Haitong International has released a report stating that in the first half of the year, Innovent Bio (01801.HK) had a total revenue of 3.95 billion RMB (the same below), a year-on-year increase of 46.3%, with product revenue of 3.81 billion RMB, a year-on-year increase of 55.1%. The company incurred a loss of 390 million RMB during the period, compared to a loss of 140 million RMB in the same period last year.

According to the report, Innovent Bio's revenue in the first half of the year grew strongly, with product revenue of 3.81 billion RMB, a year-on-year increase of 55.1%. The bank believes that the rapid growth in product revenue is mainly due to the outstanding sales performance of the drugs Daboshu and three similar biologics, as well as the rapid increase in sales of new products such as Xiranze and Ruituo, which have added momentum to revenue growth. The bank believes that with the continuous enrichment of the company's commercial product portfolio and the improvement of marketing output, the company is expected to achieve its goal of turning adjusted EBITDA losses into profits by 2025.

Haitong International points out that combined with the company's strong revenue growth in the first half of the year, the forecasted total revenue for 2024 to 2026 is 7.86/10.25/13.39 billion RMB, compared to the original forecast of 7.33/9.65/12.06 billion RMB. The bank expects the company to turn losses into profits in 2026, achieving a net profit of 760 million RMB. The target price has been raised from 59.9 RMB to 67.8 RMB, maintaining a "outperform" rating.