On August 8, 2024, the company announced the main financial data for the 2024 semi-year: 2024H1 revenue of 11.996 billion yuan, +65.4% year-on-year; net loss to mother of 2.877 billion yuan, narrowing year-on-year.
Adjusted operating profit for the second quarter was 0.345 billion yuan. The increase in revenue and the narrowing of losses in the first half of the year were mainly due to the increase in sales of the company's core products and the improvement of operating efficiency through expense management.
The volume of core products is strong. According to the company's 2024.8.8 announcement, Baiyueze: 2024H1 sold 8.018 billion yuan globally, +122% year over year, of which the US sold 5.903 billion yuan, +134.4% year over year. Baiyueze has been approved for 6 indications domestically, 5 of which are covered by national health insurance; overseas, multiple indications have been approved in more than 70 markets. R/R FL has been approved by the FDA, the European Union, and Canada. It is also the most widely used BTK inhibitor in the US, EU, and China. Baizean: It has been approved for 13 indications in China, 11 of which are covered by national health insurance; overseas, it has been approved for second-line ESCC treatment in the US, EU, UK, and Australia, and first-line NSCLC has been approved in the EU and Australia. The FDA is reviewing its marketing applications for first-line ESCC and first-line G/GEJ adenocarcinoma.
Many new drugs are worth looking forward to. According to the company's 2024.8.8 announcement, Sonrotoclax: has promoted 1L CLL Global Phase III, Potential Global Registration Phase II for WM and MCL, and Domestic Potential Registration Phase II for R/R CLL/SLL. BGB-16673: Two global expansion cohort studies, R/R CLL and R/R MCL, are being enrolled. Zenidazumab: 2L BTC domestic BLA has been accepted.
The company promoted 5 new molecules into clinical practice in 2024, including B7H3 ADC, IL-15 precursor drugs, CDK2 inhibitors, B7H4 ADC, and IRAK4 CDAC.
Profit forecasting and investment advice. The company's revenue for 2024-2026 is estimated at 25.2/31.4/37.1 billion yuan. Using DCF valuation, a reasonable value of 180.24 yuan/share was obtained, corresponding to a reasonable value of HK$200.27 per share for H shares (reference exchange rate 0.9), maintaining a “buy” rating.
Risk warning. Risk of clinical failure, review and approval progress falling short of expectations, sales falling short of expectations, etc.