报告指，集团2025年上半年业绩符合预期，持续经营业务收入同比增长82%至5.19亿美元，经调整净利 润增长510%至1.78亿美元。集团上调生命科学板块全年收入增速指引至13-15%，对应下半年增速15- 18%。 智通财经APP获悉，交银国际发布研报称，上调金斯瑞生物科技(01548)2025-27年收入1-5%，但考虑到 2025年上半年传奇生物账面净亏损仍较大，下调2025年净利润预测。该行将SOTP模型滚动至2026年， 各业务板块目标估值倍数保持不变，维持目标价28.75港元及"买入"评级。 ...

Core Viewpoint - King’s Ray Biotechnology achieved a significant turnaround in profitability for 2024, reporting a net profit of approximately $2.962 billion, compared to a loss of $95.477 million in 2023, primarily due to accounting changes and a one-time gain from the merger cancellation with Legend Biotech [1][3] Financial Performance - The company reported revenues of approximately $594.5 million for 2024, a 6.1% increase from $560.5 million in the previous year [1] - Adjusted net profit from ongoing operations was approximately $59.8 million, reflecting a modest growth of 2.9% compared to $58.1 million in the prior year [3] Business Segments - The life sciences segment, which constitutes about 75.8% of total revenue, saw a revenue increase of 10.2%, driven by enhanced brand presence in Europe and the U.S. and the introduction of new competitive services and products [4] - The biopharmaceutical development services segment underperformed, with external revenue accounting for 14.8% of total revenue, declining by 13.2% to approximately $95.0 million, and adjusted operating losses widening by 46.1% to about $43.4 million [5] Financial Structure - The company's debt-to-asset ratio improved significantly from 39.65% to 18.09%, indicating a stronger financial structure [7] - The current ratio decreased from 4.76 to 2.72, remaining at a relatively safe level [7] Cash Flow and Management - The company reported a negative cash flow per share of -$0.61, worsening from $0.20 in the previous year, while operating cash flow per share improved slightly from -$0.14 to $0.04 [7] - The accounts receivable conversion cycle improved from 69 days to 59 days, indicating better management of customer payments, although the accounts payable conversion cycle decreased significantly from 21 days to 12 days, potentially straining cash flow management [7]

Core Viewpoint - CICC maintains its earnings forecast for King’s Ray Biotechnology (01548) for 2025 and 2026, reiterating an outperform rating, while raising the target price by 22.2% to HKD 21.50, indicating a 21.3% upside from the current stock price [1] Group 1: Financial Performance - For 1H25, the company reported revenue of USD 519 million, a year-on-year increase of 81.9%, with adjusted net profit of USD 178 million, corresponding to a net profit margin of 34.3% [2] - The gross profit was USD 321 million, with a gross margin of 61.8%, reflecting improved profitability driven by capacity utilization, economies of scale, and high-end product upgrades [2] - The net loss attributable to shareholders was USD 25 million, significantly narrowed year-on-year, primarily due to a USD 194 million loss from the investment in Legend Biotech [2] Group 2: Business Segments - The life sciences segment achieved revenue of USD 250 million in 1H25, up 11.3% year-on-year, driven by protein business growth of 52% and demand from gene editing and AI-related R&D [3] - The CDMO segment saw revenue of USD 250 million, a remarkable increase of 511.1%, with a one-time payment of USD 214 million from the licensing agreement with Lixin contributing to this growth [4] - The industrial synthetic biology segment reported revenue of USD 39 million, an 8.4% increase year-on-year, with losses attributed to increased R&D investments [5]

