Investment Rating - Maintain "Recommend" rating [1][3] Core Views - Revenue growth driven by strong demand for innovative product portfolio and effective commercialization strategy, with product revenue increasing by 55.1% YoY to 3.811 billion CNY [2] - Operating efficiency improved with product sales expense ratio decreasing by 5.9 percentage points and administrative expense ratio decreasing by 4.9 percentage points [2] - EBITDA loss narrowed by 39.9% to 160 million CNY, with potential to achieve EBITDA breakeven next year [2] - Solid foundation in oncology with PD-1 approved for seven indications and included in the national reimbursement drug list [2] - CVM pipeline commercialization expected to materialize soon, with 11 commercialized products and expanding reimbursement coverage [2] - Early-stage pipeline is rich with multiple innovative molecules showing positive data, including IBI363, IBI343, and IBI389 [3] - Revenue forecasts for 2024-2026 are 8.133 billion, 10.867 billion, and 13.595 billion CNY, with net profit turning positive in 2025 [3][5] Financial Performance - 2024 H1 revenue reached 3.952 billion CNY, a 46.3% YoY increase [2] - R&D investment in 2024 H1 was 1.294 billion CNY, with cash on hand at 10.112 billion CNY [2] - Gross margin expected to remain stable at 80.76% in 2024, increasing to 85.22% by 2026 [5][6] - Net profit forecasted to turn positive in 2025 at 53 million CNY, with significant growth to 818 million CNY in 2026 [5][6] Pipeline and Commercialization - Oncology: PD-1 remains a cornerstone product with seven approved indications, and new drugs like Tareltinib (ROS1) expected to be approved soon [2] - CVM: Masdutide for weight loss and type 2 diabetes, and Teprotumumab for thyroid eye disease have submitted NDAs [2] - Autoimmune: Piconibart (IL-23p19) plans to submit NDA within the year [2] - Early-stage pipeline includes IBI363 (PD-1/IL-2a), IBI343 (CLDN18.2 ADC), and IBI389 (CLDN18.2/CD3) showing promising results in clinical trials [3]

Investment Rating - Buy (Maintained) [1] Core Views - The company's revenue is expected to grow rapidly, with projected revenues of 7.9 billion, 10.3 billion, and 13.2 billion RMB for 2024, 2025, and 2026 respectively [4] - The company's net profit is forecasted to turn positive in 2025, reaching 436.85 million RMB, and further increasing to 1.16 billion RMB in 2026 [1] - The company's EPS is expected to improve significantly, from -0.37 in 2024 to 0.27 in 2025 and 0.71 in 2026 [1] Financial Performance - In the first half of 2024, the company achieved revenue of 3.95 billion RMB, a 46.3% year-on-year increase [2] - The company reported a net loss of 390 million RMB in the first half of 2024, with product revenue reaching 3.81 billion RMB, a 55.1% increase [2] - The company's revenue growth is driven by the strong performance of Tyvyt® (sintilimab injection) and other products, as well as the accelerated growth of new products [2] Product Pipeline - The company has launched one new innovative drug, expanding its commercialized products to 11 [3] - Six NDAs are under review by the NMPA, including IBI344 (taletrectinib, ROS1) for first-line and second-line indications, and IBI362 (mazdutide) for weight management and type 2 diabetes [3] - IBI344 (taletrectinib) is expected to be approved in the second half of 2024, and IBI112 (IL-23p19) is expected to submit an NDA [4] Key Data Updates - The company will present updated Phase 1 data for its global first-in-class PD-1/IL-2α-bias in lung cancer treatment at WCLC [4] - Key clinical data for IBI354 (HER2 ADC) in HER2-positive solid tumors will be presented at ESMO [4] - Multiple clinical data updates for Tyvyt® (sintilimab injection) are expected at upcoming conferences [4] Financial Metrics - The company's revenue growth rate is projected to be 27.34% in 2024, 30.87% in 2025, and 28.06% in 2026 [1] - The company's net profit growth rate is expected to be 171.51% in 2025 and 166.12% in 2026 [1] - The company's ROE is forecasted to improve from -5.13% in 2024 to 3.54% in 2025 and 8.60% in 2026 [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 60 [2][4]. Core Insights - The company's revenue for 1H24 reached RMB 39.5 billion, representing a year-on-year increase of 46.3% and a quarter-on-quarter increase of 12.8%. Product revenue specifically was RMB 38.1 billion, up 55.1% year-on-year and 16.5% quarter-on-quarter, aligning with previous announcements [3]. - The adjusted non-IFRS net loss for 1H24 was RMB 1.6 billion, a reduction of 15.9% year-on-year and 50.6% quarter-on-quarter, which was better than both the report's and market's expectations [3]. - The strong growth in product revenue is attributed to the robust performance of Tyvyt and three biosimilars, as well as the successful launch of new products like Sapitinib and Huiranzhuo [3]. - The company aims for EBITDA breakeven by 2025 and projects a revenue target of RMB 20 billion by 2027, with an expected revenue growth of approximately 30% in the second half of 2024 [3]. Financial Performance Summary - For 2022, the company reported revenue of RMB 4.56 billion, which increased to RMB 6.21 billion in 2023, and is projected to reach RMB 8.58 billion in 2024, reflecting a year-on-year growth of 36.2% [7]. - The adjusted net loss is expected to narrow from RMB 515 million in 2023 to RMB 328 million in 2024, with a return to profitability projected in 2025 with a net profit of RMB 1.7 billion [7]. - The gross margin is expected to improve to 83.0% by 2024, up from 81.7% in 2023 [9]. Research and Development Pipeline - The company is advancing its R&D pipeline, with key updates expected at upcoming conferences regarding IBI363 and other assets [3]. - The management has indicated that the sales efficiency of the oncology pipeline will improve, leading to a decrease in sales and administrative expenses in the second half of 2024 and beyond [3].

