Incident: Recently, the company released its 2024 three-quarter report. In Q3 2024, the company's total revenue was 0.143 billion yuan, up 130.67% year-on-year, after deducting non-return net profit of -32.1856 million yuan.

The ZG006 data is excellent. According to the data, injectable ZG006 (hereinafter referred to as “ZG006”) showed good tolerability, safety and excellent anti-tumor efficacy in phase I dose escalation and expansion studies. In particular, patients with advanced small cell lung cancer received significant efficacy after receiving ZG006 doses of 10 mg or more. Based on data up to August 8, 2024, the objective response rate (ORR) reached 66.7%, and the disease control rate (DCR) reached 88.9%.

Clinical research on new drugs has achieved many milestones. In June 2024, the main phase III clinical trial of gikaxitinib tablets to treat severe alopecia areata reached the main efficacy end point, and the safety and tolerability were good. At the same time, the company released clinical research data and latest developments on ZG005 and ZGGS18 at the 2024 ASCO annual meeting. The company also has several products approved for clinical trials, including the approval of gikaxitinib tablets and gikaxitinib cream to conduct phase II/III clinical trials for the treatment of non-segmental vitiligo patients aged 12 years and above, clinical trials of injectable ZG005 in combination with injectable ZGGS18 for advanced solid tumors, and clinical trials of injectable ZG005 in combination with bevacizumab for advanced hepatocellular carcinoma.

Investment advice: Zejing Pharmaceutical is an innovative pharmaceutical company focusing on various treatment fields such as tumors, hemorrhagic and hematologic diseases, immunoinflammatory diseases, and hepatobiliary diseases. We expect the company to achieve revenue of 0.6/1.124/1.799 billion in 2024-2026, maintaining an “gain” rating.

Risk warning: risk of changes in industry policies, risk of new drug development, risk of uncertain marketing of products under development, risk of poor progress in internationalization, risk of market competition, etc.