Group 1: MediaTek - MediaTek is expected to successfully transition from a traditional smartphone application processor supplier to a participant in the AI sector, starting with edge AI devices and expanding into AI-specific integrated circuits and smart automotive solutions [1] - Revenue and earnings CAGR is projected to reach 16% and 17% respectively from 2024 to 2027, with operating profit margin increasing from 19% in 2025 to 22% in 2027, driven by market share gains and demand for generative AI [1] Group 2: China Resources Land - China Resources Land is positioned for a recovery ahead of the industry due to lower debt and financing pressures, with contract sales growth expected to accelerate and market share in the primary housing market projected to increase by 2 percentage points to 5% by 2027 [2][17] - The average free cash flow yield from 2025 to 2027 is estimated at 11%, with an attractive valuation indicated by a price-to-book ratio of 0.4 for its development business [2][18] Group 3: Weichai Power - Weichai Power is anticipated to undergo a valuation reassessment due to improved cyclical prospects for heavy trucks and a more profitable engine product mix, with a projected P/E ratio of 10 times and a dividend yield of 6% by 2025 [3][8] - The company is expected to achieve a 18% CAGR in earnings per share over the next two years, supported by strong cash flow generation and increasing dividend payments [3][8] Group 4: Krafton - Krafton's strong performance in the PUBG series is identified as a key driver for profitability in 2025, overshadowing the early mixed feedback for the new game in development, inZoi [4] - The stock is currently trading near historical lows, with a projected P/E ratio of 12 times for 2025, indicating potential for market reassessment of its annual outlook [4]

今日港股回调，创新药再度逆市上涨！港股通创新药ETF（159570）强势大涨近3%，成交额继续爆量，盘中成交近5亿元！上周五成交额再度刷新历史，天 量成交16.49亿元！资金持续乐观，上周累计获资金净流入近2亿元，今日盘中再获净申购4300万份！ 港股通创新药ETF（159570）成分股多数飘红：乐普生物涨超12%，百济神州涨超5%，信达生物涨超3%，晶泰控股涨超2%，康方生物、药明生物、科伦博 泰生物涨超1%。 资金狂涌创新药，港股通创新药ETF（159570）近60日"吸金"近10亿元，融资余额保持历史高位，反映杠杆资金布局意愿！最新规模19.27亿元创上市新 高，1个月实现规模翻倍！ 【机构：医药见底回暖，创新药主线强化】 光大证券认为，医药行情见底回暖，优化集采政策有望稳定资产盈利能力。近期，医药行情整体已显现见底回暖迹象，从2025.1.2~2025.3.27期间，港股创 新药指数上涨26.28%，跑赢恒生科技1.20pp。2025年工作报告提出"优化药品集采政策"，有望优化产业竞争环境，仿制药利润压缩接近尾声，竞争格局趋于 稳定，龙头白马企业凭借技术壁垒与产能优势，盈利能力有望企稳。后集采时代，行 ...

