(Huafu Securities): First time covering Vitallife International Holdings Limited (09887), giving it a "buy" rating and fully laying out the next generation IO and ADC therapy.

Huafu Securities released a research report stating that for the first time covering Virteren Bo (09887), they gave a "buy" rating, with an estimated operating income of 180 million, 94 million, and 10 million yuan respectively for Virteren Bo for the years 2025-2027, with income growth rates of 833%, -48%, and -90% respectively. According to the DCF model, with a WACC of 8.78% and a perpetual growth rate of 1%, the company's fair stock price is calculated to be 101.86 Hong Kong dollars, and the fair market value is 20.3 billion Hong Kong dollars. The main points of view of Huafu Securities are as follows: The company is based on the excitant platform + TCE platform + ADC, comprehensive layout of the next generation tumor immunotherapy From the X-body platform in 2015 (4-1BB engager), the LeadsBody platform in 2016, to the subsequent double-resistant and triple-resistant technology accumulation, the company has always taken "technology platform + innovative target" as its core, covering cutting-edge fields such as immune checkpoints and multispecific antibodies, and building a differentiated pipeline. LBL-024 (PDL1/4-1BB double antibody) shows historically best data in extrapulmonary neuroendocrine tumors The first-line SCLC has excellent efficacy, and the preliminary efficacy of NSCLC is encouraging: 4-1BB significantly enhances the efficacy of second-generation CAR-T, LBL-024 adopts a 2:2 structure design, weakening the affinity of 4-1BB, and LBL-024 has low hepatotoxicity in the same class of double antibodies. The increase in 3 levels of liver enzymes is only 1.3%, equivalent to PD-1 monotherapy, demonstrating the excellent safety and broad therapeutic window of LBL-024. Among the same class of double antibodies, LBL-024 is leading in clinical progress and is the world's first 4-1BB targeted molecule to reach a critical clinical stage. In addition to EP-NEC, clinical studies have been approved in areas with a large unmet clinical need such as SCLC, BTC, OC, NSCLC, ESCC, TNBC, etc., and encouraging clinical effects have been seen in SCLC, BTC, OC and other multiple cancers, and it is expected to become a promising effective anti-tumor drug for a wide range of indications, ushering in a critical clinical milestone within a year. LBL-034 (GPRC5D/CD3) double antibody: better safety and dosage intensity support greater space The 2:1 structure amplifies the binding of TAA, and spatial hindrance exposes the activated CD3 only when TAA is bound, while weakening the affinity of CD3, achieving a balance between efficacy and safety, with no observed DLT or 3 level CRS at the highest dose of 800g/kg. In phase I/II clinical studies, the ORR of LBL-034 at a dose of 400g/kg was 77.8% (VGPR was 61.1%); at a dose of 800g/kg, the ORR reached 90.9% (VGPR was 81.8%), similar to the efficacy of CAR-T. Other pipelines: BDCA2TACI IND in China and the United States in the second half of 2025, CD19/BCMA/CD3 triple antibody IND in the first quarter of 2026 in the United States, DLL3 TCEADC IND in China and the United States in the first half of 2027. Risk warning: risks of failure in innovative drug research and development, risks of intensified competition in domestic and overseas markets, risks of commercialization falling short of expectations, risks of loss of core technology and management personnel in the company.