CICC: Maintains HUTCHMED (00013) "Outperform" rating, target price raised to HKD 28.

CICC has released a research report maintaining an "Outperform Industry" rating for HUTCHMED (00013) and raised its target price by 7.7% to HK$28. Considering that this transaction was completed this year, the firm has adjusted the revenue recognition timeline for 2026 and 2027, increasing the 2026 net profit forecast by 41% to US$78.07 million, while lowering the 2027 net profit forecast by 25% to US$66.38 million. Recently, HUTCHMED announced an exclusive development and licensing agreement with GlaxoSmithKline (GSK), granting GSK global development and commercialization rights for HMPL-A830 outside of China. CICC pointed out that the company will receive a US$110 million upfront payment and may achieve milestone payments of up to US$1.185 billion for research and development, regulatory, and commercialization, as well as tiered royalties based on annual sales. The firm stated that HMPL-A830 is the world's first KRAS-EGFR antibody-drug conjugate (ATTC) developed by HUTCHMED. Future clinical development will initially focus on indications for colorectal cancer, pancreatic cancer, and lung cancer, with HUTCHMED responsible for global Phase I clinical trials expected to start in the second half of 2026. The firm believes that GSK is a strong partner and noted that the ATTC platform has been endorsed by multinational pharmaceutical companies. In addition to HMPL-A830, the PI3K/PIKK series pipeline also has promising prospects.