BAO PHARMA-B(02659) China Post Securities: Initiates coverage on BAO PHARMA-B (02659) with a "hold" rating, platform value gradually realized.

China Post Securities released a research report stating that BAO PHARMA-B (02659) has a differentiated layout, gradually reaping benefits. Its unique subcutaneous drug delivery platform and synthetic biology platform have built solid technical barriers, and continue to release value through diversified cooperation models. It is expected that the company's operating income will reach 82/235/445 million yuan from 2026 to 2028. It is the first coverage, and a "hold" rating is given. Main points of view of China Post Securities: Financial Overview: In 2025, the company achieved a total revenue of 49.16 million yuan, a significant increase from 6.16 million yuan in 2024, mainly due to 40 million yuan in licensing revenue and a net income of 3.64 million yuan from the first commercial product SJ02. Research and development expenditure was 248 million yuan, basically stable compared to the previous year. The first year of commercialization has begun, and core products are entering a period of intensive harvest. The company's first product, long-acting follicle-stimulating hormone SJ02, was approved for market in August 2025, and the first batch of orders was completed in November, marking the company's official entry into the commercialization stage. The core product, recombinant human hyaluronidase KJ017, was approved on March 31, 2026, becoming the first domestically approved product, verifying the company's own research and production capabilities. Another core product, IgG degrading enzyme KJ103 for desensitization before kidney transplantation, completed phase III clinical trials in March 2026 and plans to submit a New Drug Application (NDA) in the first half of 2026. Another indication, GBM, will conduct phase III trials in the first half of 2026, plan to submit orphan drug designation to the FDA in the second half of 2026, and submit a pre-IND application for phase III. The subsequent pipeline is clear, and the potential of the synthetic biology platform is beginning to show: multiple clinical-stage products such as recombinant human plasminogen KJ101, subcutaneous antibiotic BJ007/BJ009 are progressing smoothly. Continuous deepening of strategic cooperation, platform value gradually realized. The company's high-capacity subcutaneous drug delivery platform value continues to be validated. It has established strategic partnerships with WUXI BIO, Shanghai RAAS Blood Products, Qilu Biotechnology and other companies to jointly develop subcutaneous formulations, which are expected to bring continuous milestones and sales revenue, building the company's second growth curve. Risk factors: The risk of delays in the progress of innovative drugs; intensified market competition risk; global epidemic changes exceeding expectations risk; policy exceeding expectations risk.