UBS lowers the target price of INNOVENT BIO to 124 yuan, reiterating a "Buy" rating

UBS published a research report indicating that INNOVENT BIO (01801.HK) had a revenue of RMB 7.1 billion in the second half of last year, an annual increase of 29.6%, which met expectations; during this period, the net loss was RMB 21 million, falling short of the bank's and market expectations. The total revenue for the entire year was RMB 13 billion, an annual increase of 38.4%, with a net profit of RMB 814 million, successfully turning a profit.

In addition, INNOVENT BIO maintains its targets of achieving product sales of RMB 20 billion by 2027 and having five candidate drugs enter global Phase III clinical trials by 2030.

UBS has adjusted its expenditure forecast for the company based on INNOVENT BIO's data from the second half of last year, and considering the general commercialization of biopharmaceuticals and the initiation of global Phase III clinical trials, it has lowered its earnings per share forecasts for this year and next by 52% and 27%, respectively, but kept the peak sales forecast unchanged. The target price has been reduced from RMB 131.2 to RMB 124, reiterating a "Buy" rating