The company's performance declined briefly due to the industry environment:

The company's consolidated revenue for mid-year 24 was HK$0.812 billion, down 9.8% from the same period last year. The ophthalmology industry decreased by 1.6% compared to the same period last year; the surgical business decreased by 15.8% compared to the same period last year. The company's profit for the period was HK$0.157 billion, down 7.3% from the same period last year. The main reason is the unfavorable market environment due to the tightening of regulatory policies in the medical industry.

skQ1 has obtained exclusive global rights, and will enter the third phase of the trial company to obtain exclusive global rights in sKq1 eye drops from Mitotech. Currently, phase III clinical trials of sKq1 are being conducted in the US. Compared with placebo through VISTA-1 and VISTA-2, skQ1 has excellent drug safety and tolerability. We are currently in the final stages of completing the transfer of chemistry, manufacturing and control (CMC), know-how and intellectual property rights related to SkQ1. Once completed, phase III clinical trials in the US and around the world will be restarted immediately. The number of patients with moderate to severe dry eye disease in China is about 0.089 billion. Currently, there are no drugs with accurate curative effects, and SkQ1 products have great potential. In the field of dry eye, the company has products such as SkQ1, azithromycin eye drops, beifusu, sodium hyaluronate, etc., which can treat different dry eye indications, and will have great market competitiveness in the dry eye market.

Development of bevacizumab accelerates

HLX04-O (bevacizumab) has been undergoing phase III clinical trials in the US, the European Union, China, and Australia, and the first patient administration has been completed in China, Latvia, Australia, and the US.

Applications for new drugs are expected to be submitted in 2025. Currently, there are no wet AMD indications for bevacizumab products marketed worldwide. The number of Chinese patients with 4 indications, including wet AMD and diabetic macular edema, reached 15.8 million, and the market space is broad.

Once again covered to give a buy rating, the target price is HK$5.12

The company's performance declined for a short time. As innovative drugs such as bevacizumab advance smoothly in the future, the company's performance is expected to rise. Revenue is expected to be HK$1.682 billion, 1.823 billion, and HK$1.982 billion respectively, and EPS of HK$0.47, 0.50, and 0.54, respectively. We gave the company a target price of HK$5.12, corresponding 10.4 times PE in 2023. There is room for a 73% increase compared to the current price, and maintain the 'buy' rating.