Core Viewpoint - CICC initiates coverage of Rebio Biotech-B (06938) with an "outperform" rating, setting a target price of HKD 100.0, indicating a potential upside of 44.9% from the current stock price [1][9]. Company Overview - Rebio is a global leader in small RNA drug development, possessing a proven and mature small RNA drug development platform [2][10]. - Since its establishment in 2007, the company has developed the GalNAc liver-targeting RiboGalSTAR platform and is expanding from liver-targeting to extrahepatic targeting [2][10]. - The company continuously iterates chemical modifications to enhance target specificity and sequence compatibility while reducing off-target effects, thereby improving efficacy and safety [2][10]. - As of the end of 2025, Rebio holds 473 patents and patent applications across major jurisdictions, establishing a comprehensive intellectual property portfolio [2][10]. - The company's R&D platform integrates the entire technical chain, ensuring efficiency in pipeline advancement from CMC production and early research to commercialization [2][10]. Clinical Assets - Rebio is one of the Chinese small RNA companies with the most clinical assets, having seven siRNA candidates in clinical stages as of the end of 2025, with four in Phase II [3][11]. - Key assets include RBD4059 (FXI), RBD5044 (ApoC3), and RBD1016 (HBV) [3][11]. - RBD4059 is the world's first and fastest clinical siRNA drug for treating thrombotic diseases, expected to enter Phase IIb clinical trials in 2026 [3][11]. - RBD5044 is the second siRNA targeting ApoC3 to enter clinical stages, following Arrowhead [3][11]. - RBD1016 is currently being evaluated for its drugability in HBV [3][11]. Market Perspective - The primary market concern is the drugability of FXI inhibitors; however, CICC believes that FXI inhibitors have demonstrated drugability in indications such as stroke and post-knee replacement surgery [4][12]. - FXI siRNA is expected to tackle atrial fibrillation indications due to its higher target inhibition rate [4][12]. Potential Catalysts - The industry is mapping data for FXI inhibitors and ApoC3 siRNA, with multiple Rebio small RNA drugs entering Phase II clinical trials and data readouts expected [5][13].

Investment Highlights - Company is a global leader in small nucleic acid drug development with a proven platform since its establishment in 2007 [1] - The company has developed the GalNAc liver-targeting RiboGalSTAR platform and is expanding from liver-targeting to extrahepatic targeting [1] - The company has a comprehensive intellectual property portfolio with 473 patents and patent applications as of the end of 2025 [1] - The research platform integrates the entire technology chain, ensuring efficiency from CMC production to commercialization [1] Clinical Assets - Company is one of the Chinese small nucleic acid enterprises with the most clinical assets, having 7 siRNA pipelines in clinical stages by the end of 2025 [2] - Core assets include RBD4059 (FXI), RBD5044 (ApoC3), and RBD1016 (HBV), with RBD4059 being the fastest progressing FXI siRNA drug for thrombotic diseases [2] - RBD4059 is expected to initiate Phase IIb clinical trials in 2026, targeting multiple thrombotic diseases [2] - Company believes that FXI inhibitors have validated drugability in conditions like stroke and knee replacement surgery, with potential for atrial fibrillation treatment [2] Financial Forecast and Valuation - Company forecasts EPS of -1.79, -2.21, and -2.92 for 2025 to 2027 [2] - The company is rated as outperforming the industry with a target price of 100.0 HKD, indicating a 44.9% upside from the current stock price [2]