Core Viewpoint - The company reported a narrower net loss in 1H25 than expected, maintaining a "Buy" rating and raising the target price to HKD 77 [1][5] Financial Performance - In 1H25, the company achieved revenue of RMB 499 million, representing an increase of 812.1% year-over-year, with product revenue of RMB 169 million and collaboration revenue of RMB 329 million, which increased by 502.6% year-over-year [2] - The net loss attributable to the parent company narrowed to RMB 78.84 million from RMB 337 million in 1H24, better than expectations due to higher collaboration revenue and improved gross margin on product sales [2] - Cash on hand reached RMB 2.8 billion as of June 30, 2025, up from RMB 2.16 billion at the end of 2024, aided by a successful placement in the Hong Kong market [2] Product Development and Sales - CM310 achieved sales of RMB 169 million in the first half of the year, with the company maintaining its first-year sales target of RMB 500 million [3] - The commercial team for CM310 has expanded to over 360 members, covering more than 1,400 hospitals across 30 provinces [3] - The company is optimistic about including multiple indications of CM310 in national health insurance, particularly for atopic dermatitis and nasal polyps [3] Pipeline and R&D - CM512, a next-generation dual antibody drug, is being prioritized for development, with a long half-life supporting less frequent dosing [4] - The company is advancing clinical trials for CM512 in multiple indications, including asthma and chronic rhinosinusitis with nasal polyps, with rapid progress in domestic clinical trials [4] Valuation and Outlook - The company revised its estimates for net losses in 2025, 2026, and 2027 to RMB 570 million, RMB 560 million, and RMB 420 million, respectively, due to improved gross margin forecasts [5] - A DCF valuation model yielded a new target price of HKD 77, reflecting the company's robust early pipeline [5]
康诺亚(2162.HK)：关注下半年商业化进展及医保谈判结果