CICC: Maintains "Outperform" rating on HANSOH PHARMA (03692), target price HK$52; ADC platform value continues to materialize.

CICC released a research report maintaining an "Outperform" rating on HANSOH PHARMA (03692) with a target price of HK$52.00, corresponding to 2026 and 2027 P/E ratios of 43.9x and 42.3x respectively, implying a potential upside of 51.25%. On October 19, HANSOH PHARMA announced a strategic collaboration and licensing agreement with Roche for multiple ADC projects, covering 2 preclinical ADCs and multiple new projects developed based on Hansoh's proprietary technology platform. Under the agreement, the company will receive a US$400 million upfront payment, a US$110 million one-year anniversary payment, and potential milestone payments exceeding US$15 billion plus tiered royalties on future product sales. The bank believes this large BD deal further validates the global competitiveness of Hansoh's ADC platform. CICC's main views are as follows: Another large overseas licensing deal with Roche, ADC platform value continues to materialize This collaboration covers 2 Hansoh preclinical ADCs and multiple ADC projects based on targets proposed by Roche and developed on Hansoh's proprietary technology platform, with a total potential deal value exceeding US$15.5 billion. In terms of rights, Hansoh is responsible for global early-stage development through Phase Ia and prior, Roche is responsible for subsequent development outside Greater China, and Hansoh retains full rights in Greater China; meanwhile, the company may choose up to 2 projects to participate in overseas development and share additional US commercialization revenue. Following the 2025 licensing of CDH17 ADC HS-20110 to Roche, this collaboration expands from a single asset to a multi-project platform partnership. CICC believes this large BD deal further validates the global competitiveness of Hansoh's ADC platform; the upfront payment is expected to enhance the company's profit and cash flow, while long-term milestones and sales royalties provide sustained room for overseas value realization. Company to present four studies at 2026 ESMO Congress The Phase III ARTEMIS-011 study of B7-H3 ADC HS-20093 in relapsed or refractory osteosarcoma has been selected for a Presidential Symposium; the Phase III study of darmilutinib combined with almonertinib in MET-amplified lung cancer after progression on EGFR-TKI therapy, and the Phase I study of EGFR/cMET bispecific ADC HS-20122 in advanced solid tumors have been selected for preferred oral presentations; the Phase I study of SEZ6 ADC HS-20108 in advanced solid tumors will be presented as a poster. The bank recommends attention to related data readouts. Earnings forecast and valuation CICC maintains its 2026 and 2027 earnings forecasts unchanged. The current share price corresponds to 2026 and 2027 P/E ratios of 29.0x and 28.0x respectively. The bank maintains its "Outperform" rating and target price of HK$52.00, corresponding to 2026 and 2027 P/E ratios of 43.9x and 42.3x respectively, implying a potential upside of 51.25%. Risk factors Product commercialization below expectations; intensifying competitive landscape; clinical data below expectations.