Main points of investment
Domestic cell immunotherapy leader: the company is an innovative technology enterprise specializing in immunotherapy drug research and development, recognized by national high-tech enterprises, with international advanced technology and rich R & D experience, has established a highly integrated T cell immunotherapy drug research and development platform.
Tumor cell immunotherapy has a lot of room for growth: cellular immunotherapy is an immunotherapy that gives immune cells (mostly T cells) to patients to treat hematological cancers and solid tumors. With the increasing incidence of cancer and favorable policies, tumor cellular immunotherapy has great room for growth in the future. According to the Frost Sullivan report, the market size of cellular immunotherapy products in China is expected to increase from 1.3 billion yuan to 10.2 billion yuan from 2021 to 2023, with a compound annual growth rate of 181.5%. It is expected to reach 58.4 billion yuan in 2030, with a compound annual growth rate of 28.3% from 2023 to 2030.
EAL immunity as the core, T cell product pipeline multi-layout: the company is studying cellular immunotherapy covering AAL, CAR-T, TCR-T and other technology paths. The company's core product EAL tumor is the only immunocyte product approved to enter the phase II clinical trial of solid tumor therapy in China. Now, clinical trial research has been carried out in 14 third-class hospitals in Beijing, Tianjin, Hebei and Henan, such as the General Hospital of the Chinese people's Liberation Army and Peking Union Medical College Hospital, which is expected to fill the gap of cell therapy in the field of solid tumor in our country.
Investment advice: cellular immunotherapy has grown rapidly in recent years, showing great potential. The company has ploughed the field of cellular immunotherapy for many years, has a highly integrated T cell immunotherapy drug research and development platform and production base, its pipeline has layout in many sub-areas, and the R & D progress of some products is also leading in China. It is expected to enjoy the dividend of industry growth. The core product EAL brands is in the middle and later stage of research and development, and has high technical barriers. The company is taking a series of commercial actions, which is expected to become the long-term driving force of future performance growth, which is worthy of long-term attention.
The profit forecast is that the company will start to earn operating income in 2022, and the expected operating income will be 18.77 yuan in 2022 and 3.615 billion yuan in 2023. Accordingly, we give the company's target price of HK $20.00, corresponding to the closing price of HK $17.60 on May 26, 2021. The expected increase is 13.64%, and the "prudent overweight" rating is given.