External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Innovent Biologics Inc / Equity Bottom-Up

<ul><li>Mazdutide (9mg) continues to show its BIC potential with 48-week results. Innovent released the 48-week results of mazdutide (9mg) in Ph2 study in Chinese obesity patients.</li><li>After 48 weeks of treatment, the placebo-adjusted mean percent change in body weight from baseline was -18.6% (-17.8kg) in 59 of the 80 enrolled patients with treatment extended.</li><li>Recall in May 2023, mazdutide (9mg) met the primary endpoint of its Ph2 trial in Chinese obesity patients, showing 15.4% placebo-adjusted weight loss at week 24 (vs 12.0% of tirzepatide 15mg and 8.0% of semaglutide, CMBI report. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Mazdutide (9mg) continues to show its BIC potential with 48-week results. Innovent released the 48-week results of mazdutide (9mg) in Ph2 study in Chinese obesity patients.After 48 weeks of treatment, the placebo-adjusted mean percent change in body weight from baseline was -18.6% (-17.8kg) in 59 of the 80 enrolled patients with treatment extended.Recall in May 2023, mazdutide (9mg) met the primary endpoint of its Ph2 trial in Chinese obesity patients, showing 15.4% placebo-adjusted weight loss at week 24 (vs 12.0% of tirzepatide 15mg and 8.0% of semaglutide, CMBI report. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Strong sales growth momentum. In 1H23, Innovent recorded total revenue of RMB2.7bn, accounting for 51% of our previous FY estimate, which is better than our expectation.</li><li>Innovent realized RMB2.5bn product sales in 1H23, regaining strong sales with +20% YoY growth rate (vs the -2% YoY in 2H22).</li><li>The strong growth was driven by the strong performance of sintilimab and other products. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong sales growth momentum. In 1H23, Innovent recorded total revenue of RMB2.7bn, accounting for 51% of our previous FY estimate, which is better than our expectation.Innovent realized RMB2.5bn product sales in 1H23, regaining strong sales with +20% YoY growth rate (vs the -2% YoY in 2H22).The strong growth was driven by the strong performance of sintilimab and other products. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) – Strong Sales Growth with Improved Cost Efficiency

<ul><li>Ph2 study of IBI362 (9mg) for obesity met primary endpoint.</li><li>Innovent reported positive results of Ph2 study of higher-dose (9mg) IBI362 (GLP1R/GCGR) for the treatment of subjects with moderate to severe obesity (link).</li><li>The Ph2 study enrolled 80 Chinese subjects with a baseline mean weight of 96.9kg and mean BMI of 34.3kg/m2 , for which people metabolic surgery is the current main treatment option.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ph2 study of IBI362 (9mg) for obesity met primary endpoint.Innovent reported positive results of Ph2 study of higher-dose (9mg) IBI362 (GLP1R/GCGR) for the treatment of subjects with moderate to severe obesity (link).The Ph2 study enrolled 80 Chinese subjects with a baseline mean weight of 96.9kg and mean BMI of 34.3kg/m2 , for which people metabolic surgery is the current main treatment option.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) – Mazdutide (IBI362) to become the best GLP-1 drug for obesity in China

<ul><li>In FY22, Innovent recorded total revenue of RMB4.56bn, including RMB4.14bn in product sales (+3% YoY).</li><li>According to Eli Lilly, sintilimab sales in FY22 was US$293mn, -30% YoY, mainly impacted by NRDL related price cut, COVID-19 interruptions, and commercial team restructuring early 2022.</li><li>Under IFRS, the gross margin of product sales decreased by 9.9 ppt to 77.5% in FY22, due to the price cut of sintilimab, increased proportion of sales from lower-margin biosimilars, and lower margin booked by collaborated products.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In FY22, Innovent recorded total revenue of RMB4.56bn, including RMB4.14bn in product sales (+3% YoY).According to Eli Lilly, sintilimab sales in FY22 was US$293mn, -30% YoY, mainly impacted by NRDL related price cut, COVID-19 interruptions, and commercial team restructuring early 2022.Under IFRS, the gross margin of product sales decreased by 9.9 ppt to 77.5% in FY22, due to the price cut of sintilimab, increased proportion of sales from lower-margin biosimilars, and lower margin booked by collaborated products.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) – Revenue growth to recover in 2023

Thematic (Sector/Industry)

<ul><li>In our last report dated 17 October, we highlighted a list of 21 long ideas.</li><li>The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).</li><li>China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI China index by 5.4ppt, delivering 0.2% return (vs MSCI China 5.6%).China Meidong Auto and Innovent Biologics delivered over 20% of return, and 4 of our 21 long ideas outperformed the benchmark.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

China

Innovent Biologics, Inc. operates as a biopharmaceutical company. The Company develops, manufactures, and distributes monoclonal antibody drug candidates for the treatment of oncology, ophthalmology, autoimmune, cardiovascular, and other diseases. Innovent Biologics serves customers in China.

Innovent Biologics Inc (1801 HK)

Innovent Biologics (1801 HK)

Mazdutide (9mg) continues to show its BIC potential with 48-week results. Innovent released the 48-week results of mazdutide (9mg) in Ph2 study in...

CMB International

Innovent Biologics (1801 HK) – Strong Sales Growth with Improved Cost Efficiency

Strong sales growth momentum. In 1H23, Innovent recorded total revenue of RMB2.7bn, accounting for 51% of our previous FY estimate, which is better...

CMB International

Innovent Biologics (1801 HK) – Mazdutide (IBI362) to become the best GLP-1 drug for obesity in China

Innovent reported positive results of Ph2 study of higher-dose (9mg) IBI362 (GLP1R/GCGR) for the treatment of subjects with moderate to severe...

CMB International

Innovent Biologics (1801 HK) – Revenue growth to recover in 2023

According to Eli Lilly, sintilimab sales in FY22 was US$293mn, -30% YoY, mainly impacted by NRDL related price cut, COVID-19 interruptions, and...

CMB International

CMBI Research Focus List (November Edition) – Our best high conviction stock ideas

In our last report dated 17 October, we highlighted a list of 21 long ideas.The basket (equal weighted) of these 21 stocks underperformed MSCI...

CMB International