The 2025 results were broadly in line with our expectations.
The company announced its 2025 results: revenue of 5.343 billion USD, up 40% year-on-year, with product revenue at 5.282 billion USD, also up 40% year-on-year. GAAP net profit was 0.287 billion USD. Sales revenue met our expectations, while net profit fell slightly short of our forecasts, mainly due to one-time equity investment impairment and non-recurring tax expenses in 4Q25. If we exclude this negative impact, we expect the company's full-year net profit to align with our projections.
Development trend
Zebutinib drove steady growth in product revenue. In 2025, Zebutinib generated $3.9 billion in sales, a year-on-year increase of 49%. Looking at the quarterly breakdown, sales for Q1–Q4 2025 were $790 million/$950 million/$1.04 billion/$1.15 billion, with quarter-over-quarter changes of -4%/20%/10%/10%, primarily benefiting from strong demand growth for Zebutinib and the revenue gains from net pricing. In 2025, Teclistamab's global sales reached $740 million, up 19% year-on-year. GAAP net profit reached $287 million, achieving quarterly profitability for the first time. Overall, the company successfully met its publicly disclosed guidance across key metrics including revenue, gross margin, and expense investment.
The 2026 guidance continues to project strong growth. Full‑year revenue guidance for 2026 is 6.2–6.4 billion USD, representing year‑over‑year growth of 16–20%; GAAP gross margin guidance is at the upper end of the 80% range; GAAP operating expense guidance is 4.7–4.9 billion USD, up 11–16% year over year; and GAAP operating profit is 7–8 billion USD.
The company will benefit from several major catalysts in 2026. The company anticipates: 1) That the Sotoklara R/R MCL indication is expected to receive U.S. approval in H1 2026; 2) Based on Phase II clinical data, BTK CDAC may submit a request for potential accelerated approval for the R/R CLL indication in H2 2026; 3) Phase III clinical trials of CDK4 for first‑line breast cancer will commence in H1 2026, with Phase I data to be disclosed in H1 2026; 4) B7-H4 ADC will initiate Phase III trials within 12 months, and Phase I data will be released in H1 2026; 5) The GPC3/4-1BB bispecific antibody will enter pivotal Phase II trials in H2 2026, with Phase I data to be disclosed in H1 2026.
Profit Forecast and Valuation
Taking into account domestic medical insurance price adjustments and the company's cost control efforts, we have lowered our 2026 revenue forecast by 2.7%, but we are maintaining our profit forecast of USD 0.61 billion and introducing a 2027 profit forecast of USD 0.87 billion. We are maintaining our "Outperform" rating for the industry; based on the DCF model, we are maintaining our target prices of RMB 320 / HKD 250 / USD 420 for A/H/US shares (upside potential of 36.2%/40.1%/41.4%).
Risk
Product sales fell short of expectations; data from the pipeline under development also failed to meet expectations.
