Zhi Tong Cai Jing·2026-02-03 08:02Core Viewpoint - The report from CMB International maintains a target price of HKD 136 for Rongchang Biologics (09995) and a buy rating, anticipating that the company will achieve or approach breakeven in its main business by Q4 2025, earlier than previously expected [1] Group 1: Financial Performance - The company is projected to achieve approximately RMB 3.25 billion in revenue for the year 2025, representing a year-on-year growth of about 89% [2] - Expected net profit for 2025 is around RMB 716 million, with a non-GAAP net profit of approximately RMB 78.5 million, both indicating a turnaround to profitability compared to the previous year [2] Group 2: Growth Drivers - The significant growth in performance is driven by three main factors: 1) Continued commercialization and sales growth of core products, particularly Taitasip and Vidisizumab in the Chinese market [3] 2) Recognition of BD income significantly enhancing profit margins, with agreements for overseas rights for Taitasip and the ophthalmic drug RC-28E contributing to upfront payments and potential equity value gains [3] 3) Ongoing optimization of operational efficiency, leading to improved gross margins and a notable decrease in sales expense ratios [3] Group 3: Future Outlook - The company is expected to see positive developments in 2026, including: 1) Progress in overseas registration studies for key products, with Taitasip's MGIII phase enrollment expected to complete in the first half of 2026 and SSIII phase initiation also in 2026, alongside the first overseas BLA submission for Vidisizumab [4] 2) Increased sales of Taitasip in mainland China following its inclusion in medical insurance, as well as approvals for additional major indications [4] 3) Advancement of early-stage products (including RC148, RC118, and new ADCRC278) in more indications, with data readouts likely to continue driving stock price [4]