Laying out a globally differentiated pipeline, development ushered in an important inflection point. Established in 2014, Zaiding Pharmaceutical is committed to becoming the world's leading biopharmaceutical company. The company has built a globally differentiated product pipeline through “independent research and development+external cooperation”. With the rapid expansion of product sales, the company continues to improve commercialization and R&D efficiency, and net losses continue to decrease. According to the company's 2024 mid-year report, the company strives to achieve corporate profits by the end of 2025, and the company's development ushered in an important inflection point.

Commercial sales are rapidly increasing, and the core major varieties have entered the harvest period. Since 2018, as various products such as Zele, Aipudun, and Wei Weijia have been approved in China, the company's commercial sales have grown strongly, and product sales revenue in the first three quarters of 2024 reached 0.289 billion US dollars (yoy +44%).

As agamod continues to be released, core major products such as karXT, Bemarituzumab, and tumor electric field therapy (new indications) are expected to contribute to an increase after launch. According to the company's presentation materials in November 2024, the company's revenue CAGR from 2023 to 2028 is expected to reach about 50%.

The global equity pipeline shows therapeutic potential, and the company's R&D has entered a new stage of globalization. According to the company's presentation materials, the company already has 3 global equity pipelines in the clinical phase. The ZL-1310 is a new DLL3 ADC. The company released its global Phase Ia data in October '24, which initially demonstrated the best potential of its kind in the world. The company is accelerating the development of the global equity pipeline. ZL-1102 (IL-17A) is currently in the global phase II phase, ZL-1218 (CCR8) is in phase I, and ROR1 ADC and IL-13/IL-31 antibodies are about to enter the clinical phase.

Profit forecasting and investment advice. The company's core products have been approved and listed one after another, which is expected to help the rapid release of product sales. The global equity pipeline shows therapeutic potential in the clinical stage to drive the company's development into a new stage. We are optimistic that the company's commercialization and innovative research and development will continue to improve. We expect the company to achieve revenue of US$387, 5.61 and US$856 million in 24-26, respectively. Using the risk-adjusted DCF method, the company obtained a reasonable value of HK$33.70 per share, covered for the first time, and gave it a “buy” rating.

Risk warning. There is a risk of failure in the development of new drugs, the risk that sales volume of innovative drugs falls short of expectations, the commissioning of production facilities falls short of expectations, and the progress of global innovation falls short of expectations.