Revenue Growth - Product revenue increased by $130.9 million (or 49%) to $397.6 million, driven by the sales growth of Weiwei Jia® since its launch in September 2023 and its inclusion in the national medical insurance catalog in January 2024 [4] - Total revenue for the year ended December 31, 2024, was $398.988 million, a significant increase of 49.5% compared to $266.719 million in 2023 [20] - Product revenue, net, reached $397.614 million, up from $266.719 million in the previous year, indicating strong growth in product sales [20] - Total product revenue for 2024 reached $423.855 million, a 42% increase from $298.911 million in 2023 [81] - The net revenue from the product "卫偉迦╱衛力迦" surged by 835% to $93.6 million in 2024 from $10.0 million in 2023 [180] Expenses and Losses - R&D expenses decreased by $31.4 million (or 12%) to $234.5 million, primarily due to the progress of existing research projects, partially offset by increased licensing fees [4] - Selling, general and administrative expenses increased by $17.1 million (or 6%) to $298.7 million, mainly due to increased general sales expenses from the launch of Weiwei Jia® and the sales growth of Nuo Zai Le® [4] - Net loss decreased by $77.5 million (or 23%) to $257.1 million, primarily due to product revenue growth outpacing net operating expenses, offset by decreased interest income and increased foreign exchange losses [4] - The net loss for 2024 was $257,103,000, a decrease from the net loss of $334,620,000 in 2023, representing a 23.2% improvement [21] - The comprehensive loss for 2024 was $244,214,000, compared to $322,679,000 in 2023, indicating a 24.4% reduction [21] Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $449.667 million, down from $790.151 million in 2023, indicating a reduction in liquidity [19] - The company reported a total cash and cash equivalents of $550,781,000 at the end of 2024, down from $791,264,000 at the end of 2023 [23] - Cash flow from operating activities showed a net cash outflow of $214,869,000 in 2024, compared to $198,178,000 in 2023, reflecting a 8.4% increase in cash outflow [23] - Cash, cash equivalents, and restricted cash amounted to $550.8 million as of December 31, 2024, including $531.0 million in USD [194] Assets and Liabilities - Total assets increased to $1.185753 billion in 2024 from $1.036295 billion in 2023, showing overall growth in the company's asset base [19] - Total liabilities rose to $344.855 million in 2024, compared to $240.177 million in 2023, indicating increased financial obligations [19] - Shareholders' equity increased to $840.898 million in 2024 from $796.118 million in 2023, reflecting a positive trend in equity position [19] - The company reported a decrease in accumulated deficit to $2,453,083,000 in 2024 from $2,195,980,000 in 2023, reflecting ongoing financial challenges [22] Research and Development - Research and development expenses totaled $234.504 million, a decrease from $265.868 million in the prior year, suggesting a focus on efficiency [20] - Clinical project expenses were $86,126, down from $112,158, indicating a reduction of approximately 23.2% year-over-year [138] - The investment in R&D and operational expenses continues to drive significant losses, with a focus on long-term development of quality candidates [165] - The company has multiple candidates in late-stage clinical development, with the ability to generate revenue dependent on obtaining regulatory approvals [174] Stock and Equity - Basic and diluted loss per share was $0.26, a decrease of 25% from $0.35 [4] - The weighted average number of shares outstanding increased to 989,477,730 in 2024 from 966,394,130 in 2023, reflecting potential dilution effects [20] - The company granted 20,947,480 stock options in 2024, with an average exercise price of $1.69 [108] - The total intrinsic value of stock options exercised in 2024 was approximately $9.4 million, compared to $20.3 million in 2023 [108] Collaborations and Agreements - The company has entered into a licensing agreement with Seagen for the development and commercialization of Tisotumab Vedotin (TIVDAK) in Greater China, with potential milestone payments up to $258 million [122] - A collaboration and licensing agreement with Yilian Biopharmaceuticals was established for the global exclusive rights to develop and commercialize DLL3-targeted ADC compounds, with potential milestone payments up to $592 million [124] - The company recorded a milestone expense of $12.0 million related to sales for the collaboration agreement with GSK for Niraparib in 2023 [113] Financial Instruments and Accounting - The company operates under US GAAP for its consolidated financial statements, ensuring compliance with important accounting policies [27] - The company applies ASC 606 for revenue recognition, confirming revenue when control of goods or services is transferred to customers [49] - The company recognizes lease liabilities and right-of-use assets at the commencement date of the lease, measuring lease liabilities at the present value of future fixed lease payments [39] Market and Future Outlook - The company expects revenue growth from existing and recently launched commercialized products to continue into 2025 [167] - The company plans to continue its market expansion efforts and explore new product development opportunities [139] - Strategic collaborations have been established with Yilian Bio and Vertex to enhance the product pipeline and leverage new therapeutic developments [168]

