Beigene delivered a strong set of 2Q25 results, with total revenue surging 42% YoY, beating expectations on the back of robust Brukinsa sales (+49% YoY). Profitability turned a corner, as the company reported its full quarter of GAAP net income (US$94m), driven by a favourable product mix and disciplined cost control. Management reaffirmed a catalyst-rich outlook with over 20 clinical and regulatory milestones expected in the next 18 months. We raise our TP to HK$196/US$314 and maintain BUY.
　　Key Factors for Rating
　　Strong revenue growth with optimised product mix; Brukinsa leads the way. BeiGene reported total revenue of US$1.32bn in 2Q25, representing +42% YoY and +18% QoQ growth, beating market consensus. Brukinsa (zanubrutinib) remained the primary growth engine with 2Q sales of US$950m (+49% YoY, +20% QoQ). In the U.S., Brukinsa continued to lead first-line CLL patient share gains, supported by new formulations and expanded physician education efforts. European sales surged over +85% YoY, driven by broader reimbursement coverage and successful launches. Tislelizumab delivered US$194m in 2Q sales (+22% YoY, +13% QoQ), with growth attributed to new indications (nasopharyngeal carcinoma, SCLC) and expanded market access in Europe.
　　Profitability improves significantly. GAAP net income in 2Q reached US$94m, compared to a net loss of US$120m in the same period last year, marking the company’s first full-quarter of sustainable profitability, significantly ahead of expectations. GAAP gross margin improved to 87.5% (+2.4ppts YoY), driven by a better product mix, improved manufacturing efficiency, and scale- up benefits. Operating expenses were well controlled; selling expenses increased slower than revenue, showcasing emerging operating leverage. R&D investment remained elevated but was increasingly focusing on late-stage and registration- enabling programmes.
　　20+ key catalysts within 18 months across hematology, oncology, and immunology. During the earnings call, management reaffirmed a pipeline-rich outlook with over 20 major catalysts expected in the next 18 months, covering hematological malignancies, solid tumours, and autoimmune diseases. Key upcoming milestones include: 1) Sonrotoclax (BCL-2 inhibitor): NDA under priority review in China; data readout of PhII trial and potential global accelerated approval submissions for R/R MCL in 2H25; + Brukinsa combination: mid-/late-stage trials ongoing in multiple B-cell malignancies, aiming to replicate Venclexta + Imbruvica success. 2) BGB-16673 (BTK CDAC): Granted EMA PRIME designation; initiate PhIII head-to-head trial compared to noncovalent BTK inhibitor pirtobrutinib for R/R CLL in 2H25; three pivotal trials ongoing in r/r MCL, CLL, and WM. 3) BGB-43395 (CDK4 inhibitor): Initiate Phase 3 trials for 2L and 1L HR+, Her2- metastatic breast cancer in 2026. 4) Zanidatamab (HER2 bispecific antibody): Approved in China for cholangiocarcinoma; Phase 3 1L Her2+ gastroesophageal adenocarcinoma PFS data due in 2H25. 5) Tarlatamab (DLL3/CD3 bispecific antibody): Received acceptance of BLA in China for 2L SCLC and 3L+ SCLC. 6) BGB-45035 (IRAK4 degrader): Anticipate first subject enrolled in PhII trials and proof-of-concept data for tissue IRAK4 degradation in 2H25. 7) BGB-58067 (PRMT5 inhibitor) and BG- 89894 (MAT2A inhibitor): Anticipate first subject enrolled in combination trial for lung cancer in 2H25.
　　Key Risks for Rating
　　1) Slower-than-expected sales ramp-up; 2) delay or failure in clinical or regulatory progress of key assets; 3) geopolitical tension; 4) FX volatility.
　　Valuation
　　We forecast 2025E/26E revenue to grow 35%/21% YoY, respectively and attributable net profit to be US$373m/US$776m, respectively.
　　Post results, we raise our target price to HK$196/US$314 for HK/ADR shares (from HK$183/US$293), based on an implied market cap of US$34bn, corresponding to 5.5x 2026E PS. Maintain BUY.