UBS: Reinstated Yingen Bio-B (09606) for the first time and gave a “buy” rating target price of HK$320

The Zhitong Finance App learned that UBS released a research report saying that for the first time, Yingen Bio-B (09606) was applied to give it a “buy” rating. Based on a risk-adjusted cash flow discount (DCF) valuation, the target price was HK$320, which corresponds to a 1.2 times risk-adjusted peak sales ratio. The bank believes that the company's current valuation is undervalued. The current price only corresponds to a peak sales ratio of 0.7 times after risk adjustment, far lower than 1.6 times the average of its peers, and the valuation is attractive.

Yingen Biotech is a clinical-stage biotechnology company focusing on the development of novel antibody drug conjugates (ADCs). UBS is optimistic about its four proprietary ADC platforms and has established an extensive pipeline of 10 clinical-stage drug candidates, covering the fields of monospecific (DITAC platform), bispecific (DIBAC), dual payload (DUPAC), and non-oncology (DIMAC). Several drug candidates rank in the top three in the world in terms of development progress, and have established partnerships with global pharmaceutical companies such as BioNTech, GSK, BeiGene (06160), and Avenzo, with a total transaction value of over US$6 billion.

The bank expects DB-1311 (B7-H3 ADC) to be the main valuation driver, predicting that its peak sales will reach RMB 38.3 billion, which is higher than the market consensus of RMB 28.6 billion. UBS believes that the market has yet to fully price upcoming key data, including DB-1311 combined PD-L1/VEGF bispecific antibody concept verification data for lung cancer (2026 WCLC) and non-lung cancer (ESMO 2026), and the submission of a global biological product licensing application (BLA) for HER2 ADC (DB-1303). The bank predicts that total revenue (unadjusted) in 2025 will rise from 1.8 billion yuan to 22.8 billion yuan in 2035, and EBITDA is expected to be corrected in 2030.