The company released the 2023 annual report and the 2024 quarterly report: total revenue in 2023 was 1,083 billion yuan, up 40.26% year on year; net profit to mother - 1,511 billion yuan. The increase in revenue was mainly due to an increase in sales revenue of injectable tetracip and injectable viducitumab; the increase in losses was mainly due to the continuous advancement of R&D pipelines, the sharp increase in R&D expenses, and an increase in commercial sales investment team building costs and academic promotion activities. 2024Q1 revenue was 330 million yuan, +96.41% year-on-year, and net profit to mother - 349 million yuan.
The marketing network continues to expand, and market access is being promoted efficiently. According to the company's 2023 annual report, as of December 31, 2023, the company has formed commercial teams of nearly 750 autoimmune patients and nearly 600 people respectively, and has been admitted to more than 800 and 650 hospitals respectively. The dosage of verdicitumab was added to treat locally advanced or metastatic UC with HER2 expression and continued after inclusion in the national medical insurance catalogue.
Research and development continues, and many registered clinical trials are progressing smoothly. The company continues to increase investment in innovative drug research and development, and is progressing smoothly in the research pipeline. According to the company's official website, Taitacip: ① SLE: officially obtained CDE conditional marketing approval to regular marketing approval, and overseas clinical trials are also in phase III registration; ② RA:
Domestic phase III clinical results have been positive, and the new drug marketing application has been accepted by the CDE; ③ MG:
Domestic phase III; US phase III IND approved; ④ PSS and IgA nephropathy are enrolled in Phase III clinical trials in China. RC48: Actively advance RC48's potential for frontline treatment, such as first-line or perioperative treatment in UC and GC with PD-1 monoclonal antibodies and chemotherapy, and new adjuvant therapies in BC. RC28: Treating DME and AMD are both in phase III in China. The company has also incubated various novel drugs such as mesothelin ADC, c-Met ADC, and IL-15/IL-15Rα fusion protein.
Profit forecasting and investment advice. The company's revenue for 2024-2026 is estimated to be $1,557 billion, $2,476 billion, and $4.416 billion respectively. Using the risk-adjusted DCF valuation method, the reasonable value of the company's A shares is about 72.75 yuan/share. Referring to the current AH share premium, the reasonable value of H shares is approximately HK$41.83 per share, and A/H shares are given a “buy” rating respectively.
Risk warning. Risk of R&D failure, product sales falling short of expectations, market competition exceeding expectations, etc.