Zhi Tong Cai Jing·2025-08-28 09:12Core Viewpoint - The report from CMB International indicates that Rongchang Biologics (09995) is making significant progress in the research and development of its core products both domestically and internationally, particularly with its drug Taitasip for the treatment of Sjögren's syndrome, which has reached its primary endpoint in the domestic Phase III study and is expected to submit a market application in the second half of the year [1] Financial Performance - Rongchang Biologics experienced strong sales growth in the second quarter, with revenue increasing by 47.6% year-on-year [1] - The gross margin improved by 7.3 percentage points compared to the same period last year, reaching 84.4% [1] - The company recorded a loss of 195 million RMB, which has narrowed both year-on-year and quarter-on-quarter [1] Future Outlook - Management maintains guidance for over 30% growth in product sales for the full year [1] - The company aims to achieve breakeven by next year and expects to become profitable by 2027, excluding business development (BD) impacts [1] Target Price Adjustment - CMB International has adjusted its revenue forecast for Rongchang Biologics for 2027 downward due to the licensing of Taitasip but has raised its net profit forecast and increased the target price to 103 HKD while maintaining a "Buy" rating [1]