Zhi Tong Cai Jing·2025-11-04 01:33Core Viewpoint - The report from CMB International indicates an increase in the target price for Rongchang Biologics (09995) from HKD 109 to HKD 112, maintaining a "Buy" rating, highlighting significant growth potential in upcoming clinical developments and product sales [1] Financial Performance - Rongchang Biologics reported a 33% year-on-year increase in revenue for Q3, reaching RMB 620 million, with sales from Taitasip contributing RMB 380 million, reflecting a 41% year-on-year and 13% quarter-on-quarter growth [1] - Sales from Vidisizumab amounted to RMB 240 million, showing a 21% year-on-year and 3.5% quarter-on-quarter increase [1] - The gross margin improved by 2.5 percentage points, while the SG&A expense ratio decreased by 9.6 percentage points, and R&D expenses saw a significant reduction of 30% [1] Loss and Cash Position - The net loss for Q3 was RMB 100 million, continuing a trend of sequential reduction [1] - The company ended the quarter with cash reserves of RMB 1.45 billion and approximately RMB 3.5 billion in available credit lines [1] Future Outlook - Management expressed confidence in achieving over 30% growth in annual product sales revenue, with expected recognition of upfront revenue from BD licensing deals for Taitasip and RC28 in Q4 [1]