INNOCARE(688428) KAIYUAN SECURITIES·2024-10-28 09:31Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company is positioned as a global leader in the hematological oncology field, with significant growth potential in autoimmune diseases, indicating a second growth curve [1][16]. - The company has established a strong pipeline with 13 clinical programs, focusing on hematological malignancies and autoimmune diseases, with its core product, Oubritinib, already approved in China and Singapore [13][19]. - Revenue projections for 2024-2026 are estimated at 964 million, 1.275 billion, and 1.679 billion yuan, reflecting year-on-year growth rates of 30.6%, 32.2%, and 31.7% respectively [1][5]. Summary by Sections Company Overview - The company was founded in 2015 and focuses on innovative drug development for malignant tumors and autoimmune diseases, with a comprehensive platform from innovation to commercialization [13][16]. - It has a total market capitalization of 237.59 billion yuan and a circulating market capitalization of 35.89 billion yuan [2]. Hematological Oncology - Oubritinib is the core product, with three approved indications and a strong market presence, particularly in the treatment of various lymphomas [3][19]. - The company has introduced Tafasitamab for the second-line treatment of DLBCL, which is expected to be approved in mainland China in the first half of 2025 [3][19]. Autoimmune Diseases - The company has multiple global leading targets in autoimmune diseases, with Oubritinib showing promising results in conditions like ITP, SLE, and MS [4][19]. - The pipeline includes two TYK2 inhibitors, ICP-332 and ICP-488, targeting various autoimmune conditions, with early clinical efficacy reported [4][19]. Financial Projections - The company anticipates a gradual narrowing of losses, with projected net profits of -887 million, -631 million, -622 million, -615 million, and -598 million yuan from 2024 to 2026 [5]. - The gross margin is expected to improve from 82.9% in 2024 to 84.9% in 2026, indicating operational efficiency [5]. Market Position - The company has a diversified product pipeline covering hematological malignancies, autoimmune diseases, and solid tumors, showcasing its strategic positioning in precision medicine [16][18]. - The stock price is currently at 13.48 yuan, with a projected price-to-sales ratio decreasing from 24.6 in 2024 to 14.2 in 2026, suggesting potential undervaluation [2][5].