Core Viewpoint - CICC maintains its earnings forecast for Kingser Bio-Tech (01548) for 2025 and 2026, reiterating an outperform rating while raising the target price by 22.2% to HKD 21.50, indicating a potential upside of 21.3% from the current stock price [1] Group 1: Financial Performance - For 1H25, the company reported revenue of USD 519 million, a year-on-year increase of 81.9%, with adjusted net profit of USD 178 million, corresponding to a net profit margin of 34.3% [2] - The gross profit was USD 321 million, resulting in a gross margin of 61.8%, reflecting improved profitability driven by capacity utilization and product mix upgrades [2] - The net loss attributable to shareholders was USD 25 million, significantly narrowed from the previous year, primarily due to a loss of USD 194 million from the associate Legend Biotech [2] Group 2: Business Segments - The Life Sciences segment achieved revenue of USD 250 million in 1H25, up 11.3% year-on-year, driven by protein business growth of 52% and demand for gene editing and AI-related R&D [3] - The CDMO segment saw revenue of USD 250 million, a remarkable increase of 511.1%, with significant contributions from a one-time payment of USD 214 million related to the licensing of Lixin [4] - The Industrial Synthetic Biology segment reported revenue of USD 39 million, an 8.4% increase, although it faced an adjusted operating loss of USD 58,000 due to increased R&D investments [5] Group 3: Strategic Initiatives - The company is focusing on enhancing its global presence and market position through continuous investment in R&D and sales efforts, which has slightly impacted short-term profitability [3][5] - The CDMO segment is expected to achieve key milestones, including potential licensing transactions by the end of 2025 to early 2026 [4] - The Industrial Synthetic Biology segment's innovative product, sweet protein, has received FDA GRAS recognition, with commercial production facilities expected to be operational by mid-2026 [5]

Group 1 - The Hong Kong stock market experienced a rise and then a pullback, with the Hang Seng Index reaching a new high [1] - The National Healthcare Security Administration is publishing a list of drugs that have passed preliminary review for the "2025 National Medical Insurance Directory and Commercial Insurance Innovative Drug Directory," which will enter expert review and negotiation stages [1][2] - The Hong Kong Innovative Drug Selected ETF (520690) saw a nearly 2.5% increase, with a trading volume exceeding 20 million and a turnover rate over 5%, indicating strong market interest [1] Group 2 - The dual-track policy of basic medical insurance and commercial insurance for innovative drugs signals a payment closure model, suggesting that "true innovation is easier to scale" [2] - The performance of innovative drugs is expected to be positively impacted by the dual-track payment system and significant business development opportunities, leading to a systematic revaluation of the Chinese innovative drug sector [2] - The Hang Seng Medical ETF (513060) is benefiting from the dual advantages of technology penetration and market expansion, particularly in AI healthcare and innovative drug companies [3]

Core Insights - Kingsray Biotechnology reported a significant increase in revenue for the six months ending June 30, 2025, with total revenue reaching $519 million, representing a year-on-year growth of 81.92% [1] - The loss attributable to the parent company narrowed to $25.462 million, a reduction of 85.46% compared to the previous period [1] Revenue Breakdown - Revenue from life sciences services and products was approximately $248 million, reflecting a year-on-year increase of 11.3% [1] - Adjusted gross profit was about $126 million, showing a year-on-year growth of 5.3%, although the adjusted gross margin slightly decreased to 51.0% [1] Profitability and Investment - Adjusted operating profit was approximately $46.4 million, which saw a slight decline compared to the previous period [1] - The growth in revenue and adjusted gross profit was primarily driven by platform innovations and automation upgrades, such as protein and gene editing platforms, improved operational efficiency at production bases, and increased customer engagement [1] - The decrease in adjusted operating profit was attributed to increased investments in marketing transformation and research and development to enhance long-term competitiveness [1]

