Core Insights - The company showcased its fully integrated and localized AI + mRNA platform during a recent R&D day, highlighting advancements in multiple mRNA cancer therapeutics [1] - The company has updated promising data on its reversible BTK inhibitor EVER001 for treating membranous nephropathy, indicating significant immunological and clinical responses [1][2] Group 1: AI + mRNA Platform Developments - The personalized cancer therapeutic vaccine EVM16 has shown efficacy in mouse melanoma models and demonstrated synergy with PD-1 antibodies, with initial IIT research results indicating a strong T cell response even at low starting doses [1] - The universal on-demand cancer therapeutic vaccine EVM14 targets five tumor-associated antigens and has shown potential in inducing immune memory and reducing tumor recurrence, with ongoing dual submissions in China and the U.S. [1] - The autologous CAR-T project has been validated in animal models, showcasing advantages such as on-demand availability, no lymphodepletion requirement, and controllable dosing, indicating potential for treating tumors and autoimmune diseases [1] Group 2: EVER001 Updates - The company reported Phase Ib/IIa data for the covalent reversible BTK inhibitor EVER001 in treating membranous nephropathy, with significant reductions in anti-PLA2R antibodies and urinary protein levels observed [1] - After 36 weeks of treatment, the high-dose group maintained a 100% rate of complete immunological and clinical response post-treatment [1] - The potential market for membranous nephropathy is substantial, with 2 million patients in China and 180,000 in Europe and the U.S., and no approved drugs globally [1] - The company plans to release 52-week follow-up data in September and is exploring potential registration pathways with regulatory agencies in China and the U.S. [1] - Discussions are ongoing with potential partners regarding business development opportunities and the possibility of using EVER001 for other B cell-mediated autoimmune diseases [1] Group 3: Financial Projections - The company has adjusted its 2025-2027 profit forecasts to reflect a more cautious outlook on product revenue growth but has included EVER001 in its long-term financial projections, expecting peak sales to exceed 1.5 billion RMB [2] - The target price has been raised to 72.5 HKD, corresponding to a target valuation of 23.7 billion HKD and a price-to-sales ratio of 1.8 times at peak revenue [2]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 72.50, indicating a potential upside of 16.6% from the current closing price of HKD 62.20 [1][27]. Core Insights - The mRNA platform development is progressing steadily, with excellent data on the reversible BTK inhibitor for membranous nephropathy. The target price has been raised to reflect these developments [2][6]. - The company has showcased its fully integrated and localized AI + mRNA platform, highlighting several mRNA tumor drug developments, including personalized and universal therapeutic vaccines [6]. - The reversible BTK inhibitor EVER001 has shown promising results in clinical trials for treating membranous nephropathy, with significant reductions in anti-PLA2R antibody levels and urinary protein levels [6]. Financial Overview - Revenue projections for the company are as follows: - 2023: RMB 126 million - 2024: RMB 707 million - 2025E: RMB 1,660 million - 2026E: RMB 2,552 million - 2027E: RMB 3,752 million - Year-on-year growth rates are projected at 884.5% for 2023, 461.2% for 2024, and 134.9% for 2025 [5][28]. - The net profit (loss) is expected to improve from a loss of RMB 844 million in 2023 to a profit of RMB 743 million by 2027 [5][28]. - The company’s market capitalization is approximately HKD 20.2 billion, with an average daily trading volume of 13.36 million shares [3]. Valuation Metrics - The report indicates a peak sales estimate for EVER001 exceeding RMB 1.5 billion, with a target valuation of HKD 72.50 corresponding to a market cap of HKD 237 billion and a price-to-sales ratio of 1.8 times at peak revenue [6][24]. - The company’s financial forecasts have been adjusted, reflecting a more cautious outlook on product revenue ramp-up, with slight downward revisions in revenue estimates for 2025-2027 [6][23].