CICC released a research report stating that maintaining the “outperforming industry” rating of Hanson Pharmaceuticals (03692), since the cooperative down payment accounting section will be confirmed in 2024 and the bank expects the company's three fees to be well controlled, the 24-year revenue and net profit forecast to be raised 2.0%/11.0% to 115.66/3.43 billion yuan, and introduced a 25-year profit forecast of 3.56 billion yuan for the first time. The target price was increased by 27.2% to HK$17.81 as the company's pipeline of innovative drugs entered the harvest period.
According to the report, in 2023, the company's revenue from innovative drugs and cooperative products increased to 67.9% (+14.5pct YoY), of which revenue from cooperative products was 700 million yuan, mainly down payment accounts authorized by B7H4 ADC to GSK. The company expects that the down payment of about 1.3 billion yuan authorized by another B7H3 ADC to GSK will be recorded in 24 years.
By sector: 1) Anti-cancer business revenue of 6.17 billion yuan (+11.7% YoY) in 23 years. Amelot doubled its volume after being included in health insurance in March 2023. The bank expects sales to increase by about 12% year on year in 2023 and close to 20% year on year; 2) Anti-infective business revenue of 1.27 billion yuan (+1.6% YoY) in 23 years, central nervous system business revenue of 1.37 billion yuan (-8.5% YoY), and revenue of other businesses in 23 years was 1.3 billion yuan (+16.3% YoY). In 2023, the company reached a number of commercial partnerships, including the external licensing of GSK, the introduction of Deqi Pharmaceutical Celinisole, and the expansion of EGFRxCmet dual-antibody cooperation with Pumis in March '24.