Ge Long Hui·2025-11-04 03:41Core Viewpoint - Morgan Stanley's research report indicates that Rongchang Bio's third-quarter performance was mixed, with product revenue falling short of expectations, but profit margins and operating expenses were better controlled than anticipated, reflecting the company's ongoing cost optimization efforts [1] Financial Performance - Product revenue for the third quarter was lower than Morgan Stanley's expectations [1] - Research and development expenses decreased by 30% year-on-year and 24% quarter-on-quarter following the RC18 licensing agreement with Vor Bio signed in June [1] - Administrative expenses also declined by 23%, continuing the positive trend from previous quarters [1] Revenue Forecast Adjustments - The bank has lowered its product revenue forecasts for 2025 and 2026 to reflect the latest performance [1] - Conversely, the forecast for licensing revenue has been increased [1] Profitability Outlook - With improved profit margins and reduced operating expenses, the bank expects the net loss for 2025 and 2026 to narrow [1] Target Price Adjustments - The target price for H-shares has been raised from HKD 73 to HKD 77, with a rating upgrade to "Neutral" [1] - The target price for A-shares has been increased from CNY 86 to CNY 92, maintaining a "Neutral" rating [1]