CICC: Maintains DUALITYBIO-B (09606) Outperform rating, target price of HK$430

CICC released a research report stating that based on the DCF model, it maintains a rating of outperform for DUALITYBIO-B (09606) and a target price of HK$430 unchanged, with an upside potential of 63.4% compared to the current stock price. The company announced revenues of 1.85 billion yuan in 2025, exceeding the bank's expectations, mainly due to higher-than-expected R&D collaboration reimbursement income. CICC's main points are as follows: First-tier pipeline global development progressing rapidly According to the company's announcement, by 2025, the company has completed approximately 3,200 global clinical trial enrollments, with approximately 1,200 new enrollments in 2025, with around 50% from regions outside of China, demonstrating high execution efficiency. The company has submitted an application for the marketing of DB-1303 for HER2+ BC in China and is set to complete the global phase 3 registration clinical trial for HR+ HER2- BC in February 2026, with data expected to be read out in 2026. The company plans to submit a marketing application for HER2 expressing EC in the United States in 2026. DB-1311 is expected to read out mCRPC data with the best potential in the same class in February 2026, and will soon initiate a global phase 3 registration clinical trial for mCRPC. DB-1310 has shown preliminary efficacy data for EGFRm NSCLC and HR+ HER2- BC, and has been granted FDA fast-track designation, laying a foundation for further development. Exploration of combination therapy in 2026 and potential catalysts for the second-tier pipeline The company is collaborating with BioNTech on multiple combination trials for DB-1303, DB-1311, DB-1305, and pumitamig, with data expected to be released in 2026. DB-2304 has dosed the first patient in the phase 2a trial, showcasing the innovative concept of self-immune ADC. DB-1317, DB-1324, DB-1418, and DB-1419 are all advancing in global clinical trials, with the company's dual-loaded DUPAC platform presenting preclinical data at the 2025 AACR conference. Risks include: R&D failure, worsening competitive landscape, slower-than-expected progress in external collaborations, and slower-than-expected commercialization.