Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 6-month target price of HKD 33.87 [6]. Core Insights - The company maintains its full-year revenue guidance for 2025, projecting revenue between USD 560 million and USD 590 million, reflecting confidence in the accelerated sales of its already launched products in the second half of the year [2][3]. - Several key milestones are anticipated in the second half of 2025, including submissions for new drug applications and expected approvals for existing products, which could significantly impact revenue growth [3][4]. Financial Projections - Revenue projections for 2025, 2026, and 2027 are estimated at CNY 4.01 billion, CNY 5.48 billion, and CNY 7.49 billion, respectively, with net profits expected to improve from a loss of CNY 1.11 billion in 2025 to a profit of CNY 590 million by 2027 [4][9]. - The company is expected to achieve a gross margin of 65% in 2025, increasing to 70% by 2027, indicating improving profitability [11][15]. Market Performance - The company's stock price as of August 22, 2025, was HKD 26.80, with a 12-month price range of HKD 13.78 to HKD 34.55 [6]. - The report notes a relative return of -15.4% over the past month and an absolute return of 94.5% over the past year, indicating significant volatility but also potential for recovery [7]. Clinical Development Pipeline - The company has a robust clinical development pipeline, with several key products expected to enter clinical trials or receive regulatory approvals in the near future, which could enhance its market position [3][4].

Investment Rating - The report maintains a positive outlook on Zai Lab with a reaffirmed full-year revenue guidance of USD 560-590 million for 2025 [1][5]. Core Insights - Zai Lab reported a net product revenue of USD 109 million in 2Q25, representing a 9% year-over-year increase, with a gross margin of 60.7% [1][5]. - The core product, efgartigimod, achieved sales of USD 26.5 million, up 14% year-over-year and 46% quarter-over-quarter, driven by extended treatment duration and improved market penetration [2][7]. - The company narrowed its net loss to USD 40.7 million from USD 80.3 million in the same quarter last year, with adjusted operating loss improving by 37% year-over-year to USD 34.2 million [1][5]. Financial Performance - The R&D expense ratio decreased to 46.0% of revenue, down 15.3 percentage points year-over-year, while SG&A expenses decreased to 64.6%, down 14.7 percentage points year-over-year [1][5]. - As of the end of 2Q25, Zai Lab had a strong cash position of USD 860 million [1][5]. Key Milestones - Anticipated milestones for 2H25 include the submission of a Biologics License Application (BLA) for bemarituzumab for first-line gastric cancer treatment and a marketing authorization application for tumor treating fields in first-line pancreatic cancer treatment [2][7]. - Initiation of a global registrational study for ZL-1310 monotherapy in second-line extensive-stage small cell lung cancer (ES-SCLC) is also planned [2][7].