Investment Rating - The investment rating for the company is "Buy" with a target price of 95.42 HKD, compared to the last closing price of 74.25 HKD [1][10]. Core Views - The report highlights that the clinical data for IBI363, a dual-specific antibody fusion protein, has exceeded expectations in treating advanced non-small cell lung cancer (NSCLC), colorectal cancer (CRC), and melanoma [3][4][5][6]. - The company is expected to see significant revenue growth, with projected revenues of 94.22 billion HKD in 2024, increasing to 207.91 billion HKD by 2027, reflecting a growth rate of 51.82% in 2024 and 31.60% in 2027 [11][15]. Summary by Sections Company Overview - The total share capital is 1.65 billion shares, with a total market capitalization of 1,225 billion HKD [2]. - The company has a strong pipeline with multiple important developments expected in 2025, including approvals for various treatments [9]. Clinical Data - IBI363 showed a median progression-free survival (mPFS) of 9.3 months and a 12-month overall survival (OS) rate of 70.9% in patients with immune-resistant lung squamous cell carcinoma [4]. - In CRC patients, IBI363 demonstrated a median overall survival (mOS) of 16.1 months, indicating a significant improvement over existing treatment options [5]. - For melanoma, IBI363 achieved an mPFS of 5.7 months, with ongoing trials comparing it to pembrolizumab in treatment-naive patients [6]. Financial Projections - The company is projected to achieve a net profit of 6.23 billion HKD in 2025, with a significant increase to 30.77 billion HKD by 2027, reflecting a net profit growth rate of 132.26% in 2027 [11][15]. - The earnings per share (EPS) is expected to rise from -0.06 HKD in 2024 to 1.87 HKD in 2027 [11][15]. Valuation - The valuation methods used include DCF and NPV, resulting in a target market value of 1,574 billion HKD, which corresponds to the target stock price of 95.42 HKD [10].

Investment Rating - The report maintains a "BUY" rating for Innovent Biologics, indicating a potential return of over 15% over the next 12 months [16]. Core Insights - Innovent Biologics is entering a phase of sustainable profitability, having achieved a full-year non-IFRS net profit of RMB332 million in FY24, driven by strong product revenue growth and one-off license fee income [8]. - The target price has been revised upwards from HK$57.67 to HK$61.71, reflecting a 33.6% upside potential from the current price of HK$46.20 [3][8]. - The company is advancing its next-generation immuno-oncology (IO) therapies and antibody-drug conjugates (ADCs), with significant clinical programs underway [8]. Financial Summary - Revenue is projected to grow from RMB6,206 million in FY23 to RMB11,356 million in FY25, representing a year-on-year growth of 51.8% [2][13]. - Net profit is expected to turn positive in FY25, reaching RMB445.7 million, with EPS projected at RMB0.27 [2][11]. - R&D expenses are forecasted to remain stable, while gross profit margin is expected to expand to 84.9% in FY24 from 82.8% in FY23 [2][8]. Share Performance - The market capitalization of Innovent Biologics is approximately HK$75.68 billion, with a 52-week high of HK$51.15 and a low of HK$30.00 [3][4]. - The stock has shown strong performance, with a 1-month absolute return of 14.2% and a 3-month return of 29.8% [5]. Pipeline and Growth Potential - Innovent has a robust pipeline with over 10 ADC clinical programs and is focusing on combination trials with its next-generation IO therapy, IBI363 [8]. - The company aims to initiate multiple Phase 3 trials by 2030, targeting global markets with its innovative therapies [8].