Highlights

• BeOne Medicines' 1H26 revenue rose 32.3% yoy to US$3.22b and adjusted net profit rose 110.7% yoy to US$820m, ahead of our and consensus expectations. 
   
• Management further raised 2026 revenue guidance by US$300m to US$6.6b-6.8b and GAAP operating income guidance to US$1.0b-1.1b, on BRUKINSA's momentum and improving operating leverage. Driven by smooth R&D progress, BeOne Medicines is well positioned for sustained long-term growth.
   
• Maintain BUY and raise target price to HK$265.00.
   

Analysis

• 2Q26 results beat. BeOne Medicines' (BeOne) 2Q26 revenue reached US$1,705m, up 29.6% yoy, while adjusted net profit rose 75.8% to US$444m and reported net profit rose 151.3% yoy to US$237m. 1H26 revenue of US$3,219m (up 32.3% yoy) and 1H26 adjusted net profit of US$820m (up 110.7% yoy) represent 49.7% and 59.7% of our full-year forecasts respectively, running ahead of both our and consensus estimates. 
   

• Total revenue grew 29.6% yoy and 12.7% qoq to US$1,705m in 2Q26. 2Q26 product revenue rose 29.0% yoy to US$1,680m, driven by BRUKINSA’s robust global sales of 31.4% yoy to US$1,248m (about 73.2% of total); US BRUKINSA sales grew 31% yoy to US$893m in 2Q26. TEVIMBRA sales rose 18.1% yoy to US$229m and the products in-licensed from Amgen grew 25% yoy to US$157m in 2Q26. By region, US revenue rose 31.6% yoy to US$914m and made up 53.6% of total revenue in 2Q26, Europe rose 37.0% yoy to US$209m, the rest of the world more than doubled to US$76m, and China grew 16.9% yoy to US$506m.
   
• Margin expansion continued. Gross margin improved to 89.4% in 1H26, up 2.9ppt yoy, on a richer BRUKINSA sales mix and productivity gains in both BRUKINSA and TEVIMBRA. The R&D/revenue ratio fell 5.3ppt yoy to 35.7% and the SG&A/revenue ratio fell 5.5ppt yoy to 35.8% in 1H26. Operating margin therefore widened 13.8ppt yoy to 17.9% and adjusted net margin widened 9.5ppt yoy to 25.5% in 1H26.
   
• Management raised 2026 revenue guidance again, by US$300m to US$6.6b-6.8b, backed by TBRUKINSA’s leadership position in the US and its continued growth momentum in the rest of the world. The new range implies growth of 23-27% yoy, while gross margin guidance was kept at the high-80% range. Management also lifted guidance for GAAP operating income to US$1.0b-1.1b (from US$750m-850m) and for non-GAAP operating income to US$1.7b-1.8b (from US$1.45b-1.55b), on combined R&D and SG&A expenses of US$4.8b-5.0b. The upgrade underlines BeOne's strong global commercial execution and potentials in further improving operating efficiency. 
   
• Pipeline progress supports long-term value. BEQALZI (Sonrotoclax) received US FDA accelerated approval for 3L relapsed/refractory mantle cell lymphoma (r/r MCL), and BRUKINSA delivered positive top-line results in 1L MCL, which management will take into regulatory submissions in the US, Europe, China and Japan in 2H26. TEVIMBRA won Japanese approval in 1L gastric cancer. Tacabrutideg (BGB-16673, a bruton tyrosine kinase degrader) completed enrolment for its China Phase 3 study in post-BTKi r/r chronic lymphocytic leukaemia. BeOne also announced a US$300m expansion of its Princeton West campus in New Jersey to add small-molecule manufacturing