In today’s briefing:
- [Zai LAB (ZLAB US) Target Price Change]: Demonstrating Directionally Business Model to Profit
- PHC Holdings (6523 JP): In-Line FY23 Result; FY24 Guidance Shows Light at the End of the Tunnel
[Zai LAB (ZLAB US) Target Price Change]: Demonstrating Directionally Business Model to Profit
- Zai Lab (ZLAB) reported C1Q23 top line in-line with our estimate but operating/net loss much smaller than our estimate due to cut in R&D spending.
- ZLAB’s narrower losses in C4Q22 and C1Q23, achieved through R&D cut, do demonstrate the viability of the company achieving commercial breakeven by 2023 and full breakeven by 2025.
- We still think these viabilities have difficulties to achieve and even achieved, hurt the LT value of the company; We raised our TP from US$25 to US$29 but maintain SELL.
PHC Holdings (6523 JP): In-Line FY23 Result; FY24 Guidance Shows Light at the End of the Tunnel
- PHC Holdings (6523 JP) announced FY23 result, which is in-line with previously announced downward revised guidance. For FY23, revenue increased 5% to ¥356B, driven by diagnostics and life sciences business.
- Despite an impairment loss of ¥8.7B in Epredia, operating profit grew 145% to ¥20B. FY23 net loss narrowed to ¥3.2B from ¥8.5B in FY22.
- PHC has initiated FY24 guidance and guided for FY24 revenue of ¥355.5B (down 0.3% YoY). The company is expected to turn profitable in FY24, with net profit of ¥15.6B.
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