1季度产品销量强劲

Strong product sales in1Q Strong salesmaintained in 1Q24. HenliusBiotech (Henlius)recordedtotalrevenueofRMB1.349bnin 1Q24,up35% YoY. Of this,HANQUYOU’s sales inChina wasRMB671mn (+25% YoY,-4% QoQ), which accounted for 23% of ourpreviousFY24 estimate.In 1Q24,serplulimab(PD-1)experienced robustgrowth,+34% YoY or +31% QoQ to RMB334mn, accounting for 23% of ourpreviousFY24 estimate. We think HANQUYOUwill not be affected byVBP risksin 2024 due to relatively moderate competition landscapein the Herceptin Target Price(Previous TPUp/DownsideCurrent Price Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk Significant potentialof serplulimab (PD-1) in SCLC and CRC.Colorectalcancer (CRC) is the second most common cancer in China (link). 85%ofCRCare cold tumors classified as MSS CRC(link), which currently has no I/Otherapies available. However,thePh2 data released early this year showspromising potential forserplulimab in thishighly underserved MSS CRC patientpopulation (CMBI report,link).The updated data will be released at ASCO inJun (link). We look forward to the initiation of Henlius’ Ph3 trial in Asia(PFSendpoint)for1LmCRC,combining serplulimab+HLX04+ chemo,with a globalPh3 trial (OS endpoint) to follow. In addition, serplulimabholds large globalpotential,particularlyfortreatingSCLC. The NDAofserplulimabfor 1LES- Andy WANG(852) 3657 6288andywang@cmbi.com.hk Innovative assets with global BD potential.HLX22 (anovel HER2 mAb) incombinationwith HANQUYOU and chemo had demonstrated overwhelmingPFSbenefitsin 1L GC compared with SoC (CMBI report,link). Henliusplans toinitiatea global Ph3 trialto assess this combinationin 1L GC in 2H24E. Henliushas developed a differentiated ADC platform leveraging MediLink’s payload-linkertechnology which enables selective release of payload in tumormicroenvironment. Based on this platform, HLX42 (EGFR ADC) has completedFPI in China, and received a fast track designation from FDA for EGFR-TKIresistantNSCLC.HLX42 showed promising potential in post osimertinibEGFRm NSCLC in preclinical studies. HLX43, an innovative PD-L1 ADC,enteredPh1 studiesin Chinain late 2023,with US INDapproval also obtained.We think Henlius is likely to achieve global BD deals for its innovative assets,such as HLX22, HLX42 and HLX43.Additionally, we expect Henlius to file NDAs Source: FactSet Maintain BUY.We anticipatecontinuouslystrong sales performance of Henliusin 2024 and beyond.Weraisedour DCF-based TPfromHK$18.67to HK$20.33(WACC 10.3%, terminal growth3.0%). Disclosures& Disclaimers Analyst Certification The research analyst who is primaryresponsible for the content of this research report, in whole or in part, certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about thesubject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in theHong Kong listed companies covered in this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORMMARKET-PERFORM :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line withthe relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 months CMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from