China Merchants Jinling International: Maintains SKB BIO-B "Buy" rating, target price raised to HKD 549

According to the Zhitong Finance APP, Jiayin International released a research report stating that based on the progress of regulatory approvals, there is a more optimistic expectation for the sales of Sac-TMT and Bodo Trastuzumab, raising the revenue forecast for 2025-2027 by 0-5%, and adjusting the peak forecast after PoS to RMB 6.4 billion and RMB 1.1 billion, respectively. The bank's DCF target price has risen to HKD 549, maