CITIC Securities: Maintaining Fuhong Hanlin's (02696) “Buy” Rating Target Price of HK$122

The Zhitong Finance App learned that CITIC Securities released a research report saying that in the context of biosimilar drugs going overseas, the global value of Fuhong Hanlin (02696) is prominent, the company's second growth curve for innovative drugs is clear, and the early research pipeline for large single products is rich. Using the DCF model, the bank estimated that Fuhong Hanlin's reasonable equity value was HK$66.7 billion, corresponding to the 2026 target price of HK$122, maintaining a “buy” rating.

Biosimilars going overseas have a global market foundation. External demand resonates with internal supply, and China's advantages are expected to match the global window period. The core ability to go overseas is expected to lead to a revaluation of the global value of the biosimilar sector. CITIC Securities pointed out that the CMC platform determines the upper limit for the development of difficult varieties, and global access and commercialization capabilities drive the realization of back-end value; the cooperation between Fuhong Hanlin and Sandoz was upgraded to platform cooperation covering up to 10 biosimilar drugs; the clinical operation, global registration and commercial cooperation capabilities of biosimilar precipitation can be reused to innovative monoclonal antibodies and ADCs, becoming a springboard for the globalization of innovative drugs. Based on the size of the original drug research market, the bank established an M×Q×P×S sub-regional price model based on ① changes in volume and price (drug type affects replacement speed and price level), ② competitive pattern (listing order and overseas model determine product share), ③ differences in market regulation and policy between regions around the world, and then calculated separately according to China, the US, Europe and other market characteristics and then summed up year by year.

In terms of innovation pipelines, the company continues to release innovative products, and is also rich in research pipelines. Many major products are expected to be launched and bring sufficient cash flow. HLX43 (PD-L1 ADC) is expected to be intensively read out in WCLC/ESMO 2026 to verify the potential for broad-spectrum drug development; slulizumab has the world's first 4-year OS rate data for broad-stage small cell lung cancer. Astrum-006 was published in the Lancet main journal and included in the CSCO guidelines, and the US bridged ASTRIDE to complete enrollment.