The Zhitong Finance App learned that UBS released a research report stating that it initially gave Fu Hong Hanlin (02696) a “buy” rating, with a target price of HK$82.8. The bank believes that Fuhong Hanlin, as a comprehensive biopharmaceutical company, has undervalued the long-term growth potential of its global biosimilar business base and innovation pipeline in terms of valuation.
According to the report, Fuhong Hanlin has now launched 5 biosimilar drugs and obtained more approval overseas. The partner network covers the world, including cooperation with Sandoz (Sandoz) and Organon for global commercialization. Promising innovative franchises include PD-L1 ADC (HLX43) and novel HER2 (HLX22) antibodies, showing strong global commercialization potential. The bank pointed out that the company's main catalysts are additional overseas biosimilar launches (such as pertuzumab in Europe and the US 2027/28), late-stage asset clinical data updates, and concept verification data for the new platform.
The biosimilar platform and global partner network provide a scalable commercial foundation, and it is expected that 8 more models will be launched from 2027 to 2030. Although Chinese procurement may put one-time pressure on domestic sales from 2027 to 2028, new listings and overseas royalties can support revenue growth.
The bank is also optimistic about the company's two key clinical pipelines: HLX43 (PD-L1 ADC) and HLX22 (HER2 monoclonal antibody). UBS believes that Fuhong Hanlin's global expansion strategy, steady manufacturing capacity, and diversified R&D platform have given it long-term growth momentum in the biosimilar and innovative drug fields. The bank expects risk-adjusted revenue to grow at a compound annual rate of 14.2% from 2026 to 2035, mainly driven by innovative drugs and overseas revenue growth.