[Headline announcement Nuggets]

Shandong Gold (01787): Profitability increased, third quarter increase 239.59% year over year

According to the Zhitong Finance App, Shandong Gold announced that in the third quarter of 2023, it achieved operating income of 13.888 billion yuan, up 38.95% year on year; net profit attributable to shareholders of listed companies was 465 million yuan, up 239.59% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 398 million yuan, up 172.89% year on year. The company achieved revenue of 41,323 billion yuan in the first three quarters, an increase of 3.75% over the previous year, and realized net profit of 1,345 billion yuan, an increase of 94.12% over the previous year. In addition, the company achieved operating cash flow of 4.768 billion yuan in the first three quarters, an increase of 135.23% over the previous year.

Comment:The company's performance in the first three quarters was good, mainly because the sales price of gold was superior to the same period last year. However, there was only a slight increase in homegrown gold in the third quarter, while interest expenses increased quarterly. A large part of the interest increase was due to the acquisition of shares in Yintai Gold. The company completed the acquisition of 20.93% of Yintai Gold's shares on July 20, 2023. By the end of 2022, Yintai Gold had 173.9 tons of gold resources. Completing this acquisition greatly increased the company's gold resources. In terms of prospecting and storage growth, Jiaojia Gold Mine, Jinzhou Company, Linglong Gold Mine, and Sanshandao Gold Mine added 3.58 tons, 2.5 tons, 1.85 tons, and 1.07 tons of gold, respectively, through prospecting. As prospecting increases in old mines and new mergers and acquisitions projects continue to advance, the company's mining production is expected to continue to increase in the future. In terms of mergers and acquisitions of foreign resources, Shandong Gold said that all work on the Catino project is progressing smoothly, and it is expected that the production date will be earlier than the project design. What is worth looking forward to is that the company's previous announcement shows that according to Shandong Gold Group's commitment to avoid competition from peers, the prospecting rights of the Xiling Gold Mine will be injected into the company. Overall, with the further escalation of the conflict between Palestine and Israel, the price of gold is expected to rise again, bringing new impetus to Shandong's gold performance. Furthermore, the acquisition of Yintai to increase production capacity and other asset injections is also a major point of interest.

[Key Announcements Nuggets]

Junshi Biotech (01877): Treprilizumab has been approved by the FDA for listing in domestic and foreign markets and is worth looking forward to

Zhitong Finance App News, Junshi Biotech (01877) released an announcement. Recently, the company's partner Coherus BioSciences, Inc. (Coherus) received a notice from the US Food and Drug Administration (FDA) that treprilizumab (US trade name: LOQTORZI) combined with cisplatin/gemcitabine as first-line treatment for adult patients with metastatic or recurrent locally advanced nasopharyngeal cancer, and as a monotherapy for recurrent, unresectable, or metastatic nasopharyngeal cancer that has progressed during or after treatment containing platinum The Biologics License Application (BLA) for adult patients has been approved. Treprilizumab became the first drug approved for nasopharyngeal cancer treatment in the US, and the first innovative biologic drug developed and produced independently in China with FDA approval for marketing.

Comment:Treprilizumab is the first domestically produced monoclonal drug targeting PD-1 approved for marketing in China. It has won the “China Patent Gold Award”, the highest award in the field of national patents. So far, more than 40 clinical studies covering more than 15 indications have been carried out worldwide (including China, the United States, Southeast Asia and Europe), covering more than 40 company-initiated clinical studies covering more than 15 indications. Key registered clinical studies that are ongoing or have been completed evaluate the safety and efficacy of treprilizumab within a range of tumor types. As of the date of this announcement, 6 indications of treprilizumab have been approved in China. In December 2020, treprilizumab injections passed national health insurance negotiations for the first time. Currently, 3 indications have been included in the national health insurance catalogue (2022 edition). It is the only anti-PD-1 monoclonal drug used to treat melanoma in the national health insurance catalogue. The market predicts that the company's PD1 domestic sales are expected to exceed 3 billion dollars, and there are many patients in Hong Kong. In addition to the US market, overseas markets are worth looking forward to. The current valuation seems to be at the bottom, and future cash flow will continue to improve.

[List of important Hong Kong stock announcements]