CICC released a research report stating that, due to HBM HOLDINGS-B's (02142) increased revenue from BD upfront payments, it has raised its 2026 profit forecast by 228% to $62 million and introduced a 2027 profit forecast of $60 million for the first time.
The firm maintained its Outperform rating. Based on a DCF valuation and the raised profit forecasts, CICC increased its target price by 34.3% to HK$18.00, implying a 44.5% upside from the current share price.
CICC's main views are as follows: Recent Company Developments On December 29, 2025, the company and Lannacheng announced a long-term strategic collaboration to jointly advance the development of next-generation Radionuclide Drug Conjugates (RDCs).
Partnering with Yantai Lannacheng to co-develop RDC drugs, HBM's proprietary Harbour Mice platform can directly produce fully human monoclonal antibodies in H2L2 and HCAb formats, featuring lower immunogenicity, superior tissue penetration, and high specificity and stability, thereby enhancing the efficacy of RDC drugs and reducing their toxic side effects.
In 2H25, HBM had secured multiple overseas licensing collaborations, including partnerships with global MNCs such as Bristol Myers Squibb (BMS) and Pfizer. 1) On December 17, 2025, the company entered into a long-term global strategic collaboration agreement with BMS to jointly develop next-generation multi-specific antibody therapies. As consideration, HBM will receive an upfront payment of $90 million; if BMS opts to advance all potential projects, the company could receive up to $1.035 billion in development and commercial milestone payments. 2) On November 19, 2025, the company's wholly-owned subsidiary, Nona Biotechnology, signed a non-exclusive license agreement with Pfizer to advance preclinical antibody discovery work for multiple potential diseases. Pfizer will gain global rights to use the HCAb platform, and as consideration, Nona Bio will receive an upfront payment and milestone payments based on regulatory, clinical, and commercial achievements. 3) On November 24, 2025, the company and AstraZeneca announced a further expansion of their collaboration scope to include ADC and TCE drugs.
Risk warnings: Overseas licensing progress may fall short of expectations; clinical data may disappoint; risk of deteriorating competitive landscape; potential setbacks in collaboration progress with AstraZeneca; risk of R&D failure for drugs targeting the same pathways within the industry.
