Event

On March 28, 2025, Tebao Biotech announced its 2024 annual results, and the company achieved operating income of 2.817 billion yuan, a year-on-year increase of +34.13%; net profit attributable to the parent company was 828 million yuan, a year-on-year increase of +49.00%; net profit after deducting non-attributable to the parent company was 827 million yuan, a year-on-year increase of +42.73%. In a single quarter, the company's 2024Q4 revenue was 862 million yuan, a year-on-year increase of +34.65%; net profit attributable to the parent company was 273 million yuan, a year-on-year increase of +46.59%; net profit after deducting non-attributable to the parent company was 246 million yuan, a year-on-year increase of +46.13%.

Comments:

Core products are mature, and the expense ratio tends to be stable

The company's overall gross profit margin was 93.49%, +0.15 percentage points year-on-year; The expense ratio for the period was 59.78%, a year-on-year increase of -1.37 percentage points; Among them, the sales expense rate was 39.52%, a year-on-year increase of -0.90 percentage points; R&D expense ratio was 10.46%, -0.49 percentage points year-on-year; the management expense ratio was 9.88%, -0.13 percentage points year-on-year; The financial expense ratio was -0.08%, +0.15 percentage points year-on-year; Net operating cash flow was 431 million yuan, -15.91% year-on-year. With the increasing maturity of core products, the company's operating conditions have also tended to be stable.

Consolidate the position of Pagobin as a first-line drug and deepen the clinical cure of hepatitis B The

company's core product Paigebine is a first-line drug for chronic hepatitis B, which has obvious clinical value in the dual effects of inhibiting viral replication and enhancing immunity. The company continues to participate in and support a series of public welfare or scientific research projects for the clinical cure of hepatitis B and liver cancer prevention, including "Everest", "Oasis", "Unnamed", "Sprout", "Starlight", "Pilot", "Win Lead", "Guangyu", "Happy Life", etc., and a series of evidence-based medical evidence has further consolidated the opportunity for the whole population of hepatitis B to achieve a higher clinical cure rate based on the treatment strategy of pegylated interferon α effectively reduce the risk of liver cancer, and verified the α of pegylated interferon in children, pregnant women, postpartum, The therapeutic potential in populations with uncertain phase and inactive HBsAg carriers has been presented on international academic platforms such as the Asia-Pacific Association for the Study of Liver Diseases (APASL), the European Association for the Study of the Liver (EASL), and the American Association for the Study of Liver Diseases (AASLD) Annual Meeting.

Endogenous, broadening the variety of self-developed biological products, and a variety of products to be listed

The company has made steady progress in independent innovation of biological products. In January 2024, the company's self-developed drug registration and marketing authorization application for Yipei Growth Hormone Injection (trade name: Yipeisen) was accepted by the State Food and Drug Administration; The Y-type polyethylene glycol recombinant human erythropoietin (YPEG-EPO) project is preparing for the phase III clinical study; In July 2024, the new indication of "essential thrombocythemia" was approved by the NMPA. In January 2025, the new indication of Pekin "suitable for reducing the incidence of preeclampsia" was approved by the NMPA for drug clinical trials; AK0706, human interferon α2b spray, ACT500 project are in phase I clinical study; The ACT50, ACT60, and ACT300 programs are conducting pharmaceutical and preclinical studies. The



Company continues to carry out cooperation with the outside world, actively expands the cooperative development agreement for obstetric surgery in the field of liver disease prevention and treatment, and obtains the exclusive right to develop and commercialize the nucleic acid technology in China from Aligos. In December 2023, it signed an exclusive license agreement with Suzhou Alphamab Oncology to obtain the exclusive license rights of the company's products in the field of non-alcoholic fatty liver disease, and selected KN069 as the first licensed product in July 2024. In September 2024, it signed the "Technology Licensing and Development Cooperation Agreement" with Fujiji Pharmaceutical, and obtained NM6606 and related intellectual property rights of Fujiji Pharmaceutical, which will be used to develop monotherapy products for the treatment of liver fat metabolism and liver fibrosis-related diseases.

Investment Advice

We expect that the company's revenue in 2025~2027 will be 37.4/48.0/6.06 billion yuan, a year-on-year increase of 32.8%/28.3%/26.2% respectively, and the net profit attributable to the parent company will be 11.4/15.6/2.05 billion yuan respectively, a year-on-year increase of 37.2%/37.7%/31.1% respectively, and the corresponding valuation will be 28X/21X/16X. We are optimistic about the company's new development model of endogenous + epitaxial development in the field of liver diseases and emerging technologies based on Paigbing, and maintain a "buy" rating.

Risk Warning:

The risk of sales fluctuation, industry policy uncertainty, new drug research and development risk, etc.