Event Overview

The company released the third quarter report of 2024: the company achieved operating income of 977 million yuan (+6.77%) in the first three quarters of 2024, net profit attributable to the parent company of 177 million yuan (-7.50%), and net profit attributable to the parent company of 174 million yuan (-7.50%). In 2024Q3, the company achieved operating income of 319 million yuan (-2.52%), net profit attributable to the parent company of 71 million yuan (-13.73%), and net profit of 68 million yuan (-17.34%).



According to the company's third quarter report for 2024: (1) the company's phase II clinical trials for the two indications of BGM0504 injection weight loss and type 2 diabetes treatment in China have achieved the expected goals, among which the bariatric indication has obtained the ethical approval for phase III clinical trials, and the first subject has been enrolled, and the phase III clinical study needs to be completed in the follow-up, and it can only be produced and marketed after being reviewed and approved by the State Food and Drug Administration; The phase III communication for hypoglycemic indications has been replied by the CDE and agreed to carry out phase III clinical trials, and the phase III clinical trial can only be carried out after obtaining the clinical trial ethics approval from the hospital. (2) The indication for weight loss of BGM0504 injection has been approved for IND in the United States, and the first subject has been enrolled; (3) Oral BGM0504 is currently in the preclinical research stage. We believe that with the acceleration of the clinical progress of the company's innovative drug products, it is expected to help the company's performance grow rapidly in the future; Also according to the company's third quarter report in 2024: in terms of domestic registration, the company's salmeterol ticasone inhalation powder aerosol, gallium [68Ga]PSMA-0057 injection, and lutetium [177Lu]PSMA-0057 injection have obtained the drug clinical trial approval notice. In terms of international registration, the New Drug Application (IND) for the indication of weight loss for BGM0504 injection was approved in the United States, fondaparinux injection was approved in Indonesia, eribulin mesylate API passed the DMF technical review in the United States and was approved in Japan, and anidulafungin API and fondaparinux were approved in India. BGM0504 Injection submitted IND application for hypoglycemic indication to Indonesia, DABAVANCIN hydrochloride API to Canada for DMF, vorcyclosporine API and saxagliptin intermediate to the United States for DMF, and sugammadex sodium API to Australia.

Investment Advice

Maintain the company's profit forecast, that is, the company's operating income is expected to be 13.02/14.87/1.762 billion yuan in 2024-2026, and EPS in 2024-2026 will be 0.52/0.61/0.69 yuan, corresponding to the closing price of 35.56 yuan/share on November 11, 2024, and the PE will be 69/59/51 times, respectively, maintaining the company's "overweight" rating.

Risk Warning

: R&D risk of innovative drugs, risk of product substitution, price risk affected by policies such as consistency evaluation and volume procurement, macro environment risk, and approval risk of private placement