Incident: Recently, the company released its 2022 annual report. During the reporting period, the company invested 660 million yuan in R&D (+13% year on year), 211 R&D personnel (+31% year on year), and management expenses of 105 million yuan (+20% year on year).

Comment: The company's differentiated pipeline progressed smoothly in 2022. At the 2022 WCLC and ESMO conferences, sulvotinib showed the world's best curative potential and is expected to show competitiveness in a global dimension. Golicitinib differentiation is progressing smoothly for PTCL international multi-centers. Both products are expected to complete international registration clinical registration and submit marketing applications in 2023. In terms of early pipelines, FIC drug DZD8586 has great potential and is expected to gradually show global competitiveness. The company's equity incentive plan shows future pipeline progress and overseas rights transfer With confidence in commercialization, the publication of the fixed increase draft is also expected to bring financial security to the company.

Profit forecasting and valuation: The company is deeply involved in translational medicine, focuses on the development of pioneering drugs and breakthrough treatments, and has formed a rich product line to maintain a high level of competitiveness in the industry. With the progress of international key clinical trials related to suvotinib and golicitinib and the continuous advancement of the subsequent FIC/BIC R&D pipeline, the company is expected to have a variety of globally approved innovative drugs. We adjusted our profit forecasts. We expect the company's EPS for 2023-2025 to be -2.83 yuan, -2.38 yuan, and -1.12 yuan respectively, maintaining the “increase in strength” rating.

Risk warning: New drug development falls short of expectations, product sales fall short of expectations, etc.