Incident: Recently announced that it plans to use its own capital market of no more than RMB 1 billion to repurchase shares using its own capital market for the first time since listing. The incentives include middle and senior managers and professionals at the same level; between June 5 and June 20, the company has repurchased approximately HK$95 million for subsequent share incentive plans. In terms of pipelines, since the end of April, 3 Class 1 innovative drugs have been approved, namely iFengke (ALK inhibitor, trade name: anluoqing) and bemosubimab (PD-L1 monoclonal antibody), trade name:
(Andelweg), Annectinib (ROS1 targeted drug, trade name: Ambernil), the Group continues to enrich its innovative product layout in the field of lung cancer. On June 25, the official website of the State Drug Administration announced that Chia Tai Tianqing Lilaglutide biosimilar was approved.
Investment in research and development has been increased, and the pipeline of new drugs continues to advance. Since the company's innovation and transformation, it has increased R&D capital. In 2023, R&D expenditure was about RMB 4.7 billion (accounting for 18.0% of revenue), accounting for more than 77% of R&D investment in innovative drugs and biopharmaceuticals. In 2023, the company's innovative product revenue was 9.89 billion yuan, accounting for 37.8%; the company has entered a period of intensive harvesting of innovative achievements. It is expected to launch more than 10 innovative products in the next three years, and more than 30 innovative products under development may be listed in 2030 or before 2030.
Consolidate the advantages in the four major treatment fields, and equity incentives show confidence. Three commercial distribution companies were sold in '23, and 67% of Chia Tai Qingdao's shares were sold in February '24 to further focus on the four major treatment areas of oncology, liver disease, surgical analgesia, and respiratory treatment. Accelerated international cooperation. On April 8, the company announced the establishment of a strategic cooperation with BI to jointly develop multiple clinical-stage assets including brigimadlin, zongertinib, and BI764532.
Profit forecast and rating: Considering the proceeds from the sale of Chia Tai Qingdao shares, the company is expected to achieve revenue of 303.39/334.73/37.021 billion yuan in 2024-2026, up 15.8%/10.3%/10.6% year on year, and achieve net profit of 37.84/33.10/38.17 billion yuan, up 62.3%/-12.5%/15.3% year on year. Maintain a “buy” rating.
Risk warning: commercialization progress falls short of expectations, risk of clinical trial failure, risk of regulatory policy