研究报告全文：MN31Mar2023CMBInternationalGlobalMarketsEquityResearchCompanyUpdateRemeGen9995HKWideclinicalstudiestounlockglobalpotentialInFY22RemeGenrecordedrevenueofRMB768mnincludingRMB738mnTargetPriceHK7189productsalesfromRC18andRC48comparedtoRMB131mnproductsalesinPreviousTPHK7913FY21TheCompanyimproveditsproductgrossprofitmarginfrom489inUpDownside6232021to634in2022TheSGAexpensesinFY22wereRMB713mn477CurrentPriceHK4430YoYduetothesignificantexpansioninsalesforceandincreasingmarketingactivitiesfollowingtheapprovalsofRC18andRC48in1H21TheRDChinaHealthcareexpensesincreased381YoYtoRMB982mninFY22mainlydrivenbytheJillWUCFAincreaseinclinicaltrialspendingandemployeebenefitexpensesInFY22the85239000842CompanyrecordednetlossofRMB999mncomparedtonetprofitofRMB276mnjillwucmbicomhkinFY21RecallthatinFY21RemeGenreceivedcollaborationincomeofAndyWANGRMB1291mnforout-licensingRC48toSeagenAsofend-2022theCompany85236576288hasahealthycashbalanceofRMB207bnandywangcmbicomhkDevelopmentofRC18formultipleautoimmunediseasesmovedtothenextstageConditionallyapprovedforSLEinChinatheconfirmatoryPh3StockDataMktCapHKmn241109trialofRC18inSLEhasreleasedpromisingefficacydataandthefullAvg3mthstoHKmn569approvaliscurrentlyunderCDEreviewTheCompanyisalsoexploring52wHighLowHK70052600RC18forthetreatmentofchildSLEandlupusnephritisRemeGenhasTotalIssuedSharesmn5443SourceFactSetreleasedpositivePh2studyresultsforIgApSSandMGallofwhicharehighlyunderservedpatientpopulationsinChinaThusRemeGenwillallShareholdingStructurestartpatientenrolmentofPh3trialsfortheabove-mentionedthreeHKSCCnomineeslimited348indicationsin2Q23inChinaIntheoverseasmarketstheMRCTtrialofYantaiRongda188SourceHKExRC18forSLEisenrollingpatientsacrosstheUSEuropeAPACandotherregionsTheCompanywillstartaPh3trialofRC18forMGintheUSinSharePerformance2H23AdditionallythePh3trialsofRC18forIgAandpSShavealsobeenAbsoluteRelativeapprovedbytheFDAWithpromisingPoCdatareleasedweseelarge1-mth-138-1603-mth-235-255potentialofRC18fortheseunderservedautoimmunediseasesandexpect6-mth164-13potentialblockbusterout-licensedealSourceFactSetRC48toexplorefrontlinetreatmentandunderservedHER2-low12-mthPricePerformancemarketTheNRDLaddedRC48fortreatmentof2LUCwithstablepricingwhichwilldrivetheproductsalesremarkablyToexploreRC48spotentialinearlierlinesofUCtreatmentRemeGenisconductingseveralstudiesincludingaPh3trialofRC48toripalimabfor1LHER2-expressingUCaPh2trialforperioperativeMIBCandplanningtostartatrialforNMIBCForGCRemeGenreceivedtheINDapprovaltoinitiateaninvestigationalstudyassessingRC48toripalimabchemotrastuzumabfor1LHER2-SourceFactSetexpressingGCForBCtreatmentaPh3trialforHER2-lowBCisongoingwith279patientsenrolledbyend-2022RemeGenalsoreceivedINDRelatedreportapprovalsrecentlytoexploreRC48forBCneoadjuvanttreatmentincludingINITIATIONApioneerbiopharmainHRHER2-lowTuoyiletrozoleHER2pertuzumab-TuoyiandHR-innovativeADCandfusionproteinHER2-lowTuoyichemoIntheUSSeagenplanstostartaPh3trialofmedicineslink4Nov2022RC48Keytrudafor1LHER2-expressingUCin2H23MaintainBUYWerevisedourDCF-basedTPfromHK7913toHK7189WACC1095terminalgrowthrate30EarningsSummaryYE31DecFY21AFY22AFY23EFY24EFY25ERevenueRMBmn1424768128221703210YoYgrowthna461670693479NetprofitRMBmn276999916682305EPSReportedRMB057188168125056RDexpensesRMBmn7119821000950900AdminexpensesRMBmn220273391553690SourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE1MOREREPORTSFROMBLOOMBERGRESPCMBRGOORhttpwwwcmbicomhk31Mar2023Figure1Risk-adjustedDCFvaluationDCFValuationRMBmn2023E2024E2025E2026E2027E2028E2029E2030E2031E2032E2033E2034E2035EEBIT907648222532139827023906541264937406749371297179Taxrate00015151515151515151515EBIT1-taxrate907648222452118822973320460055196295636960606103DA275303314302291280271262254246239233227-