Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [2][4][6] Core Insights - The deconsolidation of Legend Biotech has led to a significant profit improvement for Genscript, with a profit from discontinued operations of approximately $3 billion, compared to a loss of about $518 million in the same period last year [7][17] - The company expects a positive trend for its continuing business segments in 2025, with projected revenues of $938 million, representing a year-on-year growth of 58% [2][8] - The total equity valuation of Genscript is estimated at $6.296 billion, translating to a target price of HK$22.78 per share [6][17] Summary by Segment Life Sciences Segment - Expected revenue for 2025 is $523 million, with a year-on-year growth rate of 15% and an adjusted operating profit of $104 million, also growing by 15% [13][14] - The segment's revenue in 2024 was approximately $454.9 million, up by 10.2% year-on-year, with an adjusted gross profit of about $237.7 million [14][17] Biologics Development Services Segment - Projected Fee-for-Service revenue for 2025 is $113 million, up by 19% year-on-year [14][17] - The segment's revenue in 2024 was about $95 million, down by 13.2% year-on-year, but showed signs of recovery in the second half of 2024 [14][17] Industrial Synthetic Biology Products Segment - Expected revenue for 2025 is $67 million, with a year-on-year growth rate of 25% [15][17] - The segment's revenue in 2024 was approximately $53.7 million, up by 24.6% year-on-year [14][17] Legend Biotech - Following the deconsolidation, the market capitalization of Legend Biotech was approximately $6.8 billion, with Genscript holding a 47.51% stake valued at about $3.231 billion [16][17]

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [2][4][6] Core Insights - The deconsolidation of Legend Biotech has led to a significant profit improvement for Genscript, with a profit from discontinued operations of approximately $3 billion, compared to a loss of about $518 million in the same period last year [7][17] - The continuing business segments are expected to show positive trends in 2025, with revenue from continuing operations projected at approximately $594.5 million, representing a year-on-year increase of 6.1% [3][14] - The total equity valuation of Genscript is estimated at $6.296 billion, translating to a target price of HK$22.78 per share [6][17] Summary by Segment Life Sciences Segment - Expected revenue for 2025 is $523 million, with a year-on-year growth rate of 15% and an adjusted operating profit of $104 million, also growing by 15% [13][14] - The segment's revenue in 2024 was approximately $454.9 million, up by 10.2% year-on-year, with an adjusted gross profit of about $237.7 million [3][14] Biologics Development Services Segment - Projected Fee-for-Service revenue for 2025 is $113 million, up by 19% year-on-year [14] - The segment's revenue in 2024 was about $95 million, down by 13.2% year-on-year, but showed a recovery with a growth rate of about 38% in the second half of 2024 [3][14] Industrial Synthetic Biology Products Segment - Expected revenue for 2025 is $67 million, with a year-on-year growth rate of 25% [14] - The segment's revenue in 2024 was approximately $53.7 million, up by 24.6% year-on-year, with an adjusted gross profit of about $22.6 million [3][14] Legend Biotech - Following the deconsolidation, the market capitalization of Legend Biotech was approximately $6.8 billion, with Genscript holding a 47.51% stake valued at about $3.231 billion [5][16]

Investment Rating - The report maintains a "Buy" rating for King’s Ray Biotechnology [3][9]. Core Views - The company is experiencing positive development across its three main segments, with an expected improvement in profitability. The joint venture Legend Biotech is ramping up production, which is anticipated to contribute profits to the parent company in 2026 [3][9]. Financial Summary - Revenue for 2024 is projected at $595 million, reflecting a 6.1% increase. The group net profit is expected to reach approximately $2.96 billion, marking a significant turnaround from losses, primarily due to a one-time investment gain from the merger with Legend Biotech [9]. - The adjusted net profit from continuing operations is stable at about $59.8 million, up by 2.9% [9]. - Revenue breakdown includes: - Life Sciences segment: $455 million (+10.2%), with an adjusted gross margin of 52% (+5.9 percentage points) [9]. - CDMO segment: $95 million (-13.2%), with an adjusted gross margin of $14 million [9]. - Baisjie segment: $54 million (+24.6%), with an adjusted gross margin of 36.1% (+2.8 percentage points) [9]. - The CAR-T therapy sales are projected to reach nearly $1 billion, with significant new capacity coming online [9]. Growth Catalysts - The CAR-T therapy is expected to exceed sales expectations, and a recovery in investment and financing is anticipated [9]. - The approval of the second-line MM in the U.S. is expected to drive sales growth, with CARVYKTI projected to generate $963 million in revenue for 2024, a 92.6% increase [9].

