GENSCRIPT BIO(HK:01548)2024-07-29 03:31Investment Rating - The report assigns a "Buy" rating to King’s Ray Biotech (1548 HK) with a target price of 27.75 HKD, indicating a potential upside of 122.4% [5]. Core Insights - King’s Ray and its subsidiary Legend Biotech reported a narrower loss for 1H24, which was below expectations. King’s Ray's revenue is projected to grow between 29.1% to 50.6%, reaching approximately 505 to 590 million USD, while the net loss (non-attributable) is expected to narrow to 213 to 226 million USD compared to 246 million USD in 1H23. The adjusted net loss, excluding non-recurring items, is anticipated to significantly decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23, also better than expectations [1][2]. Summary by Sections Financial Performance - King’s Ray's revenue growth is projected at 29.1% to 50.6%, reaching 505 to 590 million USD. The net loss is expected to narrow to 213 to 226 million USD, down from 246 million USD in 1H23. The adjusted net loss is forecasted to decrease to 64.3 to 83.5 million USD from 162 million USD in 1H23 [1]. - Legend Biotech is expected to report a net loss of 75 to 87 million USD, with an adjusted net loss of 95 to 110 million USD, significantly reduced from a net loss of 311 million USD in 1H23 [1]. Business Segments - The non-cell therapy business of King’s Ray is expected to generate revenue of approximately 260 to 350 million USD in 1H24, aligning with market expectations. The life sciences services segment is anticipated to achieve a growth rate of 15-20% for the full year [2]. - R&D expenses are projected to increase by 8-25% to 225 to 260 million USD, primarily for ongoing development activities related to ciltacel and solid tumor projects [1]. Future Outlook - The adjusted net loss for King’s Ray in 2H24 is expected to further narrow year-on-year and quarter-on-quarter, with a target of achieving overall breakeven by 2025 [2].