CICC: maintains "outperform" rating on ABBISKO-B (02256), raises target price to 9.2 Hong Kong dollars.

Zhongjin released a research report stating that it maintains a "outperform" rating on ABBISKO-B (02256) and raises the target price by 36.1% to 9.2 Hong Kong dollars. Due to the smooth progress of the company's innovative pipeline, it is expected to see intensive harvesting starting in 2025. The bank has raised its net profit forecast for 2025 by 65.7% to 44.73 million yuan and introduced a net profit forecast for 2026 of 320 million yuan. The company achieved profitability in 2024, with revenue of 504 million yuan, up 2,544% year-on-year, in line with the bank's expectations. Net profit attributable to the parent company was 28.3 million yuan, exceeding the bank's expectations, mainly due to operational efficiency higher than expected. Key points from Zhongjin: Achieving profitability in 2024, with ample cash on hand to support sustainable research and development According to the company's announcement, the company achieved profitability for the first time in 2024, mainly due to receiving $70 million in Merck licensing income and a $1 million milestone payment from Shanghai Allist Pharmaceuticals Co., Ltd. As of the end of 2024, the company's cash and bank balance was 1.959 billion yuan, and the bank believes that the company's current cash is sufficient to continue to support its research and development. In 2024, the international Phase III clinical trial of Pemigatinib achieved positive topline results, and the bank expects it to submit a New Drug Application (NDA) in 2025. The company announced in November 2024 that the global Phase III MANEUVER study of Pemigatinib for the treatment of tenosynovial giant cell tumor (TGCT) achieved positive results. The bank had previously released a report stating that the data had the best potential in its category. The bank expects Pemigatinib to be submitted for marketing approval in China in 2025 and recommends continued monitoring of the partner's exercise of rights. Epagocitinib is expected to start registration clinical trials in 2025 According to the company's announcement, in December 2024, Epagocitinib was approved for registration clinical trials in China. This study is a controlled study comparing best supportive care and placebo for the treatment of FGF19+ advanced or unresectable liver cancer (HCC) above 2L. According to the company's announcement, the ORR of the Epagocitinib 220mg BID group in FGF19+ HCC treated with ICI and mTKIs was 44.8%, and the ORR of the combination of Atesetuzumab and FGF19+ HCC treatment was 50%. The bank believes that both monotherapy and combination regimens demonstrate impressive efficacy. It is recommended to pay attention to further potential data readouts and progress in registration clinical trials in 2025. The oral PD-L1 ABSK043 ESMO-Asia 2024 reading shows competitive Phase I data According to the company's announcement, in the evaluation group of 49 evaluable initial IO patients, the ORR of ABSK043 was 20.4% and the DCR was 57.1%. Among the 15 NSCLC patients who had not received IO treatment, the ORR was 33.3% and the DCR was 73.3%. In addition, the company announced that the selective FGFR2/3 inhibitor ABSK061 submitted an IND application in December 2024 for the treatment of achondroplasia (ACH) and the company plans to conduct a Phase I clinical trial in 2025. Risk warning: research and development failures; research and development expenses exceed expectations; external cooperation progress is lower than expected.