Bank of America Securities: Raises the target price for SKB BIO-B (06990) to HKD 644.4, expects to turn profitable for the year.

Bank of America Securities has released a research report stating that SKB BIO-B (06990) experienced a 2.9% year-on-year increase in revenue for the first half of the year, with pharmaceutical sales revenue growing more than double compared to the same period last year. The mid-year net profit reached 388 million RMB, achieving a turnaround, primarily driven by settlement income and other revenues. Operating cash flow turned positive to 339 million RMB, with cash and financial assets amounting to approximately 4.78 billion RMB, providing a solid financial foundation for pipeline development and commercialization. The target price has been raised from HKD 581 to HKD 644.4, maintaining a Buy rating. The bank stated that, based on the good progress of the core product sac-TMT and other ADC pipeline developments, it has increased the success rate forecasts for related treatments and indications. Revenue forecasts for 2027 and 2028 have been raised by 0.2% and 0.5%, respectively, and after incorporating settlement income into the predictions, the net profit for 2026 is currently expected to reach 184 million RMB.