Benefiting from improvements in the cell therapy business, Kingsley's gross margin increased from 45% in the first half of 2023 to 52% in the second half of the year.
The Zhitong Finance App learned that Daiwa released a research report saying that according to the “buy” rating for Kingsley Biotech (01548), losses narrowed in the second half of fiscal year 2023, from 94 million US dollars in the first half of last year to 2 million US dollars in the second half of 2023. This is too large and the expected loss of 135 million US dollars is mainly due to improved gross margin and non-core business factors. The company recorded revenue of US$840 million for the year ended 2023, an increase of 34.2% over the previous year. The loss narrowed from US$227 million in the previous year to US$95.48 million, or US$4.53 per share.
According to the report, in the second half of fiscal year 2023, Kingsley Biotech's revenue rose 42% year on year to US$448 million, in line with the bank's estimate of US$442 million, with revenue of US$273 million in the second half of the year, up 4.6% year on year. Compared with the 13.8% year-on-year increase in the first half of 2023, the increase was dragged down by 30% year-on-year in the probiotic business to US$42 million during the period, but the cell therapy business (such as biotechnology and its subsidiary Baisjie business rose 15% year on year to US$206 million and US$25 million).
The bank pointed out that thanks to improvements in the cell therapy business, Kingsley's gross margin increased from 45% in the first half of 2023 to 52% in the second half of the year. In the second half of 2023, sales, management and R&D expenses increased by 14%, 4%, and 6%, respectively, to US$93 million, US$107 million and US$225 million, respectively. Other revenue and earnings for Kingsley were $58 million ($15 million in the second half of 2022). Fair value earnings from preferred shares and warrants of $78 million ($65 million in the second half of 2022).