Zelgen(688266) Huaan Securities·2024-10-28 06:00Investment Rating - Investment Rating: Buy (Maintained) [1] Core Views - The company reported a revenue of 384 million yuan for Q3 2024, representing a year-on-year increase of 36.16% [1] - The net profit attributable to shareholders was -98 million yuan, showing a reduction in losses by 51.55% [1] - The company has achieved continuous quarter-on-quarter revenue growth over the past four quarters [1] - The gross margin for the first three quarters of 2024 was 92.96%, an increase of 0.57 percentage points year-on-year [1] - The company’s innovative drug ZG006 has shown promising clinical trial results, positioning it as a leading product in the TCE antibody sector [1] Financial Performance - Revenue projections for 2024-2026 are 588 million, 1.286 billion, and 2.059 billion yuan, with year-on-year growth rates of 52.3%, 118.5%, and 60.2% respectively [2] - The net profit attributable to shareholders is projected to be -127 million, 104 million, and 245 million yuan for the same period, with year-on-year growth rates of 54.6%, 182.0%, and 136.0% respectively [2] - The overall gross margin is expected to remain high, with estimates of 92.6% in 2024 and 91.2% in 2026 [3][4] Clinical Development - ZG006 has completed the dose escalation phase of its clinical trial for SCLC and neuroendocrine cancers, with 24 evaluable samples and a promising overall response rate (ORR) of 66.7% [1] - The drug has received orphan drug designation from the FDA, highlighting its global competitiveness [1] - The combination of ZG006 with frontline therapies is anticipated to enhance patient outcomes, supported by data from other CD3/DLL3 targeted therapies [1]