Changeinworkingcapital1392502953294984935065313493596028037-Capex600600400100100100100100100100100100100FCFF1093119560232588119842985423153246083656964726267Terminalvalue81214FCFTerminalvalue10931195602325881198429854231532460836569647287481PVofenterpriseRMBmn33555NetdebtRMBmn878EquityvalueRMBmn34433Noofsharesmn544DCFpersharesRMB6326DCFpershareHK7189Terminalgrowthrate30WACC1095CostofEquity140CostofDebt45EquityBeta11RiskFreeRate30MarketRiskPremium100TargetDebttoAssetratio300EffectiveCorporateTaxRate150SourceCMBIGMestimatesFigure2SensitivityanalysisHKWACCTerminalgrowthrate995104510951145119540973687277870713564983591898284750768346246308721790071896568602325831675656909633358232079627269666061225643SourceCMBIGMestimatesFigure3CMBIGMestimatesrevisionNewOldDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY22EFY23EFY24ERevenue128221703210134421893247-5-1-1Grossprofit98417232564103117382594-5-1-1Operatingprofit907648222951762347NANANANetprofit916682305956776382NANANAEPSRMB168125056176143070NANANAGrossmargin767579387989767179377988003ppt001ppt001pptSourceCompanydataCMBIGMestimatesFigure4CMBIGMestimatesvsconsensusCMBIGMConsensusDiffRMBmnFY23EFY24EFY25EFY23EFY24EFY25EFY22EFY23EFY24ERevenue128221703210159723733907-20-9-18Grossprofit98417232564127819433149-23-11-19Operatingprofit907648222736374140NANANANetprofit916682305685352422NANANAEPSRMB171306130608NANANAGrossmargin767579387989800181898059-326ppt-251ppt-070pptSourceCompanydataBloombergCMBIGMestimatesPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE231Mar2023FinancialSummaryINCOMESTATEMENT2020A2021A2022A2023E2024E2025EYE31DecRMBmnRevenue01424768128221703210Costofgoodssold067270298447645Grossprofit0135749898417232564Operatingexpenses69810801497190024052869Sellingexpense2426344166710201348Adminexpense218220273391553690RDexpense4667119821000950900Others1011319915811969Operatingprofit669282992907648222Interestincome295783383Pre-taxprofit698276999916682305Incometax000000Minorityinterest000000Netprofit698276999916682305BALANCESHEET2020A2021A2022A2023E2024E2025EYE31DecRMBmnCurrentassets297723003212191319882680Cashequivalents276917572069925653925Accountreceivables07281241407602Inventories66280523408588813FinancialassetsatFVTPL000000Othercurrentassets143256339339339339Non-currentassets114018592809319635563704PPE80315782407278431333272Right-of-useassets138149205215225235Intangibles51317171718FinancialassetsatFVTPL131280808080Othernon-currentassets182108100100100100Totalassets411841596021510955446384Currentliabilities4316168928779741099Short-termborrowings10800000Accountpayables63159222206304429Othercurrentliabilities218405610610610610Leaseliabilities435260606060Non-currentliabilities929614914911492149Long-termborrowings000010002000Deferredincome444644444444Othernon-currentliabilities4751105105105105Totalliabilities5237131041102521233248Sharecapital490490544544544544Otherreserves310529574436354028772592Totalshareholdersequity359534464980408434213136Totalequityandliabilities411841596021510955446384PLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE331Mar2023CASHFLOW2020A2021A2022A2023E2024E2025EYE31DecRMBmnOperatingProfitbeforetaxation698276999916682305Depreciationamortization4965193223251262Taxpaid000000Changeinworkingcapital117168287139250295Others105907879104154Netcashfromoperations6602641015474576183InvestingCapitalexpenditure443615800600600400Acquisitionofsubsidiariesinvestments10200000Netproceedsfromdisposalofshort-term10200000investmentsOthers362362626262Netcashfrominvesting479638862662662462FinancingDividendpaid000000Netborrowings4981080010001000Proceedsfromshareissues4508142312000Sharerepurchases04490000Others10555783383Netcashfromfinancing390462723068967917NetchangeincashCashatthebeginningoftheyear35276917572069925653Exchangedifference31100000Cashattheendoftheyear276917572185925653925GROWTH2020A2021A2022A2023E2024E2025EYE31DecRevenuenana461670693479Grossprofitnana633977751488PROFITABILITY2020A2021A2022A2023E2024E2025EYE31DecGrossprofitmarginna953648767794799Operatingmarginna198129270829969ReturnonequityROE4157823720218293GEARINGLIQUIDITYACTIVITIES2020A2021A2022A2023E2024E2025EYE31DecCurrentratiox693736222024VALUATION2020A2021A2022A2023E2024E2025EYE31DecPEna1528nanananaSourceCompanydataCMBIGMestimatesNoteThecalculationofnetcashincludesfinancialassetsPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE431Mar2023DisclosuresDisclaimersAnalystCertificationTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportinwholeorinpartcertifiesthatwithrespecttothesecuritiesorissuerthattheanalystcoveredinthisreport1alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthesubjectsecuritiesorissuerand2nopartofhisorhercompensationwasisorwillbedirectlyorindirectlyrelatedtothespecificviewsexpressedbythatanalystinthisreportBesidestheanalystconfirmsthatneithertheanalystnorhisherassociatesasdefinedinthecodeofconductissuedbyTheHongKongSecuritiesandFuturesCommission1havedealtinortradedinthestockscoveredinthisresearchreportwithin30calendardayspriortothedateofissueofthisreport2willdealinortradeinthestockscoveredinthisresearchreport3businessdaysafterthedateofissueofthisreport3serveasanofficerofanyoftheHongKonglistedcompaniescoveredinthisreportand4haveanyfinancialinterestsintheHongKonglistedcompaniescoveredinthisreportCMBIGMRatingsBUYStockwithpotentialreturnofover15overnext12monthsHOLDStockwithpotentialreturnof15to-10overnext12monthsSELLStockwithpotentiallossofover10overnext12monthsNOTRATEDStockisnotratedbyCMBIGMOUTPERFORMIndustryexpectedtooutperformtherelevantbroadmarketbenchmarkovernext12monthsMARKET-PERFORMIndustryexpectedtoperformin-linewiththerelevantbroadmarketbenchmarkovernext12monthsUNDERPERFORMIndustryexpectedtounderperformtherelevantbroadmarketbenchmarkovernext12monthsCMBInternationalGlobalMarketsLimitedAddress45FChampionTower3GardenRoadHongKongTel85239000888Fax85239000800CMBInternationalGlobalMarketsLimitedCMBIGMisawhollyownedsubsidiaryofCMBInternationalCapitalCorporationLimitedawhollyownedsubsidiaryofChinaMerchantsBankImportantDisclosuresTherearerisksinvolvedintransactinginanysecuritiesTheinformationcontainedinthisreportmaynotbesuitableforthepurposesofallinvestorsCMBIGMdoesnotprovideindividuallytailoredinvestmentadviceThisreporthasbeenpreparedwithoutregardtotheindividualinvestmentobjectivesfinancialpositionorspecialrequirementsPastperformancehasnoindicationoffutureperformanceandactualeventsmaydiffermateriallyfromthatwhichiscontainedinthereportThevalueofandreturnsfromanyinvestmentsareuncertainandarenotguaranteedandmayfluctuateasaresultoftheirdependenceontheperformanceofunderlyingassetsorothervariablemarketfactorsCMBIGMrecommendsthatinvestorsshouldindependentlyevaluateparticularinvestmentsandstrategiesandencouragesinvestorstoconsultwithaprofessionalfinancialadvisorinordertomaketheirowninvestmentdecisionsThisreportoranyinformationcontainedhereinhavebeenpreparedbytheCMBIGMsolelyforthepurposeofsupplyinginformationtotheclientsofCMBIGMoritsaffiliatestowhomitisdistributedThisreportisnotandshouldnotbeconstruedasanofferorsolicitationtobuyorsellanysecurityoranyinterestinsecuritiesorenterintoanytransactionNeitherCMBIGMnoranyofitsaffiliatesshareholdersagentsconsultantsdirectorsofficersoremployeesshallbeliableforanylossdamageorexpensewhatsoeverwhetherdirectorconsequentialincurredinrelyingontheinformationcontainedinthisreportAnyonemakinguseoftheinformationcontainedinthisreportdoessoentirelyattheirownriskTheinformationandcontentscontainedinthisreportarebasedontheanalysesandinterpretationsofinformationbelievedtobepubliclyavailableandreliableCMBIGMhasexertedeveryeffortinitscapacitytoensurebutnottoguaranteetheiraccuracycompletenesstimelinessorcorrectnessCMBIGMprovidestheinformationadvicesandforecastsonanASISbasisTheinformationandcontentsaresubjecttochangewithoutnoticeCMBIGMmayissueotherpublicationshavinginformationandorconclusionsdifferentfromthisreportThesepublicationsreflectdifferentassumptionpoint-of-viewandanalyticalmethodswhencompilingCMBIGMmaymakeinvestmentdecisionsortakeproprietarypositionsthatareinconsistentwiththerecommendationsorviewsinthisreportCMBIGMmayhaveapositionmakemarketsoractasprincipalorengageintransactionsinsecuritiesofcompaniesreferredtointhisreportforitselfandoronbehalfofitsclientsfromtimetotimeInvestorsshouldassumethatCMBIGMdoesorseekstohaveinvestmentbankingorotherbusinessrelationshipswiththecompaniesinthisreportAsaresultrecipientsshouldbeawarethatCMBIGMmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreportandCMBISwillnotassumeanyresponsibilityinrespectthereofThisreportisfortheuseofintendedrecipientsonlyandthispublicationmaynotbereproducedreprintedsoldredistributedorpublishedinwholeorinpartforanypurposewithoutpriorwrittenconsentofCMBIGMAdditionalinformationonrecommendedsecuritiesisavailableuponrequestForrecipientsofthisdocumentintheUnitedKingdomThisreporthasbeenprovidedonlytopersonsIfallingwithinArticle195oftheFinancialServicesandMarketsAct2000FinancialPromotionOrder2005asamendedfromtimetotimeTheOrderorIIarepersonsfallingwithinArticle492atodHighNetWorthCompaniesUnincorporatedAssociationsetcoftheOrderandmaynotbeprovidedtoanyotherpersonwithoutthepriorwrittenconsentofCMBIGMForrecipientsofthisdocumentintheUnitedStatesCMBIGMisnotaregisteredbroker-dealerintheUnitedStatesAsaresultCMBIGMisnotsubjecttoUSrulesregardingthepreparationofresearchreportsandtheindependenceofresearchanalystsTheresearchanalystwhoisprimaryresponsibleforthecontentofthisresearchreportisnotregisteredorqualifiedasaresearchanalystwiththeFinancialIndustryRegulatoryAuthorityFINRATheanalystisnotsubjecttoapplicablerestrictionsunderFINRARulesintendedtoensurethattheanalystisnotaffectedbypotentialconflictsofinterestthatcouldbearuponthereliabilityoftheresearchreportThisreportisintendedfordistributionintheUnitedStatessolelytomajorUSinstitutionalinvestorsasdefinedinRule15a-6undertheUSSecuritiesExchangeActof1934asamendedandmaynotbefurnishedtoanyotherpersonintheUnitedStatesEachmajorUSinstitutionalinvestorthatreceivesacopyofthisreportbyitsacceptancehereofrepresentsandagreesthatitshallnotdistributeorprovidethisreporttoanyotherpersonAnyUSrecipientofthisreportwishingtoeffectanytransactiontobuyorsellsecuritiesbasedontheinformationprovidedinthisreportshoulddosoonlythroughaUS-registeredbroker-dealerForrecipientsofthisdocumentinSingaporeThisreportisdistributedinSingaporebyCMBISingaporePteLimitedCMBISGCompanyRegnNo201731928DanExemptFinancialAdviserasdefinedintheFinancialAdvisersActCap110ofSingaporeandregulatedbytheMonetaryAuthorityofSingaporeCMBISGmaydistributereportsproducedbyitsrespectiveforeignentitiesaffiliatesorotherforeignresearchhousespursuanttoanarrangementunderRegulation32CoftheFinancialAdvisersRegulationsWherethereportisdistributedinSingaporetoapersonwhoisnotanAccreditedInvestorExpertInvestororanInstitutionalInvestorasdefinedintheSecuritiesandFuturesActCap289ofSingaporeCMBISGacceptslegalresponsibilityforthecontentsofthereporttosuchpersonsonlytotheextentrequiredbylawSingaporerecipientsshouldcontactCMBISGat6563504400formattersarisingfromorinconnectionwiththereportPLEASEREADTHEANALYSTCERTIFICATIONANDIMPORTANTDISCLOSURESONLASTPAGE5