Event: The company's total revenue for 2024H1 was $0.31 billion, in line with our expectations. Among them, the comprehensive revenue from the oncology business was 0.169 billion US dollars, and the revenue from other businesses was 0.137 billion US dollars. Sales of the main commercial products 2024H1 are as follows: furoquintinib overseas sales of $0.131 billion (+52% month-on-month); domestic sales of furoquintinib $0.061 billion (+13% YoY); surufatinib 0.025 billion dollars (+17% YoY); and savotinib 0.026 billion dollars (+22% YoY). Comprehensive oncology/immunology revenue guidance for 2024 remained unchanged at $0.3-0.4 billion (+30-50% year over year). 2024H1 R&D expenses were 0.095 billion US dollars (-34% YoY), sales and administrative expenses were 0.058 billion US dollars (-15% YoY), and about 0.8 billion US dollars in cash and equivalents, with abundant cash flow.

Fruquintinib continues to be released overseas, and it is expected that new indications will be approved domestically. Fruquintinib is the first and only small-molecule targeted drug against 3-line mCRC approved in the US in 10 years, and has been included in the NCCN guidelines. Europe and Japan are expected to be approved for listing this year. Sales continued to grow. 2024Q1 and Q2 sales were approximately $54.2 million and Q2 = $76.8 million, respectively, and maintained good quarter-on-quarter growth. Fruquintinib combined with chemotherapy is being approved for second-line gastric cancer and is expected to be approved for domestic marketing this year.

Sevotinib is expected to be listed in the US this year to address NSCLC clinical pain points of EGFR TKI resistance. A total of 7 registered clinical trials of sevotinib are underway worldwide: the domestic EGFR TKI refractory NSCLC (SACHI study) to treat second-line MET-amplified refractory NSCLC (SACHI study) is expected to complete patient enrollment in 2024H2; domestic registration for third-line gastric cancer with MET amplification is in phase II clinical enrollment. The single drug has best-in-class potential for 2-line EGFRM+ MET-driven NSCLC, and is expected to be listed in the US before the end of 2024.

Overseas clinical trials of solepinib, potentially the best-in-class Syk inhibitor, are about to begin. The number of ITP patients in China is expected to exceed 0.3 million in 2027. 67% of patients will enter second-line treatment, innovative treatments are limited, and the competition pattern is good. It is expected to be marketed domestically by the end of the year for second-line ITP indications. The US is about to begin enrolling clinical phase IB/II clinical patients, and future BD is expected.

Profit forecast and investment rating: We maintain total revenue of USD 0.665/0.808 billion for 2024-2025, and we expect total revenue of USD 0.969 billion for 2026. Profitability is expected in 2025.

The company's catalysts continued to be realized, overseas markets opened up, growth certainty was high, and the “buy” rating was maintained.

Risk warning: Product registration approval progress falls short of expectations; competition intensifies; commercialization falls short of expectations.