Innovent’s Full-Year Results in Line With Expectations; FVE to HKD 47.5, Shares Modestly Cheap

Narrow moat Innovent’s results were in line with our expectations. Revenue in the second half was CNY 2.3 billion, or a 0.5% year-on-year decline and 3.4% sequential growth, which was expected given the effect of the COVID-19 lockdowns and outbreak and the Tyvyt price cut that took effect in March last year. Full-year revenue was CNY 4.6 billion, or 6.7% growth. Tyvyt revenue for the second half and full year was USD 134.4 million and USD 293.4 million, respectively, according to Eli Lilly’s disclosures, which were 34% and 30% year-on-year declines.