Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 70.00, indicating a potential upside of 59.1% from the current price of HKD 44.00 [1][2]. Core Insights - The company has achieved positive results in its Phase III clinical trial (AK112-303/HARMONi2) against Keytruda for PD-L1 positive NSCLC, demonstrating a significant improvement in progression-free survival (PFS) [1][2]. - AK112 is the first drug to show survival benefit improvement in a head-to-head Phase III trial against a PD-1 monotherapy, with expected hazard ratio (HR) below 0.7 [1][2]. - The company plans to submit a supplemental application for new indications to the National Medical Products Administration soon [1]. Summary by Sections Clinical Trial Results - The HARMONi-A study reported a median PFS of 7.1 months for the treatment group (AK112 + chemotherapy) compared to 4.8 months for the control group, with an HR of 0.46 (P<0.001) [5]. - Subgroup analyses showed significant PFS benefits across various patient populations, including those with brain metastases and specific mutations [7][9]. Financial Projections - Revenue is projected to grow from RMB 838 million in 2022 to RMB 4,526 million in 2023, with a subsequent decline to RMB 3,097 million in 2024, followed by recovery in the following years [12]. - The net profit is expected to turn positive in 2023, reaching RMB 2,220 million, before experiencing fluctuations in the following years [12]. Market Position - The company is positioned as a leading player in the biopharmaceutical sector, with a market capitalization of HKD 37,983 million and a significant trading volume [3][11]. - The report highlights the company's strong potential in the global market, particularly in the oncology segment, following the successful trial results [2][5].

Summary of Conference Call Company and Industry - The conference call pertains to ZTE Corporation, specifically focusing on its pharmaceutical division and the clinical trial results of its drug AK12 [1] Core Points and Arguments - The company announced that AK12, a first-line head-to-head competitor to K drug, has achieved excellent results in its Phase III clinical trials [1] - Key metrics highlighted include improvements in Progression-Free Survival (PFS) and Health-Related Quality of Life (HFV) [1] Other Important but Possibly Overlooked Content - The success of AK12 in clinical trials may position the company favorably in the competitive pharmaceutical market, potentially leading to increased market share and revenue growth [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 63, indicating a potential upside of 43% from the current price of HKD 44 [4][5]. Core Insights - The interim analysis of the AK112 head-to-head trial against Keytruda (K drug) for the treatment of 1L PD-L1+ NSCLC has shown positive results, aligning with expectations and driving a significant rebound in the company's stock price [2][3]. - The specific interim analysis data from the HARMONi-2 trial is expected to be presented at the WCLC 2024 conference in September, which could further influence market sentiment [3]. - The success of the HARMONi-2 trial is anticipated to accelerate the company's ongoing trials and open up new potential combination therapies, although the commercial potential in the 1L NSCLC market remains to be clarified by the results of the HARMONi-3 trial [3]. Financial Projections - Revenue is projected to grow significantly from RMB 838 million in 2022 to RMB 6,200 million by 2026, with a notable increase of 440.3% in 2023 [7][8]. - The company is expected to return to profitability with a net profit of RMB 1,501 million by 2026, following a loss of RMB 1,168 million in 2022 [7][8]. - The price-to-sales (PS) ratio is forecasted to decrease from 35.1 in 2022 to 5.0 by 2026, indicating improved valuation metrics as the company scales [7][8].

证券研究报告 | 2024年06月02日 康方生物（09926.HK） 优于大市 AK112 头对头 K 药达到优效，有望成为免疫治疗新基石  公司研究·海外公司快评  医药生物·生物制品  投资评级：优于大市（维持） 证券分析师： 张佳博 021-60375487 zhangjiabo@guosen.com.cn 执证编码：S0980523050001 证券分析师： 陈益凌 021-60933167 chenyiling@guosen.com.cn 执证编码：S0980519010002 证券分析师： 陈曦炳 0755-81982939 chenxibing@guosen.com.cn 执证编码：S0980521120001 事项： 康方生物的核心产品PD-1xVEGF双抗依沃西（AK112）在近期取得了一系列重要的研发和监管进展： 1）AK112获得中国药监局批准上市，适应症为联合化疗治疗EGFR-TKI进展的EGFRm nsqNSCLC； 2）AK112在ASCO年会上披露联合化疗治疗EGFR-TKI进展的EGFRm nsqNSCLC的3期临床数据； 3）AK112头对头帕博利珠单抗一线治疗PD- ...

