Event: The company's total revenue for 2024H1 was $0.31 billion. Among them, the comprehensive revenue from the oncology business was 0.169 billion US dollars, and the revenue from other businesses was 0.137 billion US dollars. The sales volume of the main commercial product 2024H1 is as follows: furoquintinib overseas sales of $0.131 billion; domestic sales of fruquintinib 0.061 billion dollars (yoy 13%); surufatinib 0.025 billion dollars (yoy 17%); and sevotinib 0.026 billion dollars (yoy 22%).

Fruquintinib continues to be released overseas, and the guidelines highly recognize it: Fruquintinib was approved in the European Union on June 20, 2024. More regulatory registration applications from more than a dozen other countries and regions, including Japan, are also progressing as scheduled. In the first half of 2024, the US market sales of fruquintinib reached $0.1305 billion. While receiving acceptance from American patients, fruquintinib was quickly incorporated into the 2023 “NCCN Clinical Practice Guidelines for Colon Cancer” and the 2023 “NCCN Clinical Practice Guidelines for Rectal Cancer” on November 16, 2023, and was also recommended by several other major treatment guidelines in the field of colorectal cancer. These will all continue to drive awareness and use of fruquintinib among doctors and patients.

The R&D portfolio continues to advance: cevotinib has now carried out multiple registered studies in patients, 3 of which are global studies. In March 2024, supplementary applications for treatment of primary treatment and treatment of MET exon 14 non-small cell lung cancer were accepted by the CDE. For NSCLC indications of second-line MET amplifying EGFR-TKI resistance, it is expected that patient recruitment for the SACHI study (China Phase III) will be completed by the end of 2024; around the end of 2024, a new drug marketing application will be submitted to the US FDA based on the SAVANNAH study (global, if positive results are obtained); the US clinical trial of solepinib is about to begin. The company's growing hematology product portfolio has added new programs targeting Menin and CD38 to the existing portfolio of inhibitors and antibodies targeting Syk 12, EZH213, IDH14, BTK15, and CD47.

Investment proposal: We expect the company's total revenue for 2024-2026 to be $0.675/0.866/1.085 billion.

It is expected to be profitable in 2025. The company's overseas revenue continues to grow, the growth certainty is high, and the “gain” rating is maintained.

Risk warning: Product registration approval progress falls short of expectations; competition intensifies; commercialization falls short of expectations.