| 52周高位 (港元) | 17.28 | | --- | --- | | 52周低位 (港元) | 8.23 | | 市值 (百万港元) | 27,121.66 | | 日均成交量 (百万) | 28.89 | | 年初至今变化 (%) | 30.08 | | 200天平均价 (港元) | 11.38 | | 资料来源 : FactSet | | 丁政宁 交银国际研究 财务模型更新 | 医药 | 收盘价 | | 目标价 | 潜在涨幅 | 2025 年 3 月 13 日 | | --- | --- | --- | --- | --- | --- | | 港元 | | 12.80 | 港元 28.75 | +124.6% | | | 金斯瑞生物 (1548 HK) | | | | | | 2H24 核心业务板块增速复苏，新业务将迎增长拐点，维持买入 剔除传奇生物（LEGN US/买入）脱表影响后的 2024 全年收入和经调整净利润 基本符合业绩预告或我们的预期，生命科学和 CDMO 业务在 2H24 迎来增速反 弹，2025 年蓬勃生物和百斯杰有望迎来关键增长拐点。维持买入评级和 28.75 港元目标价。 1 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 28.75, indicating a potential upside of 124.6% from the current price of HKD 12.80 [1][6]. Core Insights - The core business segments are expected to recover in the second half of 2024, with new business lines anticipated to reach a growth inflection point. The adjusted revenue and net profit for 2024 are in line with expectations, with significant growth expected in the life sciences and CDMO businesses in 2025 [2][6]. - The company has shown a strong recovery momentum in its core business segments, particularly in the life sciences sector, which reported a year-on-year revenue increase of 10%. The protein business experienced nearly 50% growth, enhancing the delivery capacity of gene services [6][7]. Financial Performance Summary - Revenue projections for 2025 are set at USD 912 million, reflecting a 28.6% increase from previous forecasts. The gross profit is expected to reach USD 541 million, a 58.1% increase, with a gross margin of 59.3% [5][13]. - The net profit attributable to shareholders is projected at USD 239 million for 2025, with a net profit margin of 26.2%, significantly up from 9.0% in the previous year [5][13]. - The company anticipates a strong performance in 2025, with guidance indicating a 10-15% revenue growth in the life sciences business and a 15-20% growth in the CDMO segment [6][7]. Stock Performance and Valuation - The stock has shown a year-to-date increase of 30.08%, with a 52-week high of HKD 17.28 and a low of HKD 8.23 [4][6]. - The SOTP (Sum of the Parts) valuation model estimates the total valuation at approximately USD 8.795 billion, with the life sciences services segment contributing significantly to the overall valuation [7][6].

Genscript Biotech (01548) H2 2024 Earnings Call March 12, 2025 08:40 AM ET Company Participants Shiniu Wei - Chief Financial OfficerWeihui Shao - CEO & COORay Chen - President of GenScript Life Science Group Conference Call Participants Daisy Cheng - AnalystLinhai Percy Zhao - Equity Research AnalystNone - Analyst Operator Good day and thank you for standing by. Welcome to Gentscript BioTech twenty twenty four Annual Results Conference Call. At this time, all participants are in a listen only mode. After th ...

Core Insights - The company reported a revenue increase to approximately $594.5 million for the year ending December 31, 2024, representing a 6.1% growth from about $560.5 million in 2023, driven by enhanced brand influence in the European and American markets and the introduction of new services and products [1] - The company achieved a significant profit turnaround, moving from a loss of approximately $355.1 million in 2023 to a profit of about $2.9 billion in 2024, largely due to the demerger of its cell therapy business [1] - Adjusted net profit from continuing operations grew by 2.9% to approximately $59.8 million [1] Revenue Composition - Life sciences services and products accounted for 75.8% of total revenue, biopharmaceutical development services made up 14.8%, and industrial synthetic biology products represented 9.0% [1] Expense Analysis - Sales and distribution expenses increased by 10.0% to approximately $88.1 million, attributed to increased marketing efforts and investment in commercial talent [1] - Administrative expenses rose by 7.1% to about $114.4 million, mainly due to capacity expansion and enhanced administrative functions [1] - Research and development expenses grew by 2.1% to approximately $53.8 million [2]

