Maintain an “Overweight” rating. Taking into account changes in the hospital sales environment, the 2024/2025 revenue forecast was adjusted to 766/ 1,454 million yuan (originally 936/1,702 million yuan), and the 2026 revenue forecast was added to the 2026 revenue forecast of $2,388 million. Maintain the target price of 60.39 yuan/share (corresponding to PS7.9X in 2024) and maintain the “overholding” rating.

Revenue continues to grow, and operational efficiency has improved markedly. In 2023, the company achieved revenue of 386 million yuan, +27.83% year over year, a significant increase, driven by donafenib; 2024Q1 achieved revenue of 108 million yuan, +0.12% year over year and +3.75% month on month, and resumed the year-on-year growth trend. In 2022, 2023, 2024Q1's sales expense ratios were 75.32%, 64.82%, and 55.53%, respectively, showing a rapid downward trend, and operational efficiency continued to improve. In 2023, 2024Q1 had net losses of 279 million yuan and 39 million yuan respectively. The loss amounts narrowed year-on-year to 179 million yuan and 18 million yuan, showing a continuous trend of loss reduction.

The research pipeline is progressing steadily, and major new products are entering the harvest period one after another. The company's core product, recombinant human thrombin, was newly approved for marketing in January 2024. It has the characteristics of high purity and high hemostatic activity, and is expected to lead clinical drug iterations; the JAK inhibitor jacketinib is currently in the marketing review stage, and we expect it to be approved for myelofibrosis in 2024. Many subsequent autoimmune disease indications are in phase III clinical phase. We expect alopecia areata and atopic dermatitis to be read in 2024H1 and 2024H2 respectively. In addition, the company's early R&D pipeline is abundant, and 2024 is expected to usher in major data disclosures such as ZG006 (CD3/DLL3).

catalysts. The commercialization volume exceeded expectations; the curative effects of the products under development exceeded expectations; did the R&D progress exceed expectations? Risk warning. Clinical trial progress falls short of expectations; risk of failure in drug development; risk of falling short of expectations in marketing and sales