Bank of America Securities: Authorized trading activity is expected to drive a reevaluation of China Meheco Group's valuation, raising the target price of INNOVENT BIO (01801) to HK$119.2.

Bank of America Securities released a research report stating that China Meheco Group's authorized trading is active, and the continuous advancement of research and development innovation by the company will benefit the reevaluation of the sector's valuation. CSPC PHARMA (01093) recently announced a cooperation agreement with Astrazeneca PLC Sponsored ADR (AZN.US) to jointly develop preclinical candidate drugs (PCC) for two renal disease targets using its siRNA drug discovery and extra-hepatic targeted delivery platform. They will receive an upfront payment of $30 million, as well as up to $540 million and $1.2 billion in development and sales milestone payments, plus potential royalties in the double-digit percentage. The bank includes the upfront payment in their forecast, raising revenue and net profit forecasts for 2027 by 0.8% and 2%, respectively, and adjusting long-term sales forecasts. The target price is raised from HKD 6.8 to HKD 7.6. However, due to continued sales pressure on core listed drugs, the bank maintains its "underperforming the market" rating. The bank noted that INNOVENT BIO (01801) has announced a commercialization agreement with Eli Lilly (LLY.US) on the CDK4/6 inhibitor Verzenios in mainland China. Correspondingly, revenue forecasts for 2026 to 2028 are raised by 3.3%, 5.3%, and 4.7%, and the target price is raised from HKD 116.8 to HKD 119.2. The rating is maintained as "buy," as the company's commercial product portfolio is rich and its internal research and development capabilities are robust. Additionally, GUSHENGTANG (02273) also announced the acquisition of equity in Shahe Hospital and Beijing Hongyang Hospital. Bank of America Securities maintains its "buy" rating and target price of HKD 32.6.