CICC: Maintain SKB BIO-B (06990) outperform rating, target price of HKD 550.

Zhongjin released a research report stating that considering the licensing upfront income of SKB BIO-B(06990), the basic mother net profit forecast for 2026 remains unchanged. The bank maintains an outperform industry rating, with a target price of HK$550 based on the DCF model, representing a 33.4% upside potential from the current stock price. The main points of Zhongjin are as follows: Company Update Recently, the company announced: 1) The domestic Phase III clinical trial OptiTROP-Lung05 of TROP2 ADC Lusutuzumab Govitecan (SKB264) combined with Pembrolizumab (Keytruda) for first-line treatment of PD-L1 positive non-small cell lung cancer (NSCLC) has reached the primary endpoint. 2) The company has entered into a collaboration with Crescent Biopharma, granting Crescent overseas rights to the ITGB6 ADC SKB105 for an upfront payment of $80 million and milestone payments of up to $1.25 billion, and also introducing Crescent's PD-1 x VEGF bispecific antibody CR-001's Chinese rights for an upfront payment of $20 million and milestone payments of up to $30 million. SKB264 combined with Keytruda become the first "ADC+IO" combination to reach Phase III clinical endpoint in 1L NSCLC According to the company's announcement, in OptiTROP-Lung05, compared to Keytruda alone in the treatment of 1L PD-L1 positive NSCLC patients, the combination of SKB264 and Keytruda showed a significant and clinically meaningful improvement in progression-free survival (PFS) in the pre-specified interim analysis and a trend towards benefit in overall survival (OS). The company plans to submit a new indication application based on these results in China. 1L NSCLC is a key indication for SKB264, and the bank recommends focusing on the potential registration progress in 2026 and detailed data readout. Bilateral licensing agreement with Crescent introduces a new ADC targeting and enriches the pipeline with bispecific antibodies According to the company's announcement, the two drugs involved in this collaboration are expected to begin Phase I/II monotherapy clinical trials in 1Q26, while both parties have the rights to develop combination therapy regimens using their pipelines. The bank believes that the agreement on the clinical-stage emerging target ADC asset SKB105, bringing in external licensing, will bring in good cash flow for the company and also accelerate its clinical development path. Furthermore, by introducing the PD-1 x VEGF bispecific antibody, it will help synergize with the company's leading ADC assets and explore the potential of next-generation IO+ADC combination therapy.