Zhao Yin Guo Ji·2025-03-31 13:28Company Analysis - Xinda Biopharmaceuticals (1801 HK) is expected to achieve sustainable profitability ahead of schedule in 2024, with a projected non-IFRS net profit of 332 million RMB and EBITDA of 412 million RMB, driven by strong product revenue growth and one-time licensing fee income [2] - The total revenue for Xinda Biopharmaceuticals is anticipated to reach 9.42 billion RMB, representing a year-on-year increase of 52%, with product sales revenue of 8.23 billion RMB, up 44% year-on-year [2] - The sales of the monoclonal antibody, Xindili, grew by 34% to 526 million USD, and the company expects to continue maintaining non-IFRS EBITDA profitability in 2025, even excluding an 8 million USD upfront payment from a licensing deal with Roche [2][5] Financial Performance - Xinda Biopharmaceuticals' non-IFRS gross margin is projected to improve from 82.8% in 2023 to 84.9% in 2024, while the SG&A ratio is expected to decrease from 58.0% to 50.9%, indicating enhanced operational efficiency [5] - By the end of 2024, the company is expected to hold a strong cash balance of 10.2 billion RMB, supporting its long-term development [5] Product Pipeline and Innovation - Xinda Biopharmaceuticals is focusing on developing next-generation immunotherapies and ADCs, with over 10 ADC clinical projects underway, including IBI363, which is anticipated to be a significant product for treating immune-resistant and cold tumors [5][6] - The company plans to update data on IBI363 at the ASCO conference in June, including results from a clinical trial in immune-resistant squamous non-small cell lung cancer [5] Market Overview - The global market has shown mixed performance, with the Hang Seng Index down 0.65% and the S&P 500 down 1.97% on the same day, reflecting a cautious sentiment among investors [2][4] - The report highlights that the U.S. core PCE inflation exceeded expectations, contributing to increased market risk aversion, while European markets also experienced declines [4] Investment Ratings - The report maintains a "Buy" rating for Xinda Biopharmaceuticals, with a target price raised to 61.71 HKD, reflecting confidence in the company's sustainable profitability and strong innovation pipeline [7]