Daiwa: Upgrades HUTCHMED (00013) rating to "Buy", target price raised to HK$28.5.

Daiwa released a research report stating that it has upgraded HUTCHMED (00013) from "Hold" to "Buy," with the target price raised by 42.5% from HKD 20 to HKD 28.5. After considering upfront payments and milestone revenues, the bank has increased its net profit forecast for the company from 2026 to 2028 by 25% to 37%. HUTCHMED has reached a licensing agreement with GSK for the KRAS-EGFR antibody conjugated cancer drug (ATTC) HMPL-A830, granting GSK the rights to develop and commercialize HMPL-A830 outside of China, with a total transaction value of up to USD 1.295 billion. Daiwa noted that the first overseas licensing deal for ATTC has been realized earlier than expected, and the scale of the transaction is ideal, with a multinational pharmaceutical company as the partner, marking a significant positive surprise for the company this year. The bank believes that the market had not previously reflected the valuation of the ATTC platform in the stock price, and recognition by a multinational pharmaceutical company has also increased market confidence in the potential of similar pioneering ATTC platforms.