ZAI LAB(ZLAB) Huajing Securities·2025-01-20 14:23Investment Rating - The report maintains a "Buy" rating for Zai Lab with a target price of US$62.32, indicating a potential upside of 153% from the current price of US$24.60 [1][4][5]. Core Insights - Zai Lab is experiencing accelerated global pipeline development, with short to medium-term performance expected to continue growing due to strong revenue and controlled expenditures. The company reported total revenue of US$290 million in Q3 2024, with ZEJULA's operating profit margin increasing from below 10% in Q3 2022 to 37% in Q3 2024 [1][2]. - The introduction of Povetacicept, a dual antagonist for lgA nephropathy, expands Zai Lab's commercialization pipeline, with significant market potential in China where there are approximately 3 to 5 million patients [2][3]. - The company anticipates a wave of growth with the expected approval of key drugs such as Bemarituzumab and KarTX between 2025 and 2026, and plans to launch over 15 products by 2028, projecting revenues of US$2 billion by that year [3][5]. Financial Summary - Revenue is projected to grow from US$267 million in 2023 to US$562 million in 2025, with a gross profit increasing from US$171 million to US$364 million in the same period [4][9]. - The net loss is expected to narrow from US$334 million in 2023 to US$205 million in 2025, with the company aiming for breakeven by Q4 2025 [4][5][9]. - The earnings per share (EPS) is projected to improve from (US$3.42) in 2023 to US$0.22 in 2026, indicating a significant turnaround in profitability [4][9].