SAN FRANCISCO and SUZHOU, China, Sept. 1, 2024 /PRNewswire/ -- Innovent Biologics, Inc. ("Innovent") (HKEX: 01801), a world-class biopharmaceutical company that develops, manufactures and commercializes high-quality medicines for the treatment of oncology, autoimmune, cardiovascular and metabolic, ophthalmology and other major diseases, announces that multiple clinical study results of mazdutide (GLP1R/GCGR dual agonist) will be presented at the European Association for the Study of Diabetes® (EASD) 60th An ...

收入增长强劲，创新管线加速推进 信达生物(1801) [Table_Industry] 医药 [Table_Invest] 评级： 增持 ——信达生物 2024H1 点评 [当前价格 Table_CurPrice] (港元)： 42.45 本报告导读： 24H1 收入增长强劲，多临床管线进展顺利，运营效率持续提升，多款非肿瘤管线有 望于 2025 年获批上市，推动公司实现 EBIDAT 盈亏平衡，维持"增持"评级。 投资要点： 股 票 研 究 [table_Authors] 丁丹(分析师) 甘坛焕(分析师) 付子阳(研究助理) 0755-23976735 021-38675855 0755-23976666 dingdan@gtjas.com gantanhuan028803@gtjas.com fuziyang028496@gtjas.com [Table_Market] 交易数据 海 外 公 司 （ 中 国 香 港 ） 登记编号 S0880514030001 S0880523080007 S0880123100022 52 周内股价区间（港元） 30.10-48.45 当前股本（百万股） 1,629 当前 ...