Financial Data and Key Metrics Changes - The group's revenue increased by 81.9% year over year to approximately $519 million [43] - Adjusted profit from continuing operations grew significantly to about $178 million [43] - The net loss narrowed to approximately $24.5 million, largely affected by Legend Biotech's performance [43] Business Line Data and Key Metrics Changes - GenScript Life Science Group's revenue grew by 11.3% to about $248 million [45] - ProBio's revenue surged by 511% to around $402 million [43] - Bestzyme's revenue increased by 8.4% to $28.3 million [43] Market Data and Key Metrics Changes - Revenue from industry customers, particularly pharma, increased due to the development of more M&D companies [45] - Revenue from the Americas and European markets grew, thanks to the successful execution of the global market strategy [48] Company Strategy and Development Direction - The company is focused on expanding market penetration for protein, mRNA, and cell and gene engineering [55] - Investments are being made in automation, capacity expansion, and digital transformation to enhance operational efficiency [55] - The company aims to leverage its global footprint to provide speed, reliability, and consistent delivery to customers [78] Management's Comments on Operating Environment and Future Outlook - Management noted that the geopolitical environment remains complex but the company delivered rapid growth [6] - There is confidence in achieving margin improvement through strategic investments and operational efficiencies [94] - The company anticipates a stronger growth trajectory in the second half of the year across all segments [45] Other Important Information - The company achieved significant ESG milestones, including an upgrade to AA in MSCI ESG ratings and inclusion in the FTSE4Good index [10] - The cash position stood at $970 million, supporting global expansion and R&D efforts [9] Q&A Session Summary Question: ProBio's fee for service and COGS trends - Management clarified that excluding the Lenovo collaboration impact, fee for service business achieved double-digit growth [62] Question: Bestzyme's product breakdown and growth expectations - Management indicated that new product launches and expanded sales personnel in key markets are expected to drive growth in the second half [65] Question: Future milestone payments from Lenovo collaboration - Management expects to recognize a milestone payment of $300 million in the second half, with further payments dependent on clinical trial progress [76] Question: Global expansion and long-term revenue contribution - Management emphasized the importance of a robust global footprint for flexibility and resilience, aiming for sustainable growth [78] Question: Tariff impact on profits - Management reported that tariffs had a low impact on profits, under $4 million, due to the nature of the business [85] Question: ProBio's order trends and backlog - Management noted steady growth in orders and a clear recovery in antibody and protein R&D, with a focus on active backlog management [88]

Financial Data and Key Metrics Changes - The group's revenue increased by 81.9% year over year to approximately $519 million [44] - Adjusted profit from continuing operations grew significantly to about $178 million [44] - The net loss narrowed to about $24.5 million, largely affected by Legend Biotech's performance [44] Business Line Data and Key Metrics Changes - GenScript Life Science Group's revenue grew by 11.3% to about $248 million [46] - ProBio's revenue surged by 511% to around $402 million [44] - Bestime's revenue increased by 8.4% to $28.3 million [52] Market Data and Key Metrics Changes - Revenue from the Americas and European markets grew due to successful execution of global market strategies [49] - The proportion of revenue from international customers for Bestime grew to 23% [52] Company Strategy and Development Direction - The company is focused on expanding market penetration for protein, mRNA, and cell and gene engineering [57] - There is a commitment to advancing CDMO platforms and exploring out-licensing opportunities to maximize R&D benefits [58] - The company is investing in automation and digital transformation to enhance operational efficiency [59] Management's Comments on Operating Environment and Future Outlook - Management anticipates stronger growth in the second half of the year, driven by increased demand and strategic investments [46][55] - The company is confident in achieving margin improvement through enhanced automation and capacity expansion [100] Other Important Information - The company achieved significant ESG milestones, including a silver medal from EcoVadis and an AA rating from MSCI [12] - The cash position stood at $970 million, supporting global expansion and R&D progress [10] Q&A Session Summary Question: ProBio's fee for service revenue and cost of goods sold - Management clarified that excluding the impact of the Lenovo case, fee for service business achieved double-digit growth, and costs were impacted by capacity ramp-up [63][64] Question: Bestime's product breakdown and growth expectations - Management noted that new enzyme products are expected to drive revenue growth in the second half, with confidence in the performance of innovative enzymes [66] Question: Future milestone payments from Lenovo - Management indicated that a milestone payment of $300 million is expected in the second half, with further payments dependent on clinical trial progress [80][82] Question: Global expansion and long-term revenue contribution - Management emphasized the importance of a robust global footprint to ensure speed and reliability for customers, which will support sustainable growth [83][84] Question: Impact of tariffs on profit - Management reported that tariffs had a low impact on profits, less than $4 million, due to the nature of the business and global capacity [90] Question: ProBio's order trends and backlog - Management observed steady growth in orders, with a clear recovery in antibody and protein R&D, and noted that backlog information is no longer disclosed [93][95] Question: Key drivers for Life Science guidance upgrade - Management attributed the guidance upgrade to strong demand momentum and deeper market penetration, while also addressing temporary gross margin impacts [98][100] Question: Future blockbuster products from Bestime - Management confirmed that new products have entered mass production and are expected to drive significant process optimization and cost reduction for clients [109] Question: AI-driven protein and canary business growth - Management highlighted the integration of advanced technology in AI-driven engineering, which plays a critical role in enhancing customer offerings [112]

