Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 19.82 [1][6]. Core Insights - The company has successfully licensed its TL1A/IL-23p19 dual antibody SIM0709 to Boehringer Ingelheim for an upfront payment of €42 million and a total deal value of €1.058 billion, indicating strong validation of its innovative research and development capabilities [1]. - The company has seen recognition from major multinational corporations (MNCs) such as AbbVie, BI, and Ipsen for its innovative pipeline, with four projects launched overseas since 2025 [1]. - The global market for Inflammatory Bowel Disease (IBD) is projected to reach USD 28 billion by 2028, with the TL1A target showing significant potential for treatment [2]. - SIM0709 is designed as a long-acting dual antibody with a potential dosing interval of three months, which could position it favorably in the competitive landscape for IBD treatments [3]. - Boehringer Ingelheim's established global development capabilities are expected to significantly support the global expansion of SIM0709, as it is a key player in the autoimmune disease treatment space [4]. - The company is advancing its innovative platforms, including TCE and ADC, with ongoing clinical trials and collaborations that are expected to yield data within the year [5]. Financial Projections - The company forecasts adjusted net profits of RMB 1.18 billion, RMB 1.40 billion, and RMB 1.52 billion for the years 2025, 2026, and 2027 respectively, reflecting a compound annual growth rate (CAGR) of 14% [6][12]. - The earnings per share (EPS) estimates are projected at RMB 0.45, RMB 0.54, and RMB 0.59 for the years 2025, 2026, and 2027 respectively [6][12]. - The company maintains a price-to-earnings (PE) ratio of 33.19x for 2026, supporting the target price of HKD 19.82 [6][12].