Nomura sees strong revenue surge for Sichuan Kelun-Biotech shares despite target cut

Published 20/08/2024, 09:00
Nomura sees strong revenue surge for Sichuan Kelun-Biotech shares despite target cut

On Tuesday, Nomura/Instinet adjusted its price target for Sichuan Kelun-Biotech Biopharmaceutical (6990:HK) shares, reducing it slightly to HK$195.51 from the previous HK$196.40. Despite the price target adjustment, the firm maintained a Buy rating on the stock.

The adjustment follows Sichuan Kelun-Biotech's reported financial results, which showed a significant increase in revenue and a shift from a loss to profitability in the first half of 2024.

The company's revenue surged 32.2% year-over-year to CNY1,383 million, surpassing both Bloomberg consensus estimates of CNY861 million and Nomura/Instinet's projections.

Much of this revenue came from collaboration income, including milestone payments from partnerships such as the USD90 million MSD received.

In addition to the revenue growth, Sichuan Kelun-Biotech also experienced a decrease in general and administrative (G&A) expenses, which dropped by 26.4% year-over-year to CNY66 million.

Meanwhile, the firm increased its investment in research and development (R&D) by 33% year-over-year, spending CNY652 million to advance its pipeline assets.

Selling expenses also saw an uptick, with CNY41 million spent compared to none in the first half of the previous year, as the company prepared its sales team for upcoming product launches.

The financial performance of the first half of 2024 marked a turnaround for Sichuan Kelun-Biotech. With a net profit to shareholders of CNY310 million compared to a loss of CNY31 million in the same period of the previous year, the company's cash and financial assets totaled approximately CNY2.9 billion by the end of the first half of 2024, indicating a solid financial position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.