GENSCRIPT BIO(HK:01548) Guolian Securities·2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" [7]. Core Insights - The company reported a revenue of $840 million for 2023, representing a year-on-year growth of 34.2%. The gross profit was $410 million, also up by 34.7%. Adjusted net profit was a loss of $298 million, narrowing by 17.0% year-on-year, which was in line with expectations [2]. - The non-cell therapy business maintained steady growth, with revenue of $555 million, up 8.9% year-on-year. The life sciences segment generated $405 million in revenue, a 15.6% increase, benefiting from improved operational efficiency in Europe and the U.S. However, the biopharmaceutical CDMO business saw a revenue decline of 12.4% to $110 million due to weakened market demand [3]. - The "Best-in-Class" CAR-T product Carvykti achieved sales of $500 million in 2023, making it the fastest-selling CAR-T product globally within two years of its launch. The company received $250 million in sales royalties and $35 million in milestone payments, totaling $285 million in revenue, a 144.2% increase year-on-year [4]. Financial Performance and Valuation - Revenue projections for 2024-2026 are $1.33 billion, $2.03 billion, and $2.79 billion, with growth rates of 58.52%, 52.54%, and 37.56% respectively. The adjusted net profit is expected to be -$148 million, $33 million, and $226 million, with growth rates of -54.87%, 121.99%, and 596.23% respectively [5]. - The company is valued using a segmented valuation approach, with a target market capitalization of HKD 58.3 billion for 2024, corresponding to a target price of HKD 27.43 [5].