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Insights - The company is entering a harvest period as its R&D pipeline accelerates, with revenue forecasts for 2024-2026 raised to 28.96 billion, 45.25 billion, and 63.86 billion RMB, respectively [3]. - The drug Ivoris has shown positive results in head-to-head trials against Keytruda (K drug) for PD-L1 positive patients, marking a significant advancement in treatment options [3]. - Ivoris has recently received approval from NMPA for its first indication, and multiple core indications are progressing [3]. - The company is actively developing its pipeline with several monoclonal antibodies and ADCs in various stages of clinical trials [3]. Summary by Sections Investment Rating - The company is rated "Accumulate" based on its strong market performance expectations [1][3]. Revenue Forecast - Revenue projections for 2024, 2025, and 2026 have been adjusted to 28.96 billion, 45.25 billion, and 63.86 billion RMB, respectively, indicating a positive growth outlook [3]. Clinical Development - Ivoris has outperformed K drug in a Phase III trial, achieving significant improvements in overall response rate (ORR) and progression-free survival (PFS) [3]. - The company has initiated several Phase III clinical trials for Ivoris in various lung cancer indications, with expected completion of enrollment in the second half of 2024 [3]. Pipeline and Long-term Growth - The company is advancing multiple monoclonal antibodies and ADCs, with several candidates in NDA and Phase III stages, ensuring a robust pipeline for future growth [3].

Summary of the Conference Call for 康方生物 (Kangfang Biologics) Company Overview - 康方生物 is a biopharmaceutical company focused on developing innovative therapies, particularly in oncology. The company recently achieved significant milestones in its clinical trials. Key Points and Arguments Clinical Trial Success - 康方生物 announced positive results from the Phase III clinical trial of its drug 伊沃西单抗 (H112), which is a head-to-head comparison with 帕布利珠单抗 (Pembrolizumab) for the treatment of PDL1 positive non-small cell lung cancer (NSCLC) [7][10]. - The trial enrolled 398 patients, and the independent data monitoring committee (IDMC) confirmed that the results were significantly better than expected, particularly in terms of progression-free survival (PFS) [8][10][11]. - The risk ratio for the treatment was reported to be significantly favorable, indicating a strong clinical benefit [10][11]. Market Response and Future Plans - Following the announcement of the positive trial results, 康方生物's stock experienced a notable increase, reflecting investor confidence in the drug's potential [14]. - The company plans to submit for new drug approval (NDA) and aims to present detailed data at the World Lung Cancer Conference in September [13][24]. - 康方生物 is also preparing to expand its commercial team to support the launch of its products, with a focus on ensuring effective market penetration [46][48]. Safety and Efficacy - The safety profile of 伊沃西单抗 was emphasized, with the drug designed to minimize adverse effects while maximizing therapeutic efficacy [20][44]. - The company highlighted that the drug's design allows for better accumulation in tumor environments, contributing to its safety and effectiveness [44][45]. Long-term Vision and Strategy - 康方生物 is committed to a long-term strategy in the biopharmaceutical industry, focusing on continuous innovation and development of its product pipeline [35][36]. - The company has a robust research and development team and plans to introduce additional non-oncology products in the near future [33][34]. Industry Context - The conference highlighted the competitive landscape of the oncology market, particularly the advancements in PD-1/PD-L1 therapies. 康方生物 aims to position its products as foundational therapies in cancer treatment [25][26][27]. Investor Communication - 康方生物 maintains a transparent communication policy with investors, ensuring that all research outcomes, regardless of their nature, are shared openly [9][10]. Additional Important Content - The conference included discussions on the implications of the trial results for future collaborations and the potential for accelerated clinical development in partnership with other companies [29][41]. - The management expressed confidence in overcoming market volatility and emphasized the importance of a strong, experienced team in navigating challenges [36][37]. This summary encapsulates the key insights from the conference call, focusing on the company's recent achievements, strategic direction, and commitment to transparency and safety in its product offerings.

