Recommend【Conona】from Another Perspective: Entering Stable Profit Stage, PE Quickly Drops Below 20x

English summary

On July 15, interim earnings forecast was issued, with profit of over RMB 1.2 billion, mainly contributed by Ouro's second acquisition. It is expected that second half of pure main business will be close to break-even. Kangyueda + 512 benefits from essential drug catalog and anti-corruption cost reduction. By 2027, ~RMB 1 billion commercial profit fully covers R&D expenses. Expected 2028 revenue ~RMB 3 billion, commercial profit over RMB 1.5 billion. CLDN18.2 ADC, multiple high-certainty milestones in 2027-2029, first commercialization year in 2028 with subsequent contribution sharing. CM512 acquisition expectation, CDH17 ADC BD expectation, more early-stage assets pushed to POC. Not considering new BD, expected 2027/2028/2029 PE are 58.4/29.0/17.5x; if CM512 and other assets have new BD (high probability), 2027 can achieve ~15x PE, and profit sustainability is high growth! 【Guohai Healthcare】Cao Zeyun/Guo Lei