event description

on November 14, 2023, baiji shenzhou released the third quarter report of 2023: revenue of 5.624 billion yuan (year-on-year +111.55%) and net profit of 1.341 billion yuan (year-on-year-on-year-on-year-on -3.77 billion yuan) in the third quarter of 2023.

Event Review

Revenue increased year-on-year in a single quarter, and Baiyueze U.S. volume remained beautiful. In the first three quarters of 2023, the company realized operating income of 12.875 billion yuan (+87.45% year-on-year) and net profit of -3.878 billion yuan (-10.434 billion yuan in the same period last year); In 2023, the company realized a revenue of 5.624 billion yuan (+111.55% year-on-year, +34.4 month-on-month) and a net profit of 1.341 billion yuan (-3.77 billion yuan in the same period last year). According to the company's U.S. stock announcement, the company achieved product sales revenue of $0.595 billion in the third quarter, an increase of 70.3 percent over the same period last year, mainly due to the continued growth of Baiyueze's global sales and Baizean's sales in China. In terms of specific breakdown, the global sales of Baiyueze in the third quarter of 2023 was US $0.358 billion (year-on-year +130.0%), of which US sales were US $0.27 billion (year-on-year +149.8%, month-on-month +20.9%), China sales were US $0.047 billion (year-on-year +20.8%), and other parts of the world sales were US $0.04 billion (year-on-year +410.2%).

bazan's cumulative sales in China were $0.144 billion (+12.6 percent year-on-year).

global expansion is progressing smoothly, PD-1 the United States listing application was accepted. The company made a number of key global advances in the third quarter: 1) Baiyueze was used to treat ≥ 2L relapsed or refractory (R/R) follicular lymphoma (FL) adult patients with positive European CHMP opinion; 2) Baiyueze was approved by the European Commission (EC) for monotherapy in adult patients with unresectable, locally advanced or esophageal metastatic squamous cell carcinoma (ESCC) who had previously received platinum-containing chemotherapy; 3) The U.S. FDA has accepted the New Drug Marketing Authorization Application (BLA) for the first-line treatment of unresectable, recurrent, locally advanced or metastatic ESCC patients.

to maintain high investment in research and development, the cost is clearly controlled. 2023 single third quarter research and development investment of 3.295 billion yuan (YoY +9.8%), the first three quarters of research and development investment of 9.177 billion yuan (YoY +14.5%), still maintain high research and development investment. But at the same time, the company's cost indicators have also been greatly improved, operating efficiency significantly improved. In the third quarter of 2023, the company's sales cost was 1.759 billion yuan, with a corresponding sales cost rate of 31.3, down 14.5pct from the previous quarter. The management cost is 0.949 billion yuan, the corresponding management cost rate is 16.9, down 4.63pct from the previous month. The research and development cost is 3.295 billion yuan, and the corresponding research and development cost rate is 58.6, down 14.6pct from the previous month.

earnings forecast and investment advice: the company's net profit from 2023 to 2025 is expected to be -6.969 billion, -1.457 billion and 1.395 billion yuan respectively, and the corresponding EPS is -5.15, -1.08 and 1.03 yuan respectively, maintaining the "buy" rating.

risk tips

1, product development and listing progress is not as expected;

2, the market product competition intensifies;

3, overseas commercialization is not as expected.