Jinwu Financial News | According to CITIC Construction Investment Research Report, Rongchang Biotech (09995) achieved revenue of 1,083 billion yuan in 2023, an increase of 40.26% over the same period last year, and achieved strong growth on the revenue side. In 2024, the company has many catalysts. Overseas SLE3 clinical phase I data of titacipu is expected to be read. At the same time, overseas back-line UC indications for verdicitumab are expected to be completed and submitted for marketing. The bank believes that as the company's commercialization team becomes more mature, the company's two core products will see a significant increase in sales and cost control. Sales of both products are expected to increase by more than 50% year-on-year in 2024, and subsequent commercialization can be expected. At the same time, as the company plans to raise no more than 2.55 billion yuan in capital from specific targets, the company's overall financial structure is expected to be optimized, and research and development of new drugs under development is expected to be promoted.
According to the bank, the company has established and perfected three innovative core technology platforms, and its independent research and development capabilities are strong; the company's commercialization capabilities are expected to continue to expand, and the company's commercialization capabilities have been verified; at the same time, the company's internationalization has begun, and cooperation has been reached with SEAGEN on RC48's overseas rights. RC18 is actively promoting clinical trials, and overall operation is becoming more mature and stable. However, as the company is affected by changes in the industry, the bank expects revenue of 1,550 billion yuan, 2,453 billion yuan, and 3.173 billion yuan respectively in 2024-2026. According to the DCF model, the bank expects the company to have a reasonable market value of HK$22.7 billion, lower the target price to HK$41.66, and maintain the “buy” rating.