CICC: Maintains outperform rating on REMEGEN (09995), raises target price to 133.7 Hong Kong dollars.

CICC released a research report stating that considering the pace of recognition of authorized partnership income by REMEGEN (09995), the net profit for 2026 was raised from 0.34 billion yuan to 4.235 billion yuan, and an introduction of a net profit forecast for 2027 of 748 million yuan. Considering the acceleration of internationalization of RC148 research and development and performance improvement, based on DCF valuation, the bank maintained an outperform industry rating and raised the target price by 26.8% to 133.7 Hong Kong dollars, representing a 21.1% upside potential from the current stock price. Key points from CICC: Performance exceeded the bank's expectations in 2025 The company announced its 2025 performance: revenue of 3.242 billion yuan, a year-on-year increase of 89.55%; net profit attributable to shareholders of 710 million yuan, turning losses into profits. Due to the rapid increase in product sales and continuous progress in external authorized partnerships, the performance exceeded the bank's expectations. Continuous growth in sales revenue of core products, expansion of indications expected to boost commercialization acceleration According to the company's announcement, domestic commercial revenue in 2025 was 2.271 billion yuan, a year-on-year increase of 34%; the gross profit margin of commercial products was 84.3%, an increase of 3.7 percentage points year-on-year. The core product Telitacisup for severe myasthenia gravis was approved for market launch, and the application for the market approval of IgAN, Sjogren's syndrome, and vedolizumab monoclonal antibody combination therapy for first-line urothelial carcinoma has been accepted by NMPA. The bank believes that with the continuous approval of new indications, the company's sales revenue from commercial products is expected to continue growing. Continued international cooperation, rapid advancement of RC148 global research and development According to the announcement, the company has reached an agreement with AbbVie on RC148, and the joint phase III clinical trials of second-line non-small cell lung cancer and second-line treatment of solid tumors have been FDA approved. According to a press release from AbbVie, RC148 is expected to explore combination therapy with multiple ADCs including Temab-A. Based on AbbVie's clinical resources and pipeline accumulation, the bank believes that the global research and development of RC148 is expected to accelerate, increasing the value ceiling. Continued iteration of innovative technology platforms, a new generation of innovative molecules has formed a lineup In the field of immunotherapy, the company has laid out the next generation of bispecific/trispecific antibodies and TCE molecules. The bank believes that the new technology pathways for candidate drugs are expected to consolidate the company's competitiveness in the field of immunotherapy. In the field of oncology, based on the company's rich experience in the ADC field, breakthroughs in new generations of toxins and conjugation technologies are constantly being made, and three TCEs with specificities are being deployed to expand treatment boundaries. According to the company's announcement, RC278 has entered dose escalation and target dose expansion research, RC288 has been granted IND, and the pioneering PR-ADC payload recovery platform will release data at AACR in 2026. The bank believes that the company's new generation of molecules has formed a lineup, laying a solid foundation for long-term development. Risk warnings: risks of R&D failures, intensified competition, and project cooperation falling short of expectations.