Core views:

Leading domestic enterprises, innovative pipelines drive medium- to long-term development. Established in 2015, Zhixiang Jintai is an innovation-driven biopharmaceutical company. The company focuses on the three major treatment fields of self-immunity, infectious diseases and tumors, lays out potential targets such as IL-17A, IL-4R, TSLP, and CD3xBCMA, and innovates pipelines to drive the company's medium- to long-term development.

Celizumab: The first IL-17 monoclonal antibody approved for marketing in China. The dosage can be expected. According to the company's official website, Celizumab is the first domestically produced IL-17 monoclonal antibody independently developed by the company to be approved for marketing. The first indication for moderate to severe plaque psoriasis was approved for marketing in August '24, and the first-mover advantage is obvious.

IL-17A inhibitors are located further downstream in the signaling pathway and have faster time-to-action and better treatment results. The release of scuchiumab has verified the market space for IL-17A targets in psoriasis. We expect the peak sales value of selicizumab to reach 2 billion yuan, and the dosage can be expected.

GR1802: IL-4R is a major potential target for allergic diseases, and there is a broad range of indications.

GR1802 is a monoclonal antibody targeting IL-4R. According to the company's official website, indications for treating moderate to severe atopic dermatitis in adults are currently in phase III clinical stage; in addition, the development of indications such as asthma, spontaneous urticaria, and sinusitis with nasal polyps is progressing ahead. The domestic IL-4R competition pattern is good, and there is broad scope for application. We expect the peak sales value of GR1802 to exceed 1.7 billion yuan.

The technology platform was initially verified, and various monoclonal antibodies and dual antibodies provided long-term development momentum. According to the company's 2024 mid-year report, the company has 15 products under development. Among them, GR1603 is the first domestically produced anti-IFNAR1 monoclonal antibody to enter phase II clinical trials, GR1801 is the first domestically produced anti-rabies virus G protein dual antibody, and GR2002 is the world's first TSLP double epitope antibody approved for clinical trials. The company has extensive reserves in the research pipeline.

Profit forecasting and investment advice. We expect the company's 24-26 revenue to be 0.056, 0.191, and 0.501 billion yuan, respectively, and EPS of -2.28, -2.05, and -1.47 yuan/share, respectively. We are optimistic about the commercialization volume of the company's first product and the continuation of the subsequent innovation pipeline. Using the risk-adjusted DCF method, we obtained the company's reasonable value of 38.09 yuan/share, giving it a “buy” rating for the first time.

Risk warning. Risk of R&D failure; risk of sales falling short of expectations; risk of drug price reduction.