We believe that the implementation of the company's many catalysts is expected to drive a continuous increase in its market value in 2025. Among them:

1) BL-B01D1: Expected to expand to the frontline and globally in 2025. Up to now, 01D1 has disclosed early clinical data on end-of-line cancer types such as NSCLC, SCLC, BC, NPC, ESCC, BTC, and UC in China, all showing the potential to become a new generation of cornerstone drugs. In 2025, 01D1 is expected to expand this competitiveness to the world: BMS will take the opportunity to release phased data for the 01D1 global phase I clinical trial, and plans to open the first global registered clinical trial within 2025. Based on this, we raised 01D1's success rate for end-line oncology applications from 25-30% to 50-70%; on the other hand, 01D1 is expected to expand to the front line: its phase II clinical phase II clinical data for EGFRM NSCLC frontline in China may be read out at the 2025 ASCO conference, and BMS also initiated global clinical trials for related indications this year, and clinical results may be disclosed in 2026. Given that the sales volume of the comparable competitor osimitinib for EGFRM NSCLC first-line indications worldwide can reach 3-4 billion dollars, we think the reading of 01D1 data next year is expected to greatly increase its peak expectations.

2) BL-M11D1: Full data is expected to be disclosed in 2025, and we are optimistic about its potential for external licensing. The company disclosed some of the CD33 ADC BL-M11D1 phase I clinical results in 2024 ASH, showing excellent efficacy and good safety. We expect the full results may be read in 2H25. We believe BL-M11D1 is expected to reach a potential sales peak of 1.5-2 billion US dollars worldwide.

Profit forecasting and valuation. We expect the company to achieve net profit of 4.089/0.066/-0.414 billion yuan in 2024-2026, corresponding EPS of 10.20/0.17/ -1.03 yuan, respectively. Due to the increase in our overall POS and peak expectations for BL-B01D1 and sales expectations for the addition of BL-M11D1, using the DCF valuation method, we raised the reasonable value to the range of 244.13 to 299.40 yuan, giving it a “superior to the market” rating when taking WACC in the 6.89% to 7.29% range using the DCF valuation method.

Risk warning: Drug research and development progress falls short of expected risk, drug sales fall short of expected risk, competition increases risk, policy risk;