Core Insights - Innovative immune therapies, particularly immune cell engagers, are gaining significant attention in the international industry, with major multinational corporations (MNCs) like Pfizer, AstraZeneca, and Novartis accelerating their involvement [1][5] - The T-cell engagers (TCE) technology has seen rapid development, especially in hematological malignancies, with 13 business development (BD) transactions in 2025 totaling over $3.1 billion [1][3] - However, TCE technology faces limitations in solid tumors, prompting MNCs to shift focus towards myeloid cell engagers (MCE) technology, which shows promise in treating both solid tumors and autoimmune diseases [1][3] Company Overview - Kewang Pharmaceuticals is recognized as an early proponent of the MCE concept, holding $1.7 billion in significant BD deals and advanced MCE technology, which underscores its unique value [2] - The company has secured over $250 million in investments from leading institutions, including Eli Lilly Asia Fund and Tencent Investment, indicating strong market confidence in its future potential [2] Recent Developments - In late 2023, Kewang Pharmaceuticals entered into a BD deal exceeding $1.7 billion with AstraZeneca, focusing on the PD-L1/SIRPα dual antibody candidates from its proprietary BiME® platform, attracting global industry attention [3][4] - This collaboration highlights the innovative potential of the BiME® technology and reinforces the global competitiveness of the MCE platform as a next-generation immunotherapy [4] Market Potential - The MCE technology is positioned to address the challenges in treating solid tumors and autoimmune diseases, with Kewang's BiME® platform expected to achieve deeper and more durable B-cell depletion, leading to longer remission periods and lower relapse rates [4][6] - The autoimmune disease market is projected to grow to $176.7 billion by 2030, with Kewang's focus on multi-target inhibition of key pro-inflammatory cytokines and immune cell regulation [6][7] Pipeline and Innovations - Kewang Pharmaceuticals is advancing its pipeline with several candidates, including ES302 and ES304, targeting inflammatory bowel disease (IBD) and other autoimmune conditions, which are expected to improve patient compliance and treatment outcomes [7] - The company also holds a globally pioneering CD39/TGFβ dual antibody, ES014, which shows potential in treating various solid tumors and is set to present promising clinical trial results at the 2025 ESMO Asia conference [8] Industry Trends - The global focus on immune cell engagers is intensifying, with MCE technology gaining recognition among industry players, suggesting a growing value realization for Kewang Pharmaceuticals in this domain [8]

Core Insights - The company reported a 60% year-on-year revenue growth for the first three quarters of 2025, reaching 1.12 billion yuan, with a net loss of 64 million yuan, narrowing by 77% compared to the previous year [1] - The core product, Oubatinib, saw a 46% increase in sales to 1.01 billion yuan in the first three quarters, with third-quarter sales reaching 373 million yuan, reflecting a 35% year-on-year growth and a 14% quarter-on-quarter growth [1][2] - Research and development expenses for the first three quarters amounted to 676 million yuan, a 10% increase year-on-year, while sales expenses rose by 41% to 386 million yuan, with a sales expense ratio decreasing by 4.7 percentage points to 35% [1] Product Performance - Oubatinib's sales accelerated due to the approval for 1L CLL/SLL indications and increased contributions from MZL, leading to an upward revision of the 2025 sales target from over 35% to over 40% [2] - The company has initiated commercialization of Tanshizhuo monoclonal antibody for r/r DLBCL, approved in May 2025, and is conducting two registration studies for mesutoclax [2] Pipeline Development - The company plans to submit a new drug application for ITP indications for Oubatinib in the first half of 2026 and expects to read out IIb phase data for SLE by the end of 2025 [3] - The early-stage pipeline includes various technology platforms, with plans to submit 5-7 IND applications targeting malignancies and autoimmune diseases by 2026 [3] Financial Outlook - The earnings forecast for 2025 has been revised from a loss of 0.19 yuan per share to a profit of 0.09 yuan, with similar upward adjustments for 2026 and 2027 [4] - The target price has been increased from 11.8 HKD to 19.0 HKD, indicating a potential upside of 25% [4]