Event: The company released its report for the first quarter of 2024. In the first quarter of 2024, the company achieved operating income of 5.359 billion yuan, an increase of 74.8% over the previous year; realized net profit attributable to shareholders of listed companies - 1,908 billion yuan; and realized net profit deducted from mother - 2,047 billion yuan.
Comment:
The company's Q1 net profit loss to mother declined year-on-year. The company achieved net profit of 2,046 billion yuan in the first quarter of 2024, compared to -2,613 billion yuan in the same period last year. The net profit loss to mother decreased year-on-year, mainly due to the rapid growth of the company's product revenue, which increased 74.8% year on year, faster than the company's operating expenses.
The company's Q1 core products continued to be released and achieved rapid growth. The company's product revenue for the first quarter of 2024 was 5.325 billion yuan, up 89.6% year on year. The increase in product revenue was mainly due to increased sales of the company's self-developed products Baiyue Ze, Baizean, and Amgen authorized products. Baiyueze's global sales totaled 3.476 billion yuan, an increase of 140.2% over the previous year, further consolidating its leading position in the field of hematologic oncology. Among them, US sales totaled 2,496 billion yuan, up 162.7% year on year, mainly due to the increase in the market share of this product in primary treatment (TN) chronic lymphocytic leukemia (CLL). At the same time, the market share in new patients with recurrent or refractory (R/R) CLL is also ahead of similar BTK inhibitor drugs. European sales totaled 476 million yuan, up 256.8% year over year, mainly due to growing market share and the inclusion of health insurance in many places, including the first reimbursement in France for CLL, Fahrenheit's macroglobulinemia (WM), and marginal zone lymphoma (MZL) indications. The total sales volume in China was 413 million yuan, up 25.5% year on year, mainly due to the increase in sales of this product in approved indications. Baizean's sales totaled 1,044 billion yuan, an increase of 32.8% over the previous year. The increase in Baizean's sales is mainly due to the demand for new patients brought about by the inclusion of new indications in medical insurance and the increase in the number of drugs entering hospitals.
The company accelerated its international layout. Baiyueze, a BTK inhibitor independently developed by the company, has been approved for multiple indications in 70 markets including the United States, China, the European Union, the United Kingdom, Canada, Australia, South Korea and Switzerland. It has established an extensive clinical development layout around the world, and has enrolled more than 5,000 subjects in 29 countries and regions. The company expects Baiyueze to be approved by China's National Drug Administration (NMPA) in June 2024 to treat adult R/R FL patients who have previously received at least two lines of systematic treatment. Baizean has been approved in the US, EU, and UK for second-line treatment of adult patients with esophageal squamous cell carcinoma (ESCC), and has been approved in the EU for first-line and single-agent chemotherapy for three indications for second-line treatment of metastatic non-small cell lung cancer (NSCLC). The company is continuing to promote the progress of the globalization of self-developed drugs, and will continue to expand Baiyueze's global pharmaceutical registration program.
Maintain the company's “gain” rating. The company's EPS is expected to be -3.41 yuan and -1.31 yuan respectively in 2024-2025. As a leading domestic innovative drug enterprise, the company has a rich product structure and strong R&D strength. The release of core products is accelerated, and the international layout continues to accelerate. Maintain the company's “gain” rating.
Risk warning. Risks such as product development progress falling short of expectations, risk of product sales falling short of expectations, risk of internationalization falling short of expectations, risk of the company continuing to lose money, etc.