Group 1 - Zai Lab Limited (NASDAQ: ZLAB) has seen its share price increase by over 105% on a 12-month basis and nearly 50% year-to-date [2] - The company markets and sells seven drugs developed by US and European pharmaceutical companies [2] - The investing group Haggerston BioHealth provides insights for both novice and experienced biotech investors, including catalysts, buy and sell ratings, product sales forecasts, and integrated financial statements [2] Group 2 - Edmund Ingham, a biotech consultant with over 5 years of experience, has created detailed reports on more than 1,000 companies in the biotech, healthcare, and pharma sectors [2]

Zai Lab Limited (NASDAQ: ZLAB ) continues to develop treatments for oncology, autoimmune disorders, infectious diseases, and neurological conditions. In my view, their most important value driver today is Vyvgart for generalized myasthenia gravis [gMG], which showed significant revenue growth in 2024. Also, the recent approval in ChinaMy name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degre ...

Investment Rating - The report assigns a "Buy" rating to Zai Lab (ZLAB US) with a target price of US$62.32, indicating an upside potential of 80% from the current price of US$34.64 [1]. Core Insights - The company is expected to experience significant revenue growth, with a projected revenue of US$5.60-5.90 billion for 2025, following a strong performance in 2024 where revenue reached US$399 million, a 50% year-over-year increase [3][8]. - The inclusion of key products in the National Reimbursement Drug List (NRDL) has driven rapid revenue growth, particularly for Weiqijia and Weilian, which achieved sales of US$93.6 million in 2024 [4]. - The company has effectively controlled expenses, with R&D spending decreasing by 11.6% to US$235 million in 2024, contributing to improved operational efficiency [5][8]. Financial Summary - The financial projections for Zai Lab are as follows: - Revenue (US$ million): 2022A: 215, 2023A: 267, 2024E: 398, 2025E: 562, 2026E: 920 [7]. - Gross Profit (US$ million): 2022A: 141, 2023A: 171, 2024E: 259, 2025E: 364, 2026E: 593 [7]. - Net Profit (US$ million): 2022A: (443), 2023A: (334), 2024E: (307), 2025E: (205), 2026E: 22 [7]. - Earnings per Share (US$): 2022A: (4.63), 2023A: (3.42), 2024E: (3.13), 2025E: (2.10), 2026E: 0.22 [7].

Core Viewpoint - Zai Lab Limited (ZLAB) has seen a 15.9% increase in share price over the past four weeks, closing at $31.73, with a potential upside of 64.4% based on Wall Street analysts' mean price target of $52.17 [1] Price Targets - The average price target consists of six estimates ranging from a low of $25 to a high of $74, with a standard deviation of $17.94, indicating variability among analysts [2] - The lowest estimate suggests a decline of 21.2% from the current price, while the highest indicates a potential upside of 133.2% [2] - A low standard deviation signifies a higher agreement among analysts regarding price movement direction [7] Analyst Sentiment - Analysts are optimistic about ZLAB's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 29.6%, with two estimates moving higher and no negative revisions [10] - ZLAB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [5] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [8][12]

