Investment Rating - The report maintains a "Hold" rating for Rongchang Biologics (9995.HK) with a target price of HKD 33 [2][4]. Core Views - The net loss for Q1 2024 was in line with expectations, with revenue reaching RMB 330 million, representing a year-on-year increase of 96.41% and a quarter-on-quarter increase of 6.6%. The net loss was RMB 349 million, up 7.8% year-on-year but down 27.4% quarter-on-quarter, primarily due to better-than-expected gross margin and lower operating expenses [2]. - The company maintains its revenue guidance for 2024, projecting a 50% year-on-year increase, driven by sales from two listed products, RC18 and RC48, both expected to grow by over 50% [2]. - The A-share private placement of RMB 2.55 billion is still pending regulatory approval, with no clear timeline for issuance. The funds will support innovative drug development [2]. - Key catalysts for 2024 include potential overseas licensing for RC18, approval for RA indications in China, and data readouts for RC48 and RC88 at the 2024 ASCO conference [2]. Financial Summary - Q1 2024 revenue was RMB 330 million, with a gross margin of 77.5%, slightly down from 4Q23 [2]. - The company expects total revenue of RMB 1.6 billion in 2024, with a projected net loss of RMB 1.39 billion [6][8]. - The financial outlook includes a significant increase in revenue from RMB 1.08 billion in 2023 to RMB 1.61 billion in 2024, with continued losses expected to decrease over the following years [6][8].
1Q24净亏损符合预期；公司维持2024年收入指引