Investment Rating - The report assigns a "Buy" rating for Kingsray Biotechnology (01548) as part of its initial coverage [2][4][6]. Core Insights - Kingsray Biotechnology has shown strong growth in its cell therapy segment, with external revenue reaching $280 million in the first half of 2024, a year-on-year increase of 156%. The CARVYKTY product is expected to continue rapid growth due to expanding indications and capacity release [3][4]. - The life sciences business is developing steadily, with revenue from life sciences services and products reaching $222.4 million, a 9.6% year-on-year increase. The adjusted gross margin remains stable at 54% [3][4]. - The company is projected to achieve revenues of $1.189 billion, $1.881 billion, and $2.950 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 42%, 58%, and 57% [4][5]. Summary by Sections Financial Performance - In the first half of 2024, Kingsray Biotechnology reported revenue of $561.4 million, a 43.5% increase year-on-year. The net loss was $216 million, a reduction of $30 million compared to the previous year [2][3]. - The cell therapy division's revenue accounted for 49.9% of total revenue, with CARVYKTY generating net sales of $343 million [3][4]. Growth Potential - The CARVYKTY product has received approvals for use in specific patient populations, which is expected to significantly increase the addressable market. The production capacity is also set to ramp up with new facilities coming online [3][4]. - The report highlights the strong growth in the enzyme business, with revenue from the feed enzyme segment increasing by approximately 42% and industrial enzyme revenue growing by about 39% [3][4]. Valuation Metrics - The projected earnings per share (EPS) for 2024 is expected to be -$0.08, improving to $0.02 in 2025 and $0.11 in 2026. The price-to-earnings (P/E) ratio is projected to be 103.70 in 2025 and 13.78 in 2026 [5][6].

Investment Rating - The report maintains a "Buy" rating for the company, citing the potential for continued growth in its cell therapy business and expected improvements across other segments in the second half of the year [3][5] Core Views - The company reported H1 2024 revenue of $561 million, a 43.5% YoY increase, driven by strong performance in the cell therapy segment, which grew 156.0% YoY to $281 million [2] - Non-cell therapy revenue remained flat at $281 million, while the company narrowed its net loss to $216 million from $246 million in the same period last year [2] - The life sciences segment grew 10% YoY to $222 million, with protein-related revenue increasing 30% due to synergies between gene synthesis and protein/antibody businesses [3] - The CDMO segment saw a 38% YoY decline in revenue to $40.4 million, with adjusted gross margins dropping 15 percentage points to 14.7%, attributed to reduced capacity utilization and pricing pressures [3] - The cell therapy segment, led by subsidiary Legend Biotech, achieved $281 million in revenue, with CARVYKTI® sales reaching $343 million, an 81.5% YoY increase [3] Financial Projections - Revenue is projected to grow from $1.156 billion in 2024E to $3.057 billion in 2026E, with a CAGR of 37.7% from 2024E to 2026E [4] - Net profit is expected to improve significantly, from a loss of $256 million in 2024E to a profit of $350 million in 2026E [4] - EPS is forecasted to turn positive by 2025E, reaching $0.16 by 2026E [4] Business Segment Analysis - Life Sciences: Expected to grow 10%-15% YoY in 2024, with protein-related businesses driving growth [3] - CDMO: Revenue is projected to decline 10%-15% for the full year, but new order trends suggest a better second half [3] - Cell Therapy: CARVYKTI®'s approval for second-line treatment of multiple myeloma is expected to further expand its market potential [3] Valuation and Market Data - The company's current market cap is HKD 28.306 billion, with a share price of HKD 13.30 [5][6] - The stock has a 3-month turnover rate of 75.0% and has traded between HKD 7.43 and HKD 24.95 over the past year [6]

Investment Rating - The report maintains a "Buy" rating for the company, King’s Ray Bio (1548 HK), with a target price of HKD 28.75, indicating a potential upside of 122.9% from the current closing price of HKD 12.90 [6][7]. Core Insights - The non-cell therapy business of King’s Ray Bio is expected to stabilize and improve starting from the second half of 2024, driven by a recovery in new orders and robust growth in life sciences services [1][2]. - The company has adjusted its revenue and profit forecasts to reflect a more cautious outlook for the non-cell therapy business while being optimistic about the sales potential of Carvykti [2][3]. - The report highlights a significant increase in revenue from the life sciences segment, which grew by 10% year-on-year, and a notable 44% increase in revenue from the industrial enzyme segment [1][2]. Financial Forecast Adjustments - Revenue projections for 2024 have been adjusted to USD 1.230 billion, reflecting a decrease of 2.7% from previous estimates, while 2025 and 2026 projections have been increased by 4.5% and 2.4%, respectively [3]. - The gross profit for 2024 is forecasted at USD 667 million, with a gross margin of 54.2%, which is a decrease from the previous forecast of 55.8% [3]. - The adjusted net profit for 2024 is projected to be a loss of USD 165 million, improving to a profit of USD 65 million in 2025 and USD 190 million in 2026 [3][7]. Business Segment Performance - The life sciences services segment is valued using a P/E method with a target multiple of 15.0x, contributing significantly to the overall valuation of the company [5]. - The CDMO (Contract Development and Manufacturing Organization) business is under pressure in the short term, but new orders for protein/antibody drugs have shown recovery, indicating potential for future growth [2][3]. - The report emphasizes the importance of the company's strategic focus on innovation and capacity expansion in driving long-term growth [2][5].

