UBS: Initiates a "Buy" rating for InnoCare Pharma with a target price of HKD 320.

UBS published a research report, initiating coverage of ImmuneOnc Biotech-B with a "Buy" rating. Based on risk-adjusted discounted cash flow valuation, the target price is set at HKD 320, corresponding to 1.2 times the risk-adjusted peak sales ratio. The bank believes the company's current valuation is undervalued, as the current price corresponds to only 0.7 times the risk-adjusted peak sales ratio, significantly lower than the industry median of 1.6 times, making the valuation attractive. The bank predicts that DB-1311 will become the main driver of valuation, forecasting peak sales to reach RMB 38.3 billion, higher than the market consensus of RMB 28.6 billion. The market has not fully priced in the upcoming key data, including the combination therapy proof-of-concept data for DB-1311 combined with the PD-L1/VEGF bispecific antibody in lung cancer and non-lung cancer, as well as the global biologics license application submission for HER2 ADC. The bank expects total revenue to rise from RMB 1.8 billion in 2025 to RMB 22.8 billion in 2035, with EBITDA expected to turn positive by 2030.