The Zhitong Finance App learned that CICC released a research report stating that it will maintain the Conoa-B (02162) “outperform the industry” rating and include the valuation of new products such as CDH17 in the market value. Based on the DCF valuation, the target price was raised by 12.24% to HK$110, corresponding to 28% upward space. Considering Kang Yueda's good sales performance, the bank raised its 2026 and 2027 revenue forecast by 8.8%/11.3% to 1,270 million/2.201 billion yuan. At the same time, considering that the company may continue to increase R&D investment, the profit forecast for the same period remained unchanged. In the first three quarters of 2026, Kangyueda (CM310, IL-4Rα monoclonal antibody) achieved sales revenue of about 660 million yuan, an increase of 227% over the previous year; of these, revenue for the third quarter was about 267 million yuan, mainly benefiting from the release of terminal demand and the rapid increase in hospital coverage after the implementation of medical insurance, and sales performance exceeded this forecast.
CICC's main views are as follows:
Kangyueda continues to expand within health insurance, and commercial coverage is rapidly increasing
In the third quarter of 2026, Kang Yueda achieved sales revenue of about 267 million yuan. The cumulative revenue for the first three quarters was about 660 million yuan, an increase of 227% over the previous year. 2026 is Kangyueda's first complete sales year after being included in medical insurance, and the basic drug catalogue will be officially implemented in September. By the end of the third quarter of 2026, the company's commercialization team had more than 550 people, covering more than 2,200 hospitals, including more than 1,300 hospitals that can use in-hospital drugs and nearly 700 retail pharmacies; new indications for moderate to severe AD for young people have recently been approved. The bank believes that access to medical insurance and basic drugs is expected to continue to drive intra-hospital penetration and expand indications to provide support for Kangyueda's subsequent sales growth.
CMG901 selected for ESMO Chairman's Symposium to focus on CDH17 ADC clinical data
The global phase III study of CMG901 (CLDN18.2 ADC) in the treatment of second-line (2L+) CLDN18.2 positive gastric cancer was selected for the 2026 ESMO Breakthrough Summary (LBA7) and Chairman's Symposium. A total of 594 patients were enrolled in the study. The previous top-line results showed that the overall survival (OS) of third-tier (3L+) people reached the main end point, and the progression-free survival (PFS) of second-line and above (2L+) groups was not statistically significant. The study recommended focusing on OS benefits and safety.
The phase I/II clinical data of the CDH17 ADC CM518D1 developed by the company was also selected for ESMO. As of May 8, 2026, 84 patients were included, including 71 cases of colorectal cancer. The bank believes that CDH17 ADC is expected to further enrich the company's tumor pipeline, and it is recommended to focus on its clinical efficacy, safety and potential BD value.
Profit forecasting and valuation
Considering Kang Yueda's good sales performance, CICC raised its 2026 and 2027 revenue forecast by 8.8%/11.3% to 1,270 million/2.201 billion yuan. At the same time, considering that the company may continue to increase R&D investment, the profit forecast for 2026 and 2027 remained unchanged. The bank maintained a “outperforming industry” rating and included the valuation of new products such as CDH17 in the market value. Based on the DCF valuation, the target price was raised by 12.24% to HK$110, corresponding to 28% upward space.
Risk Alerts
Kang Yueda's sales fell short of expectations; the IL-4Rα competitive landscape deteriorated beyond expectations.