Jinwu Financial News | According to the Bank of Commerce International Development Report, according to A-share disclosure, Rongchang Biotech (09995) recorded revenue of 330 million yuan in 1Q24, a year-on-year increase of 96.4%, and an increase of 5.4% over 4Q23. Among them, Tetasip and Verdicitol sold 170 million yuan and 160 million yuan respectively. Non-net loss of 350 million yuan was deducted in 1Q24, which was significantly narrower than 480 million yuan in 4Q23. Looking ahead to 2024, management will maintain the guideline of revenue growth of at least 50%, while R&D and sales expenses will be further reduced, and the annual capital requirement will be about 15-20 billion yuan.
According to this report, it is recommended to focus on: 1) the first human phase I/II study data of mesothelin ADCRC88; 2) two UCII studies with verdicitol. In addition, the company's overseas expansion is getting better: 1) Taitasip SLE III will begin enrollment in June, and SLE Phase II and MGIII will also be launched in the near future. 2) Verdicitol is expected to be submitted to the BLA in the US on 1Q25 and is expected to be approved on 2H25. 3) RC88's overseas development and cooperation is the next priority.
The bank kept the company's profit forecast unchanged: 2024-26E net loss gradually narrowed, and break-even was achieved in 2027. In 2024, the company had many catalysts in product commercialization, clinical data reading, domestic regulatory approval, overseas travel, etc., and the bank maintained a purchase rating and target price of HK$56.