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

[Akeso Inc. (9926 HK) Target Price Change]: Sell off in High-Beta Names Creates Buying Opportunity

[Blue Lotus Sector Update]: Solid Companies Starting to Rise from the Ashes

[Blue Lotus Healthcare Sector Update]: Bottom-Fishing at the Bottom of the Business Cycle

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Akeso reported C2H22 total sales, net revenue 41% and 67% above our estimates. Non-IFRS operating loss, however, was in-line with our estimate, thanks to higher OPEX; </li>
<li>Given Summit’s US$500mn upfront and up to US$5bn upfront payment for Ivonescimab (PD-1/VEGF) (AK112), we now forecast Akeso to achieve non-IFRS breakeven in C1H23 and all subsequent years;</li>
<li>We raise TP by 18% to HK$59 and maintain BUY.</li>
</ul>


Akeso reported C2H22 total sales, net revenue 41% and 67% above our estimates. Non-IFRS operating loss, however, was in-line with our estimate, thanks to higher OPEX; 
Given Summit’s US$500mn upfront and up to US$5bn upfront payment for Ivonescimab (PD-1/VEGF) (AK112), we now forecast Akeso to achieve non-IFRS breakeven in C1H23 and all subsequent years;
We raise TP by 18% to HK$59 and maintain BUY.


[Akeso Inc. (9926 HK) Target Price Change]: A Mini-BeiGene in the Making…Reiterate BUY

Akeso Biopharma Inc

[Akeso Inc. (9926 HK) Target Price Change]: A Mini-BeiGene in the Making…Reiterate BUY