CICC has issued a research report stating that, after comprehensive consideration of BEIGENE's (06160) expense control, it maintains its 2026 revenue forecast while raising its profit forecast by 7.1% to $650 million. The profit forecast for 2027 remains unchanged. The firm maintains an Outperform rating. Based on a DCF model, it reiterates target prices of RMB 320 for A-shares, HK$250 for H-shares, and $420 for US-listed shares, implying potential upside of 29.6%, 37.4%, and 34.1%, respectively. Key points from CICC are as follows.

First-quarter 2026 results exceeded the firm's expectations. The company reported Q1 2026 revenue of $1.513 billion, up 35% year-on-year. Product revenue was $1.487 billion, a 34% increase. GAAP net profit was $227 million, an improvement of $226 million compared to the prior year. Sales revenue met expectations, while net profit surpassed forecasts, primarily due to effective cost control.

Zanubrutinib drove steady growth in product revenue. Global sales of Zanubrutinib reached $1.095 billion in Q1 2026, a 38% year-on-year increase. US sales were $761 million, up 35%, mainly benefiting from strong demand growth and favorable net pricing, maintaining its leading position in new chronic lymphocytic leukemia patients. European sales were $182 million, up 57%. Sales in China were $94 million, a 16% increase. Global sales of Tislelizumab were $206 million in Q1 2026, up 20% year-on-year. GAAP net profit reached $227 million, marking the first quarter where profit exceeded $200 million and surpassing the firm's expectations.

The company raised its full-year 2026 revenue and profit guidance. It increased its full-year revenue guidance from $6.2-$6.4 billion to $6.3-$6.5 billion. The full-year GAAP operating profit guidance was raised from $700-$800 million to $750-$850 million. Guidance for gross margin and operating expenses remained unchanged.

The company has multiple significant catalysts expected in 2026. It anticipates: 1) Potential US approval for Socazolimab for relapsed/refractory mantle cell lymphoma in Q2 2026, with a Phase III trial for relapsed/refractory multiple myeloma initiating in the second half of 2026; 2) Based on Phase II data, a potential submission for accelerated approval of the BTK CDAC for relapsed/refractory chronic lymphocytic leukemia in the second half of 2026; 3) Initiation of a Phase III trial for CDK4 inhibitor in first-line breast cancer in the first half of 2026; 4) Completion of first patient enrollment for the PD-1/VEGF-A/CTLA-4 trispecific antibody by mid-2026; 5) Initiation of a pivotal registration clinical trial for the GPC3/4-1BB bispecific antibody in the second half of 2026. Furthermore, abstracts for over 20 company programs have been accepted by ASCO, with the CDK4 inhibitor, B7H4 ADC, and GPC3/4-1BB bispecific antibody being particularly noteworthy.

Risk warnings include product sales falling short of expectations and clinical pipeline data readouts being weaker than anticipated.