Financial Performance - The Group's revenue from continuing operations reached $518.8 million, marking an impressive 81.9% year-over-year increase compared to H1 2024[5,65] - Adjusted net profit from continuing operations soared to $178.0 million, a substantial 509.6% increase compared to the $29.2 million in H1 2024[5,65] - GenScript revenue increased by 11.3% to $247.6 million[65,67] - ProBio experienced significant growth, with revenue reaching $246.9 million, a 511.1% increase[5,65,70] - Bestzyme's revenue grew by 8.4% to $28.3 million[65,73] GenScript Highlights - GenScript served over 42,000 customers in H1 2025, up from 39,000+ in H1 2024[18] - The number of scientific journals citing GenScript increased to over 112,000, compared to 100,000+ in H1 2024[18] - R&D functions account for approximately 10% of the 5700+ employees globally[6] ProBio Highlights - ProBio's cash position is $371.1 million[70] - 20 CDMO projects in H1 2025, with >50% from global customers[42] Bestzyme Highlights - Bestzyme's R&D expenses increased by 62%, from $2.9 million in H1 2024 to $4.7 million in H1 2025[59] - International revenue contribution increased, accounting for 23% of revenue in H1 2025 compared to 21% in H1 2024[73] Guidance - The company revised its revenue growth target for FY 2025 from 10%-15% to 13%-15%[78] - Bestzyme expects 20%-25% revenue growth with Adjusted GPM ~45%[78]

Core Viewpoint - Kingsray Biotechnology (01548) reported a significant increase in revenue and a reduction in losses for the six months ending June 30, 2025, indicating strong operational performance and strategic investments in innovation and marketing [1] Financial Performance - Revenue from continuing operations reached $519 million, an increase of 81.92% year-on-year [1] - Loss attributable to equity holders narrowed to $25.462 million, a reduction of 85.46% year-on-year [1] - Basic loss per share was 1.18 cents [1] Segment Performance - Revenue from life sciences services and products was approximately $248 million, up 11.3% from about $222 million in the previous period [1] - Adjusted gross profit was approximately $126 million, an increase of 5.3% from about $120 million [1] - Adjusted gross margin slightly decreased from 53.9% to 51.0% [1] - Adjusted operating profit decreased slightly from approximately $47.8 million to about $46.4 million [1] Growth Drivers - Revenue and adjusted gross profit growth were primarily driven by: - Platform innovation and automation upgrades, particularly in protein and gene editing platforms, leading to reliable, fast, and high-quality service and product delivery [1] - Enhanced operational efficiency at production bases in mainland China, Singapore, and the United States [1] - Targeted activities and brand revitalization efforts to improve customer engagement [1] - The decrease in adjusted operating profit was attributed to increased investments in marketing transformation and research and development activities aimed at building long-term competitiveness [1]