Investment Rating - The report maintains a "Buy" rating for the company 德琪医药 (6996 HK) with a target price of HKD 8.80, indicating a potential upside of 38.3% from the current price of HKD 6.36 [6][12]. Core Insights - The latest data on CLDN18.2 ADC confirms its superior efficacy and safety profile compared to potential competitors, leading to an upward revision of long-term sales forecasts and a positive outlook on the company's business development (BD) prospects [2][6]. - The differentiated second-generation TCE platform is significantly undervalued, with promising product and collaboration opportunities anticipated [2][6]. - The company is expected to achieve peak sales exceeding USD 5 billion globally, supported by ongoing clinical developments and regulatory approvals [6][7]. Financial Forecasts - Revenue projections for 2025E, 2026E, and 2027E are set at RMB 123 million, RMB 157 million, and RMB 253 million respectively, with significant growth anticipated in subsequent years [5][13]. - Gross profit margins are expected to remain high, with a gross margin of 81.9% in 2025E, slightly declining to 84.9% by 2027E [5][15]. - The company is projected to incur net losses of RMB 210 million in 2025E, narrowing to RMB 173 million by 2027E [5][13]. Market Performance - The stock has shown remarkable performance with a year-to-date change of 878.46%, reflecting strong investor interest and market confidence [4][12]. - The 52-week high and low for the stock are HKD 7.28 and HKD 0.54 respectively, indicating significant volatility and growth potential [4][12]. Clinical Development - The company has received breakthrough therapy designation for its CLDN18.2 ADC ATG022 for the treatment of CLDN18.2 positive, HER2 negative gastric cancer, with promising clinical trial results showing an overall response rate (ORR) of 40% in high-expression groups [6][7]. - Future development plans include various clinical trials aimed at expanding the indications and enhancing the product's market presence [6][7].
德琪医药-b（06996）：CLDN18.2ADC数据再证同类最佳，TCE平台价值远被低估，上调目标价