China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

[Zai LAB (ZLAB US) Target Price Change]: Demonstrating Directionally Business Model to Profit

[Blue Lotus Innovative Drugs Sector Update]: Biotech-Biopharma Ecosystem Is Coming of Age in China

[Zai LAB (ZLAB US, SELL, TP US$20) TP Change]: Two Positive News Drove up 2024 Growth Target

Zai LAB (ZLAB.US/9688.HK)：TTF Is Not a Done Deal, Both China and Globally

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>ZaiLab reported C4Q22 top line 3% above our estimate. Operating profit was worse than our estimate and consensus while net income was better mainly due to government grant; </li>
<li>We maintain ZLAB’s business model is inherently flawed because each blockbuster drug it signed needs comprehensive sales support.</li>
<li>As a result, ZLAB’s pipeline needs to be heavily discounted; We maintain our SELL and cut TP from US$30 to US$25.</li>
</ul>


ZaiLab reported C4Q22 top line 3% above our estimate. Operating profit was worse than our estimate and consensus while net income was better mainly due to government grant; 
We maintain ZLAB’s business model is inherently flawed because each blockbuster drug it signed needs comprehensive sales support.
As a result, ZLAB’s pipeline needs to be heavily discounted; We maintain our SELL and cut TP from US$30 to US$25.


[Zai LAB (ZLAB US) Earnings Review]: Pretty Much the Same…Maintain SELL

Zai Lab Ltd

[Zai LAB (ZLAB US) Earnings Review]: Pretty Much the Same…Maintain SELL