Caixin News Agency, November 14th - Puyin International released a research report, maintaining the "buy" rating of BeiGene (688235) on US and Hong Kong stocks, and adjusting the target prices of US and Hong Kong stocks to 255 US dollars and 153 Hong Kong dollars; Downgrading the A-share rating to 'hold' and maintaining the A-share target price of RMB 181.
In the third quarter of 2024, the company's performance was slightly lower than expected, but it achieved adjusted Non GAAP operating profit better than expected for two consecutive quarters: the total revenue of the company in the third quarter reached 1.002 billion US dollars (year-on-year+28.2%, month on month+7.8%), and the net loss was 121 million US dollars (year-on-year -156.3%, month on month+0.8%), which is basically in line with Visible Alpha expectations and lower than Puyin International's expectations, mainly due to slightly lower than expected gross profit margin and slightly higher than expected R&D expenses.
Zebutinib sales in the United States slowed down in the third quarter compared to the previous quarter, mainly due to seasonal factors and the impact of one-time drug purchases at the end of the second quarter, while sales in Europe continued to grow strongly.
The gross profit margin was temporarily affected by the depreciation of new production lines, and the sales management expense ratio further decreased. The R&D expense ratio in the third quarter was 496 million US dollars (year-on-year+9.5%, month on month+9.2%), with a slight increase compared to the second quarter, mainly due to continuous investment in R&D projects; The sales management expenses were $455 million, with an expense ratio of 45.4%, slightly lower than the second quarter (47.8%), reflecting higher operational efficiency. In the future, with the further expansion of revenue scale, we expect that there is still room for further decline in the sales management expense ratio.
In addition, BeiGene's research and development is progressing smoothly, and the next step of the pipeline will focus on BCL2, BTKCDAC, and CDK4 inhibitors.
In the end, Puyin International maintained BeiGene's "buy" rating on the US and Hong Kong stocks, and adjusted the target prices for the US and Hong Kong stocks to $255 and HKD 153; Downgrading the A-share rating to 'hold' and maintaining the A-share target price of 181 yuan.