BOCOM INTL: Raises BEIGENE (06160) target price to 159 Hong Kong dollars. continuous improvement in Q3 product sales and operations.

BOCOM INTL has released a research report stating that they have raised the target price of BEIGENE (06160) to 159 Hong Kong dollars, based on the 3Q performance and the continued strong trend of product volume. They have raised the revenue forecast for 2024-26 by 6-7%, and also raised the peak sales forecast for zebutinib by 4% to 5.4 billion dollars. The report mentions that in the next 12 months, they will focus on: 1) more indications for torrelizumab 1LESCC, 1LGC, etc. being approved in core developed countries such as Europe and America, as well as data for I/O combination therapy (torrelizumab combined with OX40, LAG3, etc.); 2) Bcl-2 inhibitor sonrotoclax starting two Phase III studies in 1H25 (R/RCLL and R/RMCL), and initial data on more indications; 3) BTK degrader starting the first Phase III clinical trial in 1H25 (R/RCLL); 4) more candidate drug molecules for solid tumors entering clinical stages: 8 have entered clinical trials this year, with an additional 4 expected before the end of the year. The report also states that the company's total revenue increased by 28.2% year-on-year to 1.002 billion (in US dollars), with product revenue at 993 million (up 66.9% year-on-year). This includes global sales of zebutinib at 690 million (up 8.3% quarter-on-quarter and 93.0% year-on-year); zebutinib's share in new 1/2LCLL cases in the United States continues to rise, surpassing acalabrutinib and taking the lead. Torrelizumab monoclonal antibody sales continued to climb steadily, reaching 163 million in 3Q (up 3.2% quarter-on-quarter and 13.2% year-on-year). The company's adjusted non-GAAP operating profit in 3Q was 65.63 million, marking two consecutive quarters of positive non-GAAP operating profit. The overall gross margin for the company in 3Q24 was 83.0%. In terms of operating expenses, the company's research and development expense ratio and sales management expense ratio were 49.5% and 45.4% respectively, down by 4.9% and 6.4% quarter-on-quarter, and down by 8.5% and 1.2% year-on-year, reflecting the company's gradually improving operational efficiency.