Core point of view: (If there are no special comments, the currency of this article is in US dollars)
The company's underlying technical structure is rich, and Legendary Biotech is about to fulfill its growth potential. Kingsley is moving towards diversification based on gene synthesis. Focusing on central rules and deep technology accumulation in the field of gene synthesis, the synergy between the four major business segments is obvious. The life science business is the company's cornerstone business, and at the same time, Legendary Biotech and Booming Biotech are expected to bring even stronger growth engines.
Legendary Creature - Expanded production capacity is waiting to be released, and Sidagio Orense is about to be released. Continuing to promote the global clinical progress of Sidagiolensis, at the ASCO conference, CARTITUDE-4 results showed that clita-cel is expected to provide new treatment options for 2-4 line treatment. Legendary Biotech has submitted applications for expanded indications to EMA and FDA, and is expected to continue to expand the scope of application in the future.
Currently, the main factor limiting cell therapy volume is production capacity. Legendary Biotech is currently actively developing global production capacity, and the continued release of Cilta-Cel is expected to exceed expectations in the future.
The business sector develops collaboratively, and innovation drives continuous growth. (1) Kingsley's life science business, segmenting racetrack leaders, and innovating to help sustainable development. (2) Booming biotechnology, abundant capital reserves, and low pressure on fixed assets, is expected to achieve steady revenue growth in the next three years. (3) Baisjie, based on industrial enzymes, is embarking on a new journey in synthetic biology.
Profit forecasts and investment advice. The company's traditional business is growing steadily. Carvykti's sales volume is highly certain in the next few years, and the company's performance is expected to maintain rapid growth. The company's non-cellular therapy business refers to the industry valuation level segment valuation level and corresponds to a reasonable value of HK$16.362 billion; the cell therapy business refers to Carvykti's subsequent sales DCF and corresponds to a reasonable value of HK$57.8 billion. Overall, the reasonable value of the Hong Kong stock corresponding to Kingsley is about HK$34.96 per share, giving it a “buy” rating.
Risk warning. Registration approval progress/drug sales fall short of expectations, risk of rising costs, etc.