BIOKIN PHARMACEUTICAL(SH:688506) Sou Hu Cai Jing·2025-12-10 08:43Core Viewpoint - Baili Tianheng's market value has surged from billions to trillions, making its founder Zhu Yi the richest person in Sichuan, but the company faces significant performance volatility and relies heavily on licensing income from BMS [1][6]. Group 1: Company Performance - Baili Tianheng's revenue is almost entirely dependent on licensing income from BMS, leading to a sharp decline in revenue due to a lack of new large licensing confirmations [1][6]. - The company reported a net profit of 3.708 billion yuan in 2024, ranking sixth in the pharmaceutical industry, but this was primarily due to a significant licensing deal with BMS for the drug iza-bren [6][7]. - Despite a recovery in the third quarter with a $250 million milestone payment, the company still recorded a loss of 494 million yuan in the first three quarters of the year [1][6]. Group 2: IPO and Market Strategy - Baili Tianheng has delayed its Hong Kong IPO, a rare move in the market, due to concerns about potential share price drops amid a sluggish sentiment in the biotech sector [2][3]. - The company has attempted to list on the Hong Kong Stock Exchange three times, with the latest attempt being postponed just days before the deadline [2][3]. - The expected pricing range for the H-shares is between 347.5 and 389 HKD, which is almost at par with A-shares, making it less attractive for international investors looking for arbitrage opportunities [2][3]. Group 3: Research and Development - The company has significantly increased its R&D investment, with R&D expenses reaching 746 million yuan in 2023, accounting for 132.81% of revenue [7]. - The anticipated drug iza-bren is crucial for the company's future, with expectations for it to be the first to market in China next year, potentially changing the company's reliance on licensing income [7]. - Baili Tianheng's traditional pharmaceutical business is facing challenges due to price reductions from centralized procurement, leading to declines in revenue and profit margins [7].