Guotai Junan Haitong: Initiate coverage of KEYMED BIO-B (02162) with a buy rating and a target price of HK$138.91.

Guotai Haitong released a research report stating that using the DCF absolute valuation method for valuation, the target price for KEYMED BIO-B (02162) is 120.85 Hong Kong dollars, calculated at 1 Hong Kong dollar equivalent to 0.87 RMB, equivalent to 138.91 Hong Kong dollars. The company's first coverage is given a buy rating. The bank forecasts the company's revenue for the years 2026-2028 to be 30.90 billion, 21.56 billion, and 30.85 billion, respectively. The significant increase in revenue in 2026 is mainly due to Connoy receiving a $257 million down payment as a shareholder of Ouro. The forecasted attributable net profits for the years 2026-2028 are 11.05 billion, -0.63 billion, and 3.64 billion. Guotai Haitong's main views are as follows: CM310 captures differentiated ENT demand, rapidly expands after entering medical insurance, and CM512 connects to the heavyweight drug of the next generation self-immune CM310 is the first domestic and the second global IL-4R monoclonal antibody, approved for three indications in adults with moderate to severe atopic dermatitis (AD), chronic sinusitis with nasal polyps (CRSwNP), and seasonal allergic rhinitis (SAR) and included in medical insurance; CM512 is the first global long-acting TSLP x IL-13 bispecific antibody, achieving all endpoints in Phase I for moderate to severe atopic dermatitis (AD) in adults. Multiple Newco external cooperation agreements have been reached, and CM336 has run through the BD model acquired by Gilead Connoy continuously verifies pipeline value through multiple external licensing transactions (BD), forming a long-term return structure of "down payment + milestone/sales royalties/equity equity". CM336 achieved a complete closed-loop from asset licensing, overseas incubation to the acquisition of the NewCo (special incubation company) by leading overseas pharmaceutical companies, which is a rare case of a NewCo's outbound in the domestic self-immune innovative drug field to complete stage value verification; Ouro was ultimately acquired by Gilead for $2.175 billion as a whole, driving the underlying assets to be revalued and achieving equity exit. The bank believes that BD has become an important path for the company to accelerate the realization of asset value and mitigate risks in subsequent development. Multiple technological platforms demonstrate vision for project approval, strong early-stage pipeline development strength Connoy relies on a systematic, diversified innovative technology platform, forming multidimensional research and development capabilities around antibodies, ADCs, TCE bispecific antibodies, oligonucleotide delivery, blood-brain barrier delivery, and small molecules, supporting the company's continuous development of new drug research and innovative molecular design, with over 50 preclinical development projects currently. The bank believes that the next generation of A monoclonal antibodies and other pipelines are worth paying attention to. Risk warning Risks of clinical core pipeline clinical trial progress falling short of expectations, risks of products not progressing to market as expected, risks of market promotion and sales falling short of expectations, risks of competition in the innovative drug market with the same target, risks of global pharmaceutical policy changes, and risks of external cooperation progress falling short of expectations.