Investment Rating - The investment rating for the company is "Buy" with a target price raised to HKD 60.00, indicating a potential upside of 36.0% from the current price of HKD 44.10 [3][5]. Core Insights - The company reported a better-than-expected adjusted net loss in 1H24, with strong product sales growth and improved operational efficiency. Total revenue increased by 46% year-on-year to RMB 39.5 billion, driven by a 50% increase in PD-1 sales to over RMB 1.7 billion and a growing portfolio of biosimilar products [1][2]. - The company expects to achieve EBITDA breakeven by 2025, with a cash reserve of RMB 10.1 billion as of the end of 1H24. The guidance for product revenue is set to reach RMB 20 billion by 2027, supported by at least seven products expected to launch between 2H24 and 2027 [1][2]. Summary by Sections Financial Performance - In 1H24, the adjusted gross margin improved by 1.8 percentage points, while adjusted selling and administrative expenses decreased by 5.9 and 4.9 percentage points, respectively. The adjusted net loss narrowed to RMB 160 million from RMB 190 million in 1H23, outperforming market expectations [1]. - The company anticipates a 57% increase in R&D expenses for the year, with total R&D spending expected to be nearly USD 400 million [1]. Pipeline Strategy - The company maintains a clear pipeline strategy with a focus on oncology, utilizing an "IO+ADC" approach. The lifecycle management of PD-1 will explore major indications such as colorectal cancer and perioperative lung cancer. The next-generation IO candidate IBI363 has shown promising preliminary data [2]. - The company plans to launch the weight loss and diabetes indication for its product Masitide in 2025, with several other products also expected to be approved in the coming years [2]. Financial Projections - Revenue projections for 2024-2026 have been raised by 2-8%, with expected revenues of RMB 8.06 billion in 2024, RMB 10.94 billion in 2025, and RMB 13.20 billion in 2026 [7]. - The DCF valuation model estimates a share value of HKD 60.00, based on projected free cash flows and a perpetual growth rate of 2% [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [3][7]. Core Insights - The company reported a strong revenue growth of 55% year-on-year in 1H24, driven by the success of its commercial products, particularly the drug Dabrushe (Sintilimab) [2][3]. - The gross margin improved by 1.6 percentage points to 82.9%, attributed to increased production and ongoing cost optimization [3]. - The company is expanding its commercial product offerings, with expectations to increase the number of commercialized products to 12 by the end of the year [3]. Financial Summary - **Revenue Growth**: The company’s revenue is projected to grow from 6,206 million RMB in 2023 to 7,823 million RMB in 2024, reflecting a growth rate of 26.05% [1]. - **Net Profit**: The net profit is expected to improve significantly, moving from a loss of 1,028 million RMB in 2023 to a loss of 524 million RMB in 2024, with a forecasted profit of 1,098 million RMB by 2026 [1]. - **Earnings Per Share (EPS)**: The diluted EPS is projected to improve from -0.63 RMB in 2023 to 0.09 RMB in 2025, and further to 0.67 RMB in 2026 [1]. - **Return on Equity (ROE)**: The ROE is expected to turn positive by 2025, reaching 1.23% and further increasing to 8.29% by 2026 [1]. Research and Development - The company has six New Drug Applications (NDAs) currently under review by the National Medical Products Administration, with significant advancements in the cardiovascular and metabolic (CVM) fields [3]. - The company has multiple late-stage clinical projects making milestone progress, with several innovative pipelines showing promising preliminary data [3].

SAN FRANCISCO and SUZHOU, China, Aug. 28, 2024 /PRNewswire/ -- Innovent Biologics, Inc. ("Innovent") (HKEX: 01801), a world-class biopharmaceutical company that develops, manufactures and commercializes high quality medicines for the treatment of oncology, cardiovascular and metabolic, autoimmune, ophthalmology and other major diseases, announces that nearly 20 accepted clinical data of its novel oncology molecules, including six oral presentations, will be released at World Conference on Lung Cancer (WCLC) ...

Strong commercial performance and significant pipeline milestones support sustained growth and innovationSAN FRANSISCO and SUZHOU, China, Aug. 28, 2024 /PRNewswire/ -- Innovent Biologics, Inc. (Innovent) (HKEX: 01801), a world-class biopharmaceutical company that develops, manufactures and commercializes high-quality medicines for the treatment of cancer, cardiovascular and metabolic, autoimmune, ophthalmology and other major diseases, announces its 2024 interim results and major business updates.Dr. Michae ...

