CICC International: Maintain Buy rating on INNOVENT BIO (01801) with a target price of HK$134.50.

recently released a research report stating that the target price for INNOVENT BIO (01801) has been adjusted to HK$134.50, reaffirming a "buy" rating. Due to the rapid growth in the company's core business of pharmaceutical product sales revenue, and with the progress of overseas cooperation projects in research and development, licensing fees are also expected to be further realized. Therefore, the company is worth paying attention to. The firm has raised its forecast for pharmaceutical product sales revenue, expecting a year-on-year increase of 34.6%, 24.5%, and 24.9% respectively for 2026-28E product sales revenue. Key points from Zhongtai International are as follows: Expect strong performance in pharmaceutical product sales in the first half of the year, with revenue expected to increase rapidly in the future. The firm recently reviewed the company's operations and predicts strong performance in the first half of the year in the company's core business of pharmaceutical product sales revenue. According to the firm's understanding, newly launched products such as XINBLE (for primary hypercholesterolemia) and XINMIN (for thyroid eye disease) have shown rapid growth, while the weight-loss drug MASIDUTIDE has been quickly rolled out. The firm has raised its forecast for pharmaceutical product sales revenue. Good news of cooperation with overseas business giants is frequently reported, milestone revenue will be gradually recognized in batches. As the company signed an agreement with Eli Lilly in February, the firm originally expected the upfront payment of $350 million in the agreement to be recognized before the end of 2026, but it is now expected to be recognized gradually after 2027. Regarding the licensing agreement with Takeda Pharmaceuticals, the company has stated that the cooperation is progressing smoothly, and the upfront payment of $1.2 billion will be recognized in installments in the coming years. In addition, the company signed a licensing agreement with Pfizer at the end of May and will receive an upfront payment of $650 million and up to $9.85 billion in research, regulatory, and commercial milestone payments. As the cooperation projects with Pfizer involve early-stage pipeline products and new projects, the timing of upfront payment recognition is uncertain and is not included in revenue forecasts. Overall, the frequent good news of overseas cooperation indicates that global giants are very optimistic about the company's research and development capabilities. Risk warning: (1) The magnitude of drug price reductions may exceed expectations; (2) Progress in clinical trials and approvals of new drugs may be slower than expected; (3) The promotion effect of new drugs after launch may be worse than expected.