The company released the 2024 three-quarter report. 2024Q3 revenue was 0.319 billion yuan, -2.52% year-on-year, and net profit after deducting non-attributable net profit of 68.39 million yuan, or -17.34% year-on-year. Revenue for the first three quarters of 2024 was 0.977 billion yuan, +6.77% year on year, after deducting non-return net profit of 0.174 billion yuan, or -7.50% year on year.

The clinical data performance is excellent, and we continue to invest heavily in research and development. The BGM0504 injection weight loss and type 2 diabetes treatment achieved the expected goals in the domestic phase II clinical trial. At the 12th week of administration of the target dose for the BGM0504 injection 5 mg, 10 mg, and 15 mg dosage groups, the corresponding weight loss rates for each dose group were 8.4%, 12.0%, and 13.8%, respectively. The weight loss data showed excellent results. From a cost perspective, the sales cost of 2024Q3 was 16.6 million, -0.54% YoY, operating expenses 28.95 million, -7.51% YoY, and R&D expenses 69.62 million, +15.21% YoY. As clinical progress progresses to phase III, R&D continues to invest heavily to effectively guarantee the smooth progress of clinical trials.

Focus on internationalization and comprehensive overseas layout. The international promotion of innovative drugs continues to accelerate. The IND application for BGM0504 injections for weight loss has been approved in the US, and the IND application for hypoglycemic indications for BGM0504 injections has been submitted to Indonesia.

In terms of APIs, the raw drug iribulin mesylate passed the US DMF technical review and was approved in Japan; the raw drug of anifenzin and the raw drug of fondagliptin was approved in India; the raw material for dabavancin hydrochloride was submitted DMF to Canada, the active ingredient for voclosporin and saxagliptin intermediates submitted DMF to the US, and the DMF for sodium sulfonate was submitted to Australia. APIs and innovative drugs go hand in hand, with comprehensive overseas clinical and product marketing layout.

Profit forecast: The company's revenue is growing steadily, while actively developing new fields. Optimistic about the company's long-term development and maintaining a “buy” rating. According to the three-quarter report and subsequent pipeline approval schedule, we expect the company's revenue for 2024-2026 to be 1.345 billion yuan, 1.545 billion yuan, and 1.912 billion yuan, respectively, up 14.0%, 14.9%, and 23.8% year-on-year; net profit to mother will be 0.21 billion yuan, 0.231 billion yuan, and 0.296 billion yuan, respectively, up 3.6%, 10.2%, and 28.3% year-on-year.

Risk warning: Clinical progress falls short of expectations, product sales fall short of expectations, and overseas product progress falls short of expectations.