Key points of investment
The company has a rich product portfolio and strong R&D strength:
The company focuses on the development and commercialization of innovative oncology drugs and therapeutics. It has a comprehensive oncology drug portfolio under development for various types of cancer, including monoclonal antibodies, ADCs, oncolytic virus drugs, and special oncological drugs (such as liposomal drugs), covering various fields of biopharmaceuticals, ADCs, and chemical drugs. The company has a rich pipeline, including 7 types of biopharmaceuticals and 5 types of chemical pharmaceuticals, 11 of which are developed in-house. In the field of biopharmaceuticals, the company has submitted a marketing application for 1 biopharmaceutical TAB008 (VEGF monoclonal antibody), which has been accepted by the China Drug Administration. It is expected that it will be approved for listing in the first half of 2021; 3 products under development are in the clinical stage. Among them, the ADC product TAA013 has completed the first clinical phase III administration. In the field of chemical pharmaceuticals, 1) Three generic drugs, the company has submitted an ANDA application for 1 product, TOZ309, and the two small molecule drugs TOM312 and TIC318 are conducting CMC and BE studies; 2) the two liposomal chemicals TID214 and TIO217 are in the preclinical stage.
The company continued to increase investment in R&D and established three advanced technology platforms: therapeutic monoclonal antibody and ADC technology platforms, genetic engineering-based therapeutic technology platforms, and innovative drug delivery technology platforms for drug development; and independently developed perfusing-batch hybrid technology (PB-Hybrid Technology), which disrupts traditional monoclonal antibody production cell processes and can be used for cell expansion during commercial production.
Take the lead in strategic commercialization to help products under development and CDMO business:
It has been 10 years since the company was founded. It has accumulated extensive R&D and production processes in the fields of monoclonal antibodies, ADCs and chemical pharmaceuticals. The monoclonal antibody can accommodate 16,000 liters of production capacity. The company already has pilot and commercial production capacity for ADC products. The infrastructure of the ADC stock solution production workshop was completed in 2020 and put into use in September. Based on the accumulation of deep R&D and production capacity, the company's CDMO business is expected to grow rapidly. The biosimilar drug collection that may be carried out in the second half of 2021 is good for the company. We believe that the company's sufficient and efficient production capacity will drive rapid release of VEGF monoclonal antibody and drive rapid growth in the company's performance.
The initial coverage gave a buying rating, with a target price of HK$7.56:
We expect the company's revenue for 2021-2022 to be RMB 198 million and RMB 514 million respectively, and EPS to be RMB 0.32 and RMB 0.15 respectively. Based on the cash discount method and EV/revenue valuation, the target price given to the company is HK$7.56, corresponding to 8 times EV/revenue in 2022, 45 times PE in 2022. There is room for 70% increase from current prices, covering the “buy” rating for the first time