The Zhitong Finance App learned that CICC released a research report stating that it maintains the “outperforming the industry” rating of CSPC Group (01093), with a target price of HK$9.3. The company announced 1Q24 results: revenue of 8.98 billion yuan, +11.5% year-on-year. Net profit attributable to mother and core net profit were $16.1/1.72 billion respectively, +12.9%/+11.6% YoY. The first quarter results are in line with this forecast. The company maintained its double-digit revenue growth guide for the whole year.

According to the report, looking at the changes in the company's business revenue in 1Q24: nervous system +27%, anti-cancer +12%, anti-infective +10%, cardiovascular +22%, respiratory system -6%, digestive metabolism +60%. The company said that Enbip injections are vigorously expanding the county area; capsules doubled month-on-month in 1Q thanks to the expansion of retail and self-funded markets. The company said that newly marketed varieties and new batch of indicated varieties (including mitoxantrone liposomes, RANKL monoclonal antibodies, irinotecan liposomes, TNK stroke indications, etc.) were successfully admitted and released in the first quarter, and the increase in revenue from the new products was in line with the company's expectations. Management maintains the sales guideline of 3 billion yuan for new products this year, and expects that with the approval of more new drugs, the contribution of new products is expected to double next year. Furthermore, the company also indicated that the recent margins of the innovative drug hospital entry policy are clearly improving.

The bank said it looks forward to the continued fulfillment of the CSPC R&D pipeline. As of May 2024, various products such as PD-1 monoclonal antibody, omalizumab, DBPR108, amphotericin B liposome, and meloxicona crystal injection are in the marketing review stage by the China Drug Administration. The company said that Nectin-4 ADC currently has about 60 people enrolled. Currently, the results are ideal for cervical cancer, urothelial cancer, etc., and may be the focus of promotion in the future. While the clinical dosage of EGFR ADC in China and the US is climbing, the company said it will consider experimenting with third-generation EGFR-TKI for first-line use in non-small cell lung cancer; in combination with PD-1, it will test indications such as head and neck squamous cancer, nasopharyngeal cancer, and lung cancer. In addition, the ilitecan liposome and amphotericin B liposome are in the US marketing review stage. The company expects on-site inspection by the US FDA in 2024, and the company said it may adopt an authorized model for sale in the US market in the future.