Financial Performance - The adjusted net profit for the continuing operations was approximately $59.8 million, an increase of 2.9% compared to approximately $58.1 million in the previous period[7]. - The revenue from continuing operations was approximately $594.5 million, representing a 6.1% increase from approximately $560.5 million in the prior year[6]. - The gross profit for continuing operations was approximately $272.1 million, remaining stable compared to the previous year[6]. - The company reported a profit of approximately $2.9 billion for the reporting period, compared to a loss of approximately $355.1 million in the previous period[6]. - The loss from continuing operations was approximately $173.8 million, compared to a profit of approximately $162.9 million in the prior year[6]. - The company achieved a significant gain of approximately $3.2 billion from the merger with Legend, which contributed to the overall profit[9]. - The basic earnings per share for the year was 139.63 cents, compared to a loss of 4.53 cents in the previous year[10]. - The total comprehensive income for the year was approximately $2.79 billion, compared to a loss of approximately $335.6 million in the previous year[12]. - The company reported a pre-tax loss of $170,797,000 for the year ended December 31, 2024, compared to a profit of $168,885,000 in 2023[31]. - The company reported a significant profit increase due to the revenue from the deconsolidated cell therapy business, with profits rising to approximately $2.9 billion from a loss of approximately $355.1 million in the previous year[76]. Revenue Breakdown - Revenue for the period was $186,522 thousand, with a net loss of $(71,524) thousand[56]. - Revenue from the life sciences services and products segment accounted for 75.8% of total revenue, while biopharmaceutical development services and industrial synthetic products accounted for 14.8% and 9.0%, respectively[76]. - Revenue from the life sciences services and products segment was approximately $454.9 million, a 10.2% increase from approximately $412.9 million in the previous year[79]. - Revenue from biopharmaceutical development services was approximately $95.0 million, a decrease of 13.2% from approximately $109.5 million in the previous period[82]. - Revenue from industrial synthetic biological products increased by 24.6% to approximately $53.7 million, up from approximately $43.1 million in the previous period[85]. Expenses and Liabilities - The company incurred research and development expenses of approximately $53.8 million, an increase from approximately $52.7 million in the previous year[9]. - The total administrative expenses for 2024 were $114,375,000, an increase from $106,820,000 in 2023, indicating a rise of approximately 7%[25]. - Selling and distribution expenses rose by 10.0% to approximately $88.1 million, primarily due to increased marketing efforts and investment in commercial talent[91]. - The financing costs rose to $8,032,000 in 2024 from $5,739,000 in 2023, marking an increase of approximately 40%[33]. - The company incurred a fair value loss on preferred shares amounting to $123,581,000 in 2024, compared to a gain of $129,207,000 in 2023[25]. Cash Flow and Assets - Net cash flow from operating activities improved to $75,647 thousand in 2024 from a negative $286,911 thousand in 2023[17]. - Investment activities resulted in a net cash outflow of $1,456,363 thousand in 2024, compared to $357,728 thousand in 2023, indicating increased investment[17]. - Total current liabilities decreased from $494,811 thousand in 2023 to $307,342 thousand in 2024, a reduction of approximately 38%[16]. - Cash and cash equivalents decreased dramatically from $1,446,403 thousand in 2023 to $131,990 thousand in 2024, a decline of about 90.9%[17]. - The company reported a cash outflow from operating activities of $61,955,000 for the nine months ended September 30, 2024, compared to an outflow of $393,276,000 for the entire year of 2023, showing a significant reduction in cash burn[42]. Equity and Assets - Total equity increased from $2,044,354 thousand in 2023 to $4,323,362 thousand in 2024, reflecting a growth of approximately 111.1%[16]. - The company reported a significant reduction in trade receivables from $217,443 thousand in 2023 to $116,291 thousand in 2024, a decrease of about 46.6%[14]. - The company’s total liabilities decreased from $1,342,948 thousand in 2023 to $954,907 thousand in 2024, indicating a reduction of approximately 29%[16]. - The total assets as of September 30, 2024, amounted to $1,735,825,000, a decrease from $1,848,609,000 as of December 31, 2023[38]. - The group’s property, plant, and equipment decreased by 14.8% to approximately $518.0 million, primarily due to the deconsolidation of Legend and impairment losses[108]. Strategic Initiatives - The company plans to continue focusing on market expansion and new product development to drive future growth[9]. - The company plans to invest in R&D to accelerate innovation in antibody drug development, AI drug development, and other advanced therapies[80]. - The company aims to enhance global production capacity and provide localized supply chain solutions in the U.S., Singapore, and mainland China[80]. - The company is diversifying its global production footprint and supply chain partners to mitigate risks associated with geopolitical factors and international trade agreements[142]. - The company continues to seek potential partnerships to advance its cell therapy pipeline and explore new business opportunities[154]. Governance and Compliance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and responsibility[165]. - The audit committee, consisting of four independent non-executive directors, is responsible for reviewing and supervising the company's financial reporting system and risk management[168]. - The company has adopted a self-developed "Standard Code for Securities Transactions by Directors and Relevant Persons," ensuring compliance with the standards set out in the listing rules[167]. - The company will continue to review and strengthen its corporate governance practices to ensure compliance with the corporate governance code[166]. Workforce and Employee Investment - Employee compensation expenses totaled approximately $264.7 million, accounting for about 44.5% of total revenue, reflecting a commitment to talent investment[156]. - The workforce consists of approximately 5,568 employees, with 53.6% in production and 11.2% in sales and marketing[156].

