, and 3.03 billion yuan respectively, and net profit of -1.36 billion yuan, -990 million yuan, and -360 million yuan respectively. Considering the company's potential for marketed/upcoming products and rich clinical research and development pipelines, we believe that the company's future development prospects are promising. According to the DCF model, we have given a target price of 76.61 yuan for 6 months, and a -A grade investment rating for the first time.
Risk warning: Risk of clinical trials of innovative drugs falling short of expectations, risk of clinical trial failure, risk of change in pharmaceutical policy, risk of product sales falling short of expectations.