Financial Data and Key Metrics Changes - Total revenue for 2024 grew 50% year-on-year, with a remarkable 66% growth in Q4 [9][16] - Loss from operations improved by 45% in Q4 and 23% for the full year [14][57] - Cash position at the end of the quarter was $879.7 million, supporting future growth [14][58] Business Line Data and Key Metrics Changes - VYVGART generated $93.6 million in sales for 2024, marking a successful launch [9][17] - ZEJULA and NUZYRA also contributed to revenue growth, with ZEJULA being the leading PARP inhibitor for ovarian cancer in China [27][31] - New product launches, including VYVGART Hytrulo, AUGTYRO, and XACDURO, are expected to drive future revenue [30][31] Market Data and Key Metrics Changes - VYVGART's market penetration in China is currently under 10%, indicating significant growth potential [24] - Approximately 170,000 gMG patients in China present a large market opportunity for VYVGART [24] - The upcoming update to national gMG guidelines in mid-2025 is expected to enhance VYVGART's market position [25] Company Strategy and Development Direction - The company aims for a five-year CAGR of 50% through 2028, with a target of reaching $2 billion in revenue by 2028 [8][14] - Focus on advancing a global pipeline with multiple product launches and regulatory submissions planned for 2025 [10][12] - Emphasis on optimizing cost structure while investing in key growth drivers [13][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability by Q4 2025, supported by strong revenue growth and operational efficiency [14][59] - The company is positioned at a major value inflection point, with a commitment to innovation and execution excellence [14][32] - Anticipated strong performance across brands, particularly VYVGART, ZEJULA, and NUZYRA, in 2025 [31] Other Important Information - The company has made significant advancements in its global pipeline, including promising results for ZL-1310 in small cell lung cancer [34][35] - Regulatory discussions for accelerated approval of ZL-1310 are ongoing, with plans to initiate pivotal studies [38][74] - The company is actively exploring additional indications for its products to maximize patient benefit [12][39] Q&A Session Summary Question: Regarding 2025 revenue guidance and potential growth products - Management highlighted ZEJULA and NUZYRA as key growth drivers alongside VYVGART, with expectations for strong performance across all brands [63] Question: Growth trajectory for VYVGART in 2025 - Management expects stronger growth in the second half of 2025, driven by new patient starts and updates to treatment guidelines [70] Question: Regulatory strategy for DLL3 and pivotal study plans - Management confirmed plans to start a pivotal study this year, with confidence in achieving accelerated approval [74] Question: Observations on CIDP and KarXT's commercial potential - Management noted limited impact from CIDP in 2025 due to lack of NRDL listing, focusing on gMG instead [98] - Excitement about KarXT's potential in schizophrenia treatment, with plans for a dedicated sales force [100] Question: Strategy for povetacicept and key catalysts for 2025 - Management indicated participation in global trials for povetacicept, aiming for accelerated approval [121] - Key catalysts include data updates for DLL3 assets and regulatory submissions for bemarituzumab [126]

February 2025 Fourth Quarter and Full Year 2024 Financial Results and Recent Corporate Updates NASDAQ:ZLAB | HKEX:9688 © 2025. Zai Lab. All Rights Reserved. Forward-Looking Statements This presentation contains forward-looking statements, including statements relating to our strategy and plans; potential of and expectations for our business, commercial products, and pipeline programs; our goals, objectives, and priorities and our expectations under our growth strategy (including our expectations regarding o ...