Investment Rating - The report maintains a "Buy" rating for King’s Ray Bio (1548 HK) with a target price of HKD 28.75, indicating a potential upside of 140% from the current price of HKD 11.98 [2][3]. Core Insights - King’s Ray Bio is expected to achieve a significant increase in net profit in 2024, primarily driven by a one-time unrealized gain of approximately USD 3.2 billion from the sale of Legend Biotech, which exceeds previous estimates of USD 2-3 billion [1]. - The company is projected to fully enter the profit zone starting in 2024, with a recovery in the GCT (Gene Cell Therapy) business expected to continue through 2025-2026, leading to a revenue growth rate of around 20% for non-cellular business [1]. - The improvement in the company's fundamentals, coupled with a recovery in investor sentiment, is anticipated to drive valuation recovery, as geopolitical factors and favorable policies for innovative drug payments are expected to enhance investment sentiment in the CXO sector [1]. Summary by Sections Financial Performance - The report highlights that the adjusted net profit for non-cellular business in 2024 will remain stable compared to 2023, with no significant changes expected [1]. - The tax losses from Legend Biotech prior to its merger will be accounted for in non-continuing operations, while post-merger, it will be accounted for using the equity method [1]. Market Outlook - The report notes a strong recovery trend in new orders for protein/antibody drugs and GCT, with first-half 2024 new orders recovering to 13 and 24 respectively, compared to 10 and 21 in the first half of 2023 [1]. - The sentiment in the market is improving, with King’s Ray's stock price rising 34% from its year-to-date low, significantly outperforming the Hang Seng Medical Index and the Hang Seng Index, both of which increased by 19% [1].

交银国际研究 消息快报 医药 2025 年 2 月 17 日 金斯瑞生物 (1548 HK) 2024 年一次性收益驱动净利润转正，2025 年起全面盈利+增速复苏可期 丁政宁 Ethan.Ding@bocomgroup.com (852) 3766 1834 诸葛乐懿 Gloria.Zhuge@bocomgroup.com (852) 3766 1845 此报告最后部分的分析师披露、商业关系披露和免责声明为报告的一部分，必须阅读。 下载本公司之研究报告，可从彭博信息：BOCM 或 https://research.bocomgroup.com 解除合并传奇收益高于此前预期：公司预计 2024 年净利润相较 2023 年将 有大幅增长，主要得益于：1）视作出售传奇生物（LEGN US/买入）的一 次性未实现收益约 32 亿美元，超过公司此前预计的 20-30 亿美元（见我们 此前发布的报告），2024 年内，传奇生物解除合并前的税后亏损将计入 非持续经营业绩，解除后则使用权益法核算；2）蓬勃生物优先股公允价 值变动相关的非现金亏损1.24 亿美元，主要来自礼新交易贡献及宏观经济 改善。扣除上述两项影响后，公司 ...