Financial Performance - For the six months ended June 30, 2024, total revenue was RMB 3,952.3 million, an increase of 46.3% compared to RMB 2,701.5 million for the same period in 2023[3]. - Product revenue for the same period was RMB 3,811.4 million, representing a growth of 55.1% from RMB 2,457.5 million in the prior year[3]. - Gross profit for the six months ended June 30, 2024, was RMB 3,274.7 million, compared to RMB 2,196.9 million in the same period of 2023, representing a growth of 49%[40]. - The company reported a pre-tax loss of RMB 392.6 million for the six months ended June 30, 2024, compared to a loss of RMB 256.1 million in the same period of 2023[40]. - The net loss for the period was RMB 392.6 million, an increase of RMB 253.5 million from RMB 139.1 million in the prior year[3]. - The company’s basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.24, compared to RMB 0.09 in the same period of 2023[72]. - Other income increased to RMB 300.6 million for the six months ended June 30, 2024, from RMB 232.4 million in the same period of 2023, marking a rise of 29.3%[44]. Research and Development - Research and development expenses increased to RMB 1,399.4 million, compared to RMB 922.8 million in the same period last year[3]. - The company delivered six molecules into clinical research for new drug applications (IND) during the reporting period, enhancing global innovation and sustainable growth[9]. - IBI362 has five ongoing Phase 3 clinical trials, with GLORY-1 and DREAMS-1 achieving study endpoints to support its NDAs[7]. - The company is focused on developing innovative therapies for chronic diseases, with IBI3016 (AGT siRNA) entering Phase 1 clinical trials for hypertension[19]. - The company is actively expanding its pipeline with next-generation innovations, including bispecific antibodies and ADCs, targeting unmet needs in oncology, autoimmune diseases, cardiovascular diseases, and ophthalmology[36]. Product Development and Approvals - The company expanded its commercial product portfolio to 11 products, including the approval of the KRAS G12C inhibitor Daberet® for treating advanced NSCLC patients with KRAS G12C mutations[6]. - The NDA for IBI311 (anti-IGF-1R monoclonal antibody) was submitted and accepted by NMPA in May 2024, addressing a significant unmet need in the TED field in China[17]. - The NDA for IBI344 (Tazemetostat) was accepted by NMPA for patients with locally advanced or metastatic ROS1-positive NSCLC, with approval expected in 2024[29]. - IBI343, a novel CLDN18.2 antibody-drug conjugate, showed positive Phase 1 clinical results for gastric cancer treatment and received breakthrough therapy designation from NMPA[8]. - The company aims to expand its product portfolio to 12 by the end of 2024, including two targeted therapies for NSCLC expected to be approved in the second half of the year[12]. Marketing and Sales - Sales and marketing expenses were RMB 1,879.4 million, accounting for 47.6% of total revenue, down from 49.9% in the previous year[3]. - The company is enhancing its marketing output and operational efficiency through resource allocation and effective management methods[13]. - The company is committed to creating sustainable shareholder value through its strong commercialization and R&D capabilities, as well as a promising late-stage pipeline[20]. Corporate Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[63]. - The company established a strategic clinical trial collaboration with ImmVirX Pty Limited to evaluate the combination therapy of its drug with ImmVirX's experimental oncolytic virus[39]. - The company will continue to review and monitor its corporate governance practices to ensure compliance and maintain high standards[63]. Financial Position and Assets - As of June 30, 2024, the company had cash and cash equivalents, structured products, and other financial assets totaling approximately RMB 10.112 billion[14]. - Total current assets as of June 30, 2024, were RMB 13,427.9 million, an increase from RMB 11,048.7 million as of December 31, 2023[54]. - Total liabilities as of June 30, 2024, were RMB 8,099.8 million, compared to RMB 7,869.3 million as of December 31, 2023[54]. - The company had unused long-term bank loan facilities of approximately RMB 2,080.5 million as of June 30, 2024[55]. Employee and Operational Metrics - As of June 30, 2024, the company had a total of 5,263 employees, an increase from 4,872 employees as of December 31, 2023, with over 1,000 in R&D and over 3,000 in sales and marketing[61]. - The total salary cost for the six months ended June 30, 2024, was RMB 1,391.6 million, compared to RMB 1,358.8 million for the same period in 2023, reflecting an increase of approximately 2.4%[61]. - There were no significant labor disputes or recruitment difficulties encountered by the company during the reporting period[61].