Core Viewpoint - CICC reports that Kangfang Biopharma (09926) achieved a 37.75% year-on-year revenue growth in the first half of the year, aligning with the bank's expectations [1] Group 1: Financial Performance - The company's performance meets CICC's expectations, leading to a maintenance of earnings forecasts for the next two years [1] - CICC has raised the target price for the company by 87.5% to HKD 225 [1] Group 2: Product Development - The clinical success rate for AK112 has been upgraded by CICC, and the forecast for the Summit AK112 re-licensing has been included in the valuation [1] - Core drugs, AK104 and AK112, have been included in the national medical insurance catalog, indicating strong clinical advantages and high recognition among medical professionals [1] Group 3: Market Outlook - Given the significant clinical advantages and high acceptance of the products, along with accelerated sales investments by the company, CICC holds an optimistic view on domestic sales for these two products [1]

Core Viewpoint - CICC reports that Kangfang Biopharma (09926) achieved a 37.75% year-on-year revenue growth in the first half of the year, aligning with the bank's expectations [1] Group 1: Financial Performance - The company’s performance meets CICC's expectations, leading to a maintenance of earnings forecasts for the next two years [1] - CICC has raised the target price for the company by 87.5% to HKD 225 [1] Group 2: Product Development - The clinical success rate for AK112 has been upgraded by CICC, and the forecast for the re-licensing of Summit AK112 has been included in the valuation [1] - Core drugs, AK104 and AK112, have been included in the national medical insurance directory, indicating strong clinical advantages and high recognition among medical professionals [1] Group 3: Market Outlook - Given the significant clinical advantages and high acceptance of the products, along with the company's accelerated sales investment, CICC holds an optimistic view on the domestic sales of these two products [1]

Core Viewpoint - CICC maintains the profit forecast for Kangfang Biopharma (09926) for 2025 and 2026, reiterating an outperform rating and raising the target price by 87.5% to HKD 225.00, indicating a 33.1% upside potential [1] Group 1: Financial Performance - The company's 1H25 revenue reached CNY 1.412 billion, representing a year-on-year growth of 37.75%, aligning with CICC's expectations [1] - The sales revenue of core products in 1H25 was CNY 1.402 billion, with a year-on-year increase of 49.2%, and a gross margin of 79.25%. The sales and marketing expense ratio decreased by 7.1 percentage points year-on-year to 47.80% [2] Group 2: Product Development and Clinical Trials - The final analysis of the HARMONi-A trial demonstrated statistically significant overall survival (OS) benefits for AK112 in treating 2L EGFRm NSCLC, with an OS hazard ratio of 0.80 and a maturity of 52%. This result highlights AK112's potential to significantly improve patient survival in a market with unmet clinical needs [3] - AK112 has 13 ongoing registration/Phase III clinical trials globally, covering indications beyond lung cancer. In the lung cancer domain, it has 8 registration/Phase III studies, with 4 achieving clinical endpoints. Additional trials are underway for various cancers, including biliary cancer and triple-negative breast cancer [4]