CMB International: Maintains "Outperform" rating on INNOVENT BIO (01801) with a target price lowered to HK$59.

Bank of China International released a research report stating that it has lowered the target price of INNOVENT BIO (01801) from 63 Hong Kong dollars to 59 Hong Kong dollars, maintaining a "outperform" rating. The bank has revised down its total revenue forecast for the 2024/25 fiscal year by 3% and 4% to 8.6 billion yuan and 12 billion yuan. It also mentioned that the company may achieve annual net profit for the first time by the end of 2025. The bank believes that INNOVENT BIO has three other candidate drugs expected to obtain market approval in mainland China by the end of 2025. The report stated that INNOVENT BIO announced a 25% year-on-year increase in fourth quarter product revenue to 2 billion yuan (the same below), with total product revenue for 2024 growing by 40% year-on-year to 8.2 billion yuan, slightly lower than the bank's estimate of 8.3 billion yuan and 8.4 billion yuan, but still robust. The bank has adjusted its net loss forecast for 2024 from 360 million yuan to 420 million yuan, and has lowered its adjusted profit forecast for 2025 from 247 million yuan to 209 million yuan. The bank maintains its unchanged adjusted net profit forecast for 2026. Sales of new products will increase from 2025 onwards.