The company released its three-quarter report for 2024: The company achieved operating income of 0.339 billion yuan (+743.97%), net profit to mother of -0.559 billion yuan (+32.63%), and net profit after deducting non-return to mother of -0.6 billion yuan (+29.93%) in the first three quarters of 2024. The company achieved operating income of 0.135 billion yuan (+236.39%), net profit to mother of -0.214 billion yuan (+32.09%), and net profit after deducting non-attributable net profit of -0.219 billion yuan (+31.66%).

Product sales revenue continues to grow, and the R&D pipeline is advancing rapidly

According to the company's 2024 three-quarter report, 2024Q3 achieved revenue of 0.135 billion yuan (+236.39%), mainly due to the company's two innovative drugs, Schwarzhe and Colditch, which were approved in August 2023 and June 2024, respectively. Product sales revenue increased dramatically. In June 2024, Gao Ruizhe (generic name: golixitinib capsules), the world's first and only highly selective JAK1 inhibitor in the field of lymphoma, was officially approved by the National Drug Administration (NMPA). The single drug is suitable for adult patients with recurrent or refractory peripheral T-cell lymphoma (r/r PTCL) who have received at least first-line systemic treatment in the past. With the launch of the company's second commercial product, golixitinib, in China, we believe that the company will continue to maintain stable doses in the future. Performance is expected to continue to grow steadily ; According to the company's 2024 semi-annual report & three-quarter report, DZD8586 is the world's first non-covalent LYN/BTK dual-target inhibitor for B-NHL independently developed by the company, and can completely penetrate the blood-brain barrier. Phase I/II clinical trials of DZD8586 for r/RB-NHL progressed smoothly during the reporting period. DZD6008 is a small molecule targeted inhibitor for advanced lung cancer independently developed by the company. Preclinical studies have shown that all drug indicators of DZD6008 have met expectations and can effectively inhibit the growth of lung cancer cells. In April 2024, the company was approved to conduct phase I clinical research on DZD6008 in China. The company spent 0.568 billion yuan on R&D in the first three quarters of 2024. We believe that the company's continued R&D investment will help the product pipeline advance rapidly and provide support for future performance.

Investment advice

Maintaining the company's profit forecast, the total revenue for 2024-2026 is expected to be 0.466 billion yuan/0.902 billion/ 1.512 billion yuan, respectively, and EPS for 2024-2026 is -1.95/-1.22/ -0.14 yuan, respectively, corresponding to the closing price of 48.14 yuan/share on November 1, 2024, PE is -23/-36/-314 X, respectively. Considering that the company's performance has a large room for growth, the “buy” rating is maintained.

Risk warning

Pharmaceutical industry policies fall short of expectations, market competition increases risks, product sales and promotion fall short of expectations, and progress in innovative drug research and development falls short of expectations