Core Insights - The company focuses on the field of small molecule innovative drugs, particularly in NSCLC, and possesses both second and third generation ALK-TKIs [1] - The company has a diverse pipeline addressing various cancer indications and urgent clinical needs, including multiple early-stage projects that have achieved significant milestones [1] - The commercial value of the second generation ALK-TKI is about to be realized, and the clinical progress of the third generation ALK-TKI is proceeding smoothly [1] Product Development - SY-707, a second generation ALK-TKI, is under review by NMPA with its NDA accepted in October 2024, and the registration inspection has been completed [2] - SY-3505, the fastest progressing third generation ALK-TKI in clinical trials, shows strong inhibitory effects on key resistant mutations of first and second generation ALK-TKIs [2] - SY-5007, a selective RET-TKI, is currently in phase III clinical trials and has demonstrated good efficacy and safety in patients with RET fusion-positive NSCLC [4] Market Landscape - The ALK-TKI market in China is dominated by second generation products, which are expected to account for 67.33% of the market by 2024, while first generation products are gradually being replaced [3] - Lorlatinib, a third generation ALK-TKI, has rapidly increased its market share since its launch in 2022, projected to reach nearly 15% by 2024 [3] - Alectinib continues to lead the market with a 54.82% share in the hospital sector, while the first generation crizotinib holds a 17.81% market share [3] Financial Projections - The company’s total equity value is estimated at 6.614 billion RMB, with projected revenues of 0.59 billion, 1.43 billion, and 2.87 billion RMB for 2025-2027 [5] - The company is expected to incur net losses of -1.84 billion, -1.71 billion, and -1.74 billion RMB for the same period [5] - Given the imminent launch of SY-707 and the promising clinical progress of SY-3505 and SY-5007, the current market valuation is below the estimated equity value, leading to an "accumulate" rating [5]

Investment Rating - The report assigns an "Accumulate" rating to the company, marking its first coverage [3][8]. Core Insights - The company focuses on the NSCLC small molecule innovative drug sector, possessing both second and third generation ALK-TKIs, with significant advancements in its clinical pipeline [3][17]. - The commercial value of the second generation ALK-TKI is about to be realized, while the third generation ALK-TKI is progressing well in clinical trials [4][60]. - The company has multiple early-stage research projects that have achieved significant milestones, ensuring sustainable development [3][18]. Summary by Sections Section 1: Focus on NSCLC Small Molecule Innovative Drugs - The company specializes in the independent research and development of small molecule innovative drugs, with a pipeline that includes various tumor indications and urgent clinical needs [3][17]. - It is the first domestic company to have both second and third generation ALK-TKIs [3][17]. - As of the 2024 report, the company has 22 proprietary research pipelines, all classified as new drugs [17][18]. Section 2: Commercial Value of ALK-TKIs - The second generation ALK-TKI SY-707 is nearing commercialization, with its NDA accepted by NMPA [4][55]. - The third generation ALK-TKI SY-3505 is the fastest progressing domestic option, with ongoing key clinical trials [4][58]. - The ALK-TKI market in China is dominated by second generation products, which are expected to account for 67.33% of the market by 2024 [60]. Section 3: SY-5007 and RET-TKI Development - SY-5007 is a high-selectivity RET-TKI that is currently in phase III clinical trials, showing promising efficacy and safety [6][22]. - It is the only domestic selective RET-TKI that has entered phase III trials globally, providing a significant competitive edge [6][22]. Section 4: Financial Projections - The company is projected to generate revenues of 0.59 billion, 1.43 billion, and 2.87 billion RMB from 2025 to 2027, with net losses expected to decrease slightly over the same period [7][10]. - The total equity value of the company is estimated at 6.614 billion RMB based on DCF modeling [7][8].