GENSCRIPT BIO(HK:01548)2024-04-25 03:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 27.75, indicating a potential upside of 156.0% from the current price of HKD 10.84 [3][12]. Core Insights - The approval of Carvykti for a new indication in multiple myeloma (MM) is expected to drive significant sales growth, with sales in Q1 2024 reaching USD 157 million, a year-on-year increase of 118.1% [1]. - The company aims to ramp up production capacity to 10,000 doses by the end of 2025, with new production facilities expected to come online in late 2024 and 2H 2025 [1]. - The report highlights the potential for the CDMO segment to outperform expectations due to a recovering financing environment, with a projected revenue growth of 15-20% for the life sciences services segment [1][2]. Financial Summary - Revenue projections for the company are revised slightly downwards for 2024 and 2025 to USD 1.265 billion and USD 1.684 billion, respectively, but long-term sales forecasts for Carvykti have been increased to a peak sales estimate of USD 6.5 billion [2][3]. - The company is expected to achieve a net profit of USD 13 million in 2025, with a significant turnaround from a projected loss of USD 126 million in 2024 [3][13]. - The report provides a detailed financial forecast, indicating a revenue growth of 50.6% in 2024 and 33.1% in 2025 [3][13]. Business Segments and Valuation - The report outlines the valuation of different business segments, with the cell therapy segment being the most valuable at USD 10.783 billion, accounting for 69% of the total company valuation [9]. - The life sciences services segment is valued at USD 1.312 billion, while the CDMO segment is valued at USD 1.056 billion [9]. - The overall target valuation for the company is set at USD 7.554 billion, translating to a target price of HKD 27.75 per share [9].