CICC: Maintaining Junshi Biotech's (01877) “Outperform the Industry” rating, the target price of HK$21.3, and the innovative R&D pipeline is gradually entering the harvest period

The Zhitong Finance App learned that CICC released a research report stating that maintaining Junshi Biotech's (01877) “outperforming the industry” rating and target price of HK$21.3, based on DCF's valuation, there is 41.7% upside compared to the current stock price. The company achieved revenue of 817 million yuan in the third quarter of 2026, an increase of 28.2% over the previous year. The results were in line with the forecast. The bank believes that the company's domestic sales are steadily climbing, a global commercial network is gradually being formed, multiple registration studies are being carried out one after another, candidate molecules have entered the registered clinical research stage in batches, and innovative R&D platforms have entered the harvest period.

CICC's main views are as follows:

Results for the third quarter of 2026 are in line with expectations

The company released a report for the third quarter of 2026, achieving operating income of 817 million yuan, an increase of 28.2% over the previous year; net profit to mother was -171 million yuan, and net profit after deducting non-return to mother was -35.65 million yuan. Third-quarter results are in line with this forecast.

Domestic sales are steadily climbing, and a global commercial network is gradually being formed

In the third quarter of 2026, the company's core product, the anti-PD-1 monoclonal antibody treprilizumab injection, continued to be sold in the domestic market, achieving sales revenue of about 1,964 billion yuan, an increase of about 31% over the previous year. Some indications of treprilimab have been approved for marketing in Saudi Arabia, Thailand, Vietnam, Indonesia, India, etc., and the international market coverage continues to expand.

In terms of profit, after deducting the impact of share payments, the company's adjusted net profit for the first three quarters of 2026 was 31.53 million yuan. Through promoting commercialization of approved products and improving the quality and efficiency of R&D operations, the quality of the company's operations has been steadily improving.

A number of registered studies have been carried out one after another, and the pipeline has entered late-stage clinical trials in batches

The company announced that the phase III clinical trial of JS207 (anti-PD-1/VEGF double antibody) combined with JS007 (anti-CTLA-4 monoclonal antibody) for first-line treatment of advanced hepatocellular carcinoma has completed the first patient administration. Furthermore, JS107 (anti-CLDN18.2 ADC) for first-line and second-line treatment of CLDN18.2-positive gastric cancer, and JS203 (anti-CD3/CD20 double antibody) for recurrent or refractory diffuse large B-cell lymphoma (R/R DLBCL) have all entered phase III clinical trials.

Furthermore, JS207 and JS212 (EGFR/HER3 dual antibody ADC) have initiated a number of phase II clinical studies, driving the upgrade of the IO2.0+ADC2.0 treatment model. The bank believes that as candidate molecules enter the registration clinical research stage in batches, the company's pipeline is becoming more mature, and innovative R&D platforms are entering the harvest period.

Risk Alerts

Risk of R&D failure; risk of sales falling short of expectations; risk of international cooperation falling short of expectations.