Investment Rating - The report maintains a "Buy" rating for the company [6] Core Viewpoints - The company achieved a significant reduction in losses, with a total revenue of CNY 129.47 million in 2024, representing a year-on-year increase of 13.32%. The net loss attributable to shareholders was CNY 201.38 million, a reduction of CNY 127.58 million compared to the previous year [1][3] - The company is focusing on expanding the indications for its product Aikening, with new clinical trials approved for maintenance therapy and immune reconstitution failure, addressing a significant unmet clinical need in the HIV treatment space [2] - The company is actively exploring the small nucleic acid field for new drug development, with a candidate drug FB7013 for IgA nephropathy entering the IND-enabling stage and nine patent applications submitted to establish a technological moat [2] - The company is making breakthroughs in high-end generic drugs, with FB4001 expected to be approved in the US by 2025 and FB3002's application accepted for review, enhancing the company's revenue matrix [3] - Revenue forecasts for 2025-2027 are projected at CNY 161 million, CNY 190 million, and CNY 223 million, with year-on-year growth rates of 24.0%, 18.4%, and 17.2% respectively [3] Financial Summary - In 2024, the company reported total revenue of CNY 129.47 million, with a year-on-year growth rate of 13.32%. The net loss attributable to shareholders was CNY 201.38 million, a decrease of 38.8% from the previous year [5] - The projected revenues for 2025, 2026, and 2027 are CNY 161 million, CNY 190 million, and CNY 223 million, with corresponding growth rates of 24.0%, 18.4%, and 17.2% [5][11] - The latest diluted EPS for 2024 is expected to be CNY -0.54, with a projected improvement to CNY -0.49 in 2025 [5][11]

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company achieved a significant reduction in losses, with a total revenue of 129.47 million yuan in 2024, representing a year-on-year increase of 13.32% [1] - The net profit attributable to shareholders was a loss of 201.38 million yuan, a reduction in loss by 127.58 million yuan compared to the previous year, attributed to cost reduction and efficiency improvements [1] - The company is focusing on expanding its revenue matrix through its main product, Aikening, and diversified business operations [1][2] Revenue Growth and Business Development - The company is actively promoting Aikening for new indications, with clinical trials for maintenance therapy and immune reconstitution failure approved by the National Medical Products Administration [2] - There is a significant unmet clinical need in the immune reconstitution failure area, with over 200,000 patients in China, indicating potential for future commercialization [2] - The company is exploring new technologies in the small nucleic acid field, with a candidate drug for IgA nephropathy, FB7013, entering the IND-enabling stage [2] High-End Generic Drugs and Future Projections - The company is making breakthroughs in high-end generic drugs, with FB4001 expected to be approved in the US by 2025 and FB3002's application accepted for review [3] - Revenue projections for 2025-2027 are 161 million yuan, 190 million yuan, and 223 million yuan, with year-on-year growth rates of 24.0%, 18.4%, and 17.2% respectively [3][5] - The net profit attributable to shareholders is projected to be -182 million yuan, -120 million yuan, and -176 million yuan for the same period [3][5] Financial Metrics - The company reported a revenue of 114 million yuan in 2023, with a growth rate of 34.8% [5] - The latest diluted EPS is projected to improve from -0.88 yuan in 2023 to -0.49 yuan in 2025 [5] - The company’s total market capitalization is approximately 3,206.39 million yuan, with a closing price of 8.56 yuan as of May 7 [6]

Core Viewpoint - Frontier Biotech reported a revenue of 129 million yuan for 2024, marking a year-on-year growth of 13.32%, and a revenue of 28.33 million yuan for Q1 2025, with a growth of 14.93% compared to the previous year, indicating a sustained growth trend [1] Group 1: Business Performance - The company achieved a net cash outflow from operating activities of 94.66 million yuan, a reduction compared to the previous year, due to efforts in cost reduction and efficiency enhancement [1] - The core product, Aikening®, has generated over 100 million yuan in sales for two consecutive years since 2023, demonstrating successful commercialization [2] Group 2: R&D and Market Strategy - Frontier Biotech is enhancing its new drug R&D, production, and commercialization capabilities, solidifying its competitive edge in the new drug development sector [3] - The company is focusing on targeted patient education and product promotion in outpatient settings, particularly among high-viral-load populations and those with inadequate antiviral treatment [3] Group 3: Innovation and Technology - The company is actively expanding into the chronic disease market with small nucleic acid drugs and high-end generic drugs, leveraging its technical strengths and R&D experience from Aikening® [4] - Frontier Biotech has initiated clinical trial applications for its candidate small nucleic acid drug FB7013, aimed at treating IgA nephropathy, and has filed nine patent applications related to its small nucleic acid products [4] Group 4: Diversification Strategy - The company is pursuing a diversified business strategy, including acquiring commercialization rights for Veklury® in China and expanding into HIV viral load and drug resistance testing [5] - Veklury® has been successfully listed for sale in 29 provinces across China, contributing to the company's performance [5]