Financial Performance - Total revenue for Q4 2024 reached $109.1 million, representing a 66% year-over-year growth[7] - Total revenue for the full year 2024 was $399 million, reflecting a 50% increase compared to the previous year[7] - The company projects full-year revenue for 2025 to be between $560 million and $590 million[7] - In Q4 2024, product revenue reached $108.5 million, a 65% increase from $65.8 million in Q4 2023; for the full year 2024, product revenue was $397.6 million, up 49% from $266.7 million in 2023[2] - The revenue from Weiwei Jia in Q4 2024 was $30 million, significantly up from $5.1 million in Q4 2023; for the full year, revenue was $93.6 million, compared to $10 million in 2023[2] - The revenue from Zele in Q4 2024 was $48.4 million, a 16% increase from $41.6 million in Q4 2023; for the full year, revenue was $187.1 million, up 11% from $168.8 million in 2023[2] - The revenue from Niuzainuo in Q4 2024 was $11 million, an 81% increase from $6.1 million in Q4 2023; for the full year, revenue was $43.2 million, up 99% from $21.7 million in 2023[2] - Product revenue from Efgartigimod (艾加莫德) for Q4 2024 was $30 million, with full-year sales reaching $93.6 million[7] - Total revenue for 2025 is projected to be between $560 million and $590 million[15] Operating Loss and Expenses - Operating loss for Q4 2024 was $67.9 million, a 45% decrease year-over-year, while the full-year operating loss was $282.1 million, down 23%[7] - The adjusted operating loss for Q4 2024 was $47.6 million, compared to $124 million in Q4 2023; for the full year 2024, the adjusted operating loss was $199.6 million, down from $366.6 million in 2023[13] - R&D expenses in Q4 2024 were $52.3 million, down from $81.9 million in Q4 2023; for the full year, R&D expenses were $234.5 million, compared to $265.9 million in 2023[2] - SG&A expenses in Q4 2024 were $82.6 million, consistent with Q4 2023; for the full year, SG&A expenses were $298.7 million, up from $281.6 million in 2023[2] Cash and Financial Position - Cash and cash equivalents totaled $879.7 million as of December 31, 2024, compared to $806.5 million as of December 31, 2023[13] - Cash and cash equivalents decreased to $449.67 million in 2024 from $790.15 million in 2023[39] - Total assets increased to $1.19 billion in 2024, compared to $1.04 billion in 2023[39] - The company has significantly improved its financial position, reducing operating losses and targeting non-GAAP operating profit by Q4 2025[8] - The company has a strong cash reserve, enabling continued investment in high-impact growth opportunities[8] - The company’s total liabilities rose to $344.86 million in 2024, up from $240.18 million in 2023[39] - The company’s capital surplus increased to $3.26 billion in 2024 from $2.98 billion in 2023[39] Clinical Development and Product Pipeline - Early clinical data for ZL-1310 (DLL3 ADC) in a global Phase 1 study showed an overall response rate (ORR) of 74%, indicating its potential as a first-in-class and best-in-class therapy for small cell lung cancer (SCLC)[7] - The company aims to accelerate clinical development of its pipeline, including ZL-1310 for SCLC and other ADCs, with global Phase 1 studies underway[14] - The NDA for KarXT, a treatment for schizophrenia, has been accepted by the National Medical Products Administration (NMPA) in China[7] - The company plans to commercialize potential blockbuster products such as Bemarituzumab for gastric cancer and KarXT for schizophrenia[14] - ZL-1310 received orphan drug designation from the FDA for SCLC treatment, with potential for a 7-year market exclusivity upon approval[19] - The PANOVA-3 trial for TTFields in pancreatic cancer achieved significant median overall survival improvement, with plans to submit a marketing application in China in H2 2025[19] - The company plans to submit a New Drug Application (NDA) for Vtama in Q1 2025, targeting recurrent or metastatic cervical cancer[19] - The company is preparing to submit supplemental NDAs for Repotrectinib in H1 2025 for NTRK-positive solid tumors[19] - The company will announce updated clinical data for ZL-1310 in SCLC at major medical conferences in 2025[26] Strategic Collaborations and Partnerships - Strategic collaborations include a partnership with Ilyang Biopharma for the development of ZL-6201, a novel LRRC15 ADC for specific solid tumors[15] - The company has secured licensing agreements for povetacicept and ZL-1108 in Greater China and Singapore, targeting IgAN and thyroid eye disease respectively[15] - Amgen, a partner of Zai Lab, will announce Phase 3 study data for FORTITUDE-101 in the first half of 2025, focusing on bemarituzumab combined with chemotherapy for first-line treatment of gastric cancer[27] - Amgen will also announce Phase 3 study data for FORTITUDE-102 in the second half of 2025, exploring bemarituzumab combined with chemotherapy and nivolumab versus chemotherapy combined with nivolumab for gastric cancer[27] - Zai Lab is participating in the Phase 3 study ADAPT-SERON for seronegative gMG, with results expected to be announced by partner Argenx[27] - Zai Lab will announce key results from a Phase 2 study for lupus nephritis (LN)[27] Company Vision and Market Position - The company aims to achieve $2 billion in revenue by 2028, driven by Efgartigimod and other potential blockbuster products[8] - The company is focused on addressing unmet medical needs in oncology, immunology, neuroscience, and infectious diseases through innovative product discovery and commercialization[31] - Zai Lab is listed on NASDAQ under the ticker ZLAB and on the Hong Kong Stock Exchange under stock code 9688[31] - The company emphasizes the importance of non-GAAP financial metrics to provide a clearer view of operational performance and financial results[33] - Forward-looking statements include expectations regarding commercialization, clinical development, and potential product benefits, but actual results may differ significantly due to various factors[35]