Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 56.00, representing a potential upside of 86.7% from the current price of HKD 30.00 [9][10]. Core Insights - The company reported strong product sales in Q1 2024, with revenue reaching RMB 330 million, a year-on-year increase of 96.4% and a quarter-on-quarter growth of 5.4%. The net loss narrowed to RMB 350 million, down from RMB 480 million in Q4 2023, aided by a reduction in sales and R&D expenses [1][2]. - The management has guided for over 50% revenue growth for the full year 2024, with expectations of further declines in R&D and sales expense ratios. The company anticipates a funding requirement of approximately RMB 1.5 to 2 billion for the year [1][2]. - The upcoming ASCO conference will showcase 16 clinical study results, including the first human data for the mesothelin ADC RC88, which is being compared with other treatments [2]. - The company is progressing with its international expansion, with significant milestones expected in 2024, including the initiation of Phase III trials for its products [2][3]. Financial Summary - Revenue projections for the company are as follows: RMB 1.663 billion in 2024, RMB 2.503 billion in 2025, and RMB 3.728 billion in 2026, with net losses expected to gradually narrow [3][10]. - The company reported a cash balance of RMB 620 million as of Q1 2024, with an additional bank credit line of RMB 4 billion, ensuring operational sustainability until breakeven [1][2]. - The financial outlook includes a projected EBIT of RMB 821 million by 2027, indicating a path towards profitability [6][10].
1Q24产品销售强劲并减亏，重要催化剂即将集中落地，维持买入