股 票 研 究 [Table_industryInfo] 医药 [ Table_Main[ 康 TIna 方fbole] 生 _T 物itle （] 9926） [评Tab级le_：Inv est] 增持 当前价格（港元）： 35.40 依沃西获批上市，ASCO 展现显著 PFS 获益 2024.05.28 海 ——康方生物公司跟踪点评 [ 交Ta易bl数e_据M arket] 外 丁丹(分析师) 甘坛焕(分析师) 姜铸轩(研究助理) 52周内股价区间（港元） 31.25-51.95 当前股本（百万股） 866 公 0755-23976735 021-38675855 021-38674878 当前市值（百万港元） 30,651 司 dingdan@gtjas.com gantanhuan028803@gtjas.com jiangzhuxuan029022@gtjas.com 证书编号 S0880514030001 S0880523080007 S0880123100004 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 依沃西获批上市，ASCO数据展现显著PFS获益趋势， ...

Summary of the Conference Call for 康方生物 (Kangfang Biologics) on May 24, 2024 Industry and Company Overview - The conference call focused on 康方生物, a biopharmaceutical company specializing in innovative therapies, particularly in the oncology sector. Key Points and Arguments EGFR TKI Resistance ASOO Data 1. The overall survival (OS) trend lines presented were distinct and impressive, marking 康方生物 as the only company to achieve positive results in this area [1] 2. The company demonstrated excellent control over brain metastases, with enrolled patients reflecting real-world scenarios [1] 3. 80% of enrolled patients were resistant to third-generation EGFR TKIs, with all subgroup analyses yielding strong results [1] 4. The hazard ratio (HR) reported was the best at 0.46, which is critical data from the Phase III controlled trial. In comparison, 信达's orient-31 had an HR of 0.51, and checkmate (without Bevacizumab) had an HR of 0.75 [1] Future Clinical Development 1. Upcoming results from head-to-head studies with K drugs are expected soon, which will better illustrate the advantages over K drugs. The resistance to third-generation EGFR TKIs is just an initial step, with ongoing trials planned for future indications [1] 2. The company has developed its own ADC platform, with plans to enter IND in Q3. The dual antibodies NECTIN-4 ADC and TROP2 ADC are set to enter IND next year, with a focus on dual antibody combinations as a future goal [1] 3. An innovative product for psoriasis is also expected to enter clinical trials in the second half of the year [1] Commercialization Outlook 1. The commercialization of AK104 is progressing well, indicating a strong commercial platform and positive clinical experiences with low toxicity [1] 2. There is high anticipation among doctors for AK112, with initial prescriptions expected shortly. The product has already been used by 2,000 patients in clinical settings, contributing to a positive reputation among physicians and ensuring effective commercialization [1] Additional Important Content - The company emphasized the robustness of its dual antibody platform and the positive clinical experiences that support its commercialization efforts [1]

Summary of Conference Call Company and Industry Involved - The conference call was organized by CITIC Securities Co., Ltd. to assist a listed company in a whitelist meeting, limited to invited guests [1] Core Points and Arguments - The content of the meeting does not constitute investment advice under any circumstances [1] - Participants are advised to fully understand various investment risks and make investment decisions based on their own situations, bearing the investment risks independently [1] Other Important but Possibly Overlooked Content - The meeting emphasizes the importance of individual responsibility in investment decisions [1]