Investment Rating - The report maintains a "Buy" rating for King’s Ray Biotechnology (1548.HK) [3][5] Core Insights - King’s Ray Biotechnology reported a revenue of $561 million for the first half of 2024, representing a year-on-year growth of 43.5%. The revenue from non-cell therapy decreased by 0.2% to $281 million, while cell therapy revenue surged by 156.0% to $280 million. The gross profit reached $307 million, up 75.4%, and the net loss narrowed to $216 million, with an adjusted net loss of $69 million [2] - The strong sales growth of CARVYKTI is attributed to ongoing market promotion and capacity expansion, with Q2 revenue reaching $186 million, a 60% increase year-on-year and an 18% increase quarter-on-quarter. The company expects to double CARVYKTI's production capacity compared to 2023 [2] - The life sciences segment generated $220 million in revenue, a 9.6% increase, with an adjusted gross profit of $120 million, up 8.5%. The rapid growth in the feed enzyme and industrial enzyme sectors was highlighted, with revenue from the feed enzyme segment increasing by 43.3% to $26.1 million [3] Financial Forecasts - The projected net profit for King’s Ray Biotechnology for 2024-2026 is estimated at -$63 million, $80 million, and $370 million respectively, with corresponding EPS of -$0.03, $0.04, and $0.17 [3][9] - Revenue is expected to grow significantly, with forecasts of $1.278 billion in 2024, $1.852 billion in 2025, and $2.987 billion in 2026, reflecting growth rates of 52.2%, 44.9%, and 61.3% respectively [9] - The gross margin is projected to improve from 48.78% in 2023 to 59.44% by 2026, indicating enhanced profitability [9] Operational Developments - The company is expanding its production capabilities with several key initiatives, including the launch of clinical production at the Novartis facility and the physical expansion of the New Jersey Raritan plant expected to be completed by the end of 2024 [2] - The CARTITUDE-5 clinical trial has successfully completed enrollment, and the CARTITUDE-4 trial's second interim analysis has shown positive overall survival data, further validating CARVYKTI's clinical efficacy and safety [2]

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [3][8][17] Core Insights - In the first half of 2024, Genscript Biotech reported revenue of $561 million, representing a 43.5% increase year-over-year. The non-cell therapy segment contributed $281 million (-0.2%), while the cell therapy segment saw a significant increase to $280 million (+156.0%). The net loss was reduced to approximately $216 million from a loss of $246 million in the previous period [5][17] - CARVYKTI's commercialization is progressing well, with net sales of $343 million in the first half of 2024. The company has received label expansion approvals from regulatory bodies, enhancing its market position [6][17] - The non-cell therapy segment is expected to see further profitability improvements due to technological innovations and operational efficiencies [6][17] Revenue and Profit Forecast - Revenue projections for Genscript Biotech are as follows: $1.44 billion in 2024 (+72%), $2.38 billion in 2025 (+65%), and $3.53 billion in 2026 (+48%). Net profit is expected to improve significantly, reaching $259 million in 2025 and $666 million in 2026 [10][13][14] - The cell therapy segment is projected to generate $820 million in revenue in 2024, with a substantial increase in profitability anticipated in subsequent years [8][10] Segment Analysis - The life sciences segment is expected to achieve $470 million in revenue in 2024, with a year-over-year growth rate of 14% and an adjusted operating profit of $94 million (+20%) [8][17] - The CDMO segment is forecasted to generate $95 million in revenue in 2024, reflecting a decline of 13% due to reduced demand and increased competition [8][17] - BestJet is projected to achieve $57 million in revenue in 2024, with a growth rate of 32% driven by market recovery and demand growth [8][17] Valuation - The total equity valuation of Genscript Biotech is estimated at $6.99 billion, translating to a target price of HK$25.61 per share based on a total share capital of 2.128 billion shares [8][17]

Investment Rating - The report maintains a "Buy" rating for GenScript Biotech (1548 HK) with a target price of HKD 26.04 [2][6] Core Views - GenScript Biotech's 1H24 revenue reached USD 561 million, a 43.5% YoY increase, with a net loss of USD 216 million, narrowing by USD 30 million YoY [2] - The cell therapy division contributed 50% of total revenue in 1H24, driven by CARVYKTI sales and milestone payments [2] - The non-cell therapy division saw a slight revenue decline of 0.2% YoY, with life sciences and synthetic biology showing growth, while CDMO faced challenges [2] - The report forecasts a turnaround in net profit, with expected figures of -USD 118 million, USD 146 million, and USD 596 million for 2024E, 2025E, and 2026E, respectively [2] Cell Therapy Division - CARVYKTI sales are expected to improve in 2H24 due to expanded indications and increased production capacity [3] - The company anticipates reaching an annual production capacity of 10,000 cases by the end of 2025, supported by new facilities and partnerships [3] - R&D expenses for the cell therapy division are expected to peak in 2024 [3] Non-Cell Therapy Division - Life sciences revenue grew by 9.6% YoY in 1H24, with adjusted operating profit increasing by 23.8% [4] - CDMO revenue declined by 43% YoY due to market competition and funding challenges, with a full-year guidance of -15% to -10% revenue growth [4] - Synthetic biology revenue surged by 43.4% YoY, driven by strong demand for feed and industrial enzymes [4] Valuation - The report values GenScript Biotech at HKD 55.4 billion using the SOTP method, with HKD 24.9 billion attributed to the non-cell therapy division and HKD 30.5 billion to the cell therapy division [10][11][13] - The non-cell therapy division is valued at a 5.25x PS multiple, reflecting a 20% discount to comparable companies [11] - The cell therapy division's valuation is based on a 20% discount to Legend Biotech's Nasdaq market capitalization, considering GenScript's 48% stake [13] Financial Forecasts - Revenue for 2024E, 2025E, and 2026E is projected at USD 1.17 billion, USD 1.82 billion, and USD 3.02 billion, respectively [2][8] - Adjusted EBITDA is expected to turn positive in 2025E, reaching USD 382 million, and further increasing to USD 1.44 billion in 2026E [15] - The company's ROE is forecasted to improve significantly, from -5.81% in 2024E to 15.06% in 2026E [15]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 Genscript Biotech Corporation （於開曼群島註冊成立的有限公司） （股份代號：1548） 截至二零二四年六月三十日止六個月 之未經審核合併中期業績公告 | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Investment Rating - The report assigns a "Buy" rating to King’s Ray Biotech (1548 HK) with a target price of 27.75 HKD, indicating a potential upside of 122.4% [5]. Core Insights - King’s Ray and its subsidiary Legend Biotech reported a narrower loss for 1H24, which was below expectations. King’s Ray's revenue is projected to grow between 29.1% to 50.6%, reaching approximately 505 to 590 million USD, while the net loss (non-attributable) is expected to narrow to 213 to 226 million USD compared to 246 million USD in 1H23. The adjusted net loss, excluding non-recurring items, is anticipated to significantly decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23, also better than expectations [1][2]. Summary by Sections Financial Performance - King’s Ray's revenue growth is projected at 29.1% to 50.6%, reaching 505 to 590 million USD. The net loss is expected to narrow to 213 to 226 million USD, down from 246 million USD in 1H23. The adjusted net loss is forecasted to decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23 [1]. - Legend Biotech is expected to report a net loss of 75 to 87 million USD, with an adjusted net loss of 95 to 110 million USD, significantly reduced from a net loss of 311 million USD in 1H23 [1]. Business Segments - The non-cell therapy business of King’s Ray is expected to generate revenue of approximately 260 to 350 million USD in 1H24, aligning with market expectations. The life sciences services segment is anticipated to achieve a growth rate of 15-20% for the full year [2]. - R&D expenses are projected to increase by 8-25% to 225 to 260 million USD, primarily for ongoing development activities related to ciltacel and solid tumor projects [1]. Future Outlook - The adjusted net loss for King’s Ray in 2H24 is expected to further narrow year-on-year and quarter-on-quarter, with a target of achieving overall breakeven by 2025 [2].

Financial Data and Key Metrics Changes - The company has not disclosed specific financial data or key metrics changes in the provided content [1][2] Business Line Data and Key Metrics Changes - The cell therapy business has shown significant clinical results, with 94% of patients achieving complete remission after treatment with the product Conviction, indicating strong potential for future Phase III trials [3][4] - In a subgroup analysis for second-line patients, the risk of disease progression was reduced by 65% compared to standard therapy, with a 73% reduction in high-risk patients [6][7] Market Data and Key Metrics Changes - The company has not provided specific market data or key metrics changes in the provided content [1][2] Company Strategy and Development Direction and Industry Competition - The company aims to expand its global footprint and enhance product and service competitiveness, focusing on research and development to create more valuable products for customers [19][20] - The management emphasizes compliance and providing high-quality products to meet unmet clinical needs as key strategies for overcoming challenges in the international market [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the external environment's uncertainties but expresses confidence in the company's ability to adapt and continue growth [17][18] - The company is actively increasing resources in government relations, public relations, and legal compliance to address inquiries from the U.S. House of Representatives [15][16] Other Important Information - The company has over 300 patents and more than 900 patents pending, highlighting its commitment to intellectual property [12] - The company has established production facilities in various locations, including mainland China, Singapore, and New Jersey, to better serve global customers [14] Q&A Session Summary Question: Will there be adjustments or upgrades to the business model due to external uncertainties? - Management reiterated its commitment to expanding global operations and enhancing product competitiveness without any changes to its long-term development strategy [18][19] Question: Has there been any discussion regarding the stock prices of subsidiaries and potential buybacks? - Management noted that both cell therapy and non-cell therapy businesses are experiencing rapid growth and significant potential profitability, which is not fully reflected in current market prices [20][21] Question: What is the current status of the collaboration with Legend Biotech and any potential impacts on synergies? - Management confirmed that all business operations and collaborations are proceeding normally without any changes [22][23] Question: What are the key considerations for clients in different business segments? - Management stated that clients prioritize delivery quality, speed, and price, which remain consistent across all service offerings [25][26]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 27.75, indicating a potential upside of 156.0% from the current price of HKD 10.84 [3][12]. Core Insights - The approval of Carvykti for a new indication in multiple myeloma (MM) is expected to drive significant sales growth, with sales in Q1 2024 reaching USD 157 million, a year-on-year increase of 118.1% [1]. - The company aims to ramp up production capacity to 10,000 doses by the end of 2025, with new production facilities expected to come online in late 2024 and 2H 2025 [1]. - The report highlights the potential for the CDMO segment to outperform expectations due to a recovering financing environment, with a projected revenue growth of 15-20% for the life sciences services segment [1][2]. Financial Summary - Revenue projections for the company are revised slightly downwards for 2024 and 2025 to USD 1.265 billion and USD 1.684 billion, respectively, but long-term sales forecasts for Carvykti have been increased to a peak sales estimate of USD 6.5 billion [2][3]. - The company is expected to achieve a net profit of USD 13 million in 2025, with a significant turnaround from a projected loss of USD 126 million in 2024 [3][13]. - The report provides a detailed financial forecast, indicating a revenue growth of 50.6% in 2024 and 33.1% in 2025 [3][13]. Business Segments and Valuation - The report outlines the valuation of different business segments, with the cell therapy segment being the most valuable at USD 10.783 billion, accounting for 69% of the total company valuation [9]. - The life sciences services segment is valued at USD 1.312 billion, while the CDMO segment is valued at USD 1.056 billion [9]. - The overall target valuation for the company is set at USD 7.554 billion, translating to a target price of HKD 27.75 per share [9].