REMEGEN(SH:688331)2024-08-20 08:00Investment Rating - The report maintains a "Hold" rating for the company with a target price of HKD 26 for Hong Kong shares and RMB 35 for A-shares [1][2]. Core Insights - The company's revenue for Q2 2024 slightly exceeded expectations, primarily due to better-than-expected sales of Taihe Xip, but the net loss was significantly higher than anticipated due to increased R&D expenses and non-operating costs [1][2]. - The sales of Taihe Xip reached approximately RMB 380 million in the first half of the year, showing a growth of around 100% year-on-year, with significant contributions from rheumatology and nephrology departments [1][2]. - The company is expected to face challenges in maintaining R&D expenses at the same level as the first half of 2024, with predictions of an increase in the second half due to ongoing clinical trials and new patient enrollments [2][3]. Financial Performance Summary - For Q2 2024, the company reported revenues of RMB 409 million, a year-on-year increase of 63.1% and a quarter-on-quarter increase of 23.8% [1]. - The net loss for Q2 2024 was RMB 432 million, reflecting a year-on-year increase of 13.7% and a quarter-on-quarter increase of 23.7% [1]. - The gross margin for Q2 2024 was 76.8%, showing a slight decrease from the previous quarter but a significant increase compared to the same period last year [1][2]. Revenue and Profit Forecast - The projected revenue for 2024 is RMB 1.719 billion, representing a year-on-year growth of 59.8% [3][4]. - The forecasted net loss for 2024 is RMB 1.704 billion, with subsequent years showing a gradual decrease in losses [3][4]. - The company anticipates a significant increase in sales for Taihe Xip in the second half of 2024, potentially exceeding RMB 500 million [1][2]. Market Position and Future Catalysts - The company has expanded its commercial team to over 800 members, enhancing its market coverage and sales capabilities [1][2]. - Key upcoming catalysts include potential overseas licensing for RC18, regulatory submissions for various indications, and data readouts for ongoing clinical trials [2][3].