Sealand Securities Co.,Ltd. has released a research report initiating coverage on AB&B BIO-TECH-B (02627) with an "Add" rating. The report forecasts the company is poised to achieve profitability by 2027, potentially triggering a "Davis Double Play" with simultaneous improvements in both earnings and valuation. Driven by the rapid volume expansion of its core product, Huierkangxin, the company's operating revenue is projected to reach RMB 493 million, RMB 798 million, and RMB 1.24 billion for 2025, 2026, and 2027, respectively. With a rich vaccine pipeline, the company is considered to have substantial long-term growth momentum. The key viewpoints from Sealand Securities are as follows:
AB&B BIO-TECH-B focuses on innovative vaccine upgrades and has entered a phase of commercial realization. Established in 2015, the company is dedicated to the R&D, manufacturing, and commercialization of innovative vaccines and traditional vaccines utilizing novel technological approaches. Its quadrivalent influenza virus subunit vaccine (for individuals 6 months and older) is currently on the market. Furthermore, its 23-valent pneumococcal polysaccharide vaccine and freeze-dried human rabies vaccine (human diploid cell) have completed Phase I clinical trials.
Huierkangxin (Quadrivalent Influenza Virus Subunit Vaccine): With higher safety and a favorable immune profile, this product precisely targets the high-end, blue-ocean market for influenza vaccines. The domestic influenza vaccine market holds vast potential for growth, currently dominated by split-virion vaccines. Huierkangxin is China's first and only quadrivalent subunit influenza vaccine, offering advantages over split-virion vaccines, including comprehensive protection, higher purity of component antigens, and a lower risk of adverse reactions. Approved for market launch in China in 2023 for individuals aged 3 and above, its indication was expanded in 2025 to include those 6 months and older. The product generated revenue of RMB 260 million in 2024, surging 398% year-on-year. As the company's first approved product, it is currently in a phase of rapid volume expansion, leading the consumption upgrade in the influenza vaccine segment.
The investigational Human Diploid Cell Rabies Vaccine, based on WHO's gold-standard technology, is positioned to capture a dominant share of the high-quality, multi-billion-yuan rabies vaccine market. Rabies is a highly dangerous disease, and the number of individuals exposed in China shows an upward trend, with approximately 18 to 20 million people receiving rabies vaccinations annually in recent years. Among rabies vaccine production technologies, human diploid cells are recognized by the WHO as one of the safest substrates; currently, only two rabies vaccines using this cell line are available on the market. The company's investigational Human Diploid Cell Rabies Vaccine demonstrated good safety in Phase I clinical trials. It also incorporates a lyophilized formulation with a pre-filled diluent syringe and has developed multiple vaccination regimens, offering greater convenience and flexibility. Its Phase III clinical trial was initiated in December 2025.
The company possesses leading core technology platforms and has built a rich pipeline (11 candidates in development) covering both traditional upgrades and frontier innovations, outlining a clear succession path for growth. Through years of R&D and leveraging novel technologies aligned with international trends, the company has established comprehensive vaccine development support platforms and proprietary technology platforms. It is simultaneously advancing the development of innovative vaccines and the upgrade of traditional vaccines, resulting in a diverse vaccine pipeline. Guided by unmet public health needs, the company is expanding into indications with high commercial potential. Beyond the two core products—the quadrivalent influenza virus subunit vaccine and the human diploid cell rabies vaccine—the company is actively developing 11 other vaccines to precisely address market gaps.
Risk warnings include risks associated with innovative vaccine R&D, risks related to a concentrated product portfolio, risks of commercialization falling short of expectations, risks of intensifying market competition, and risks of share price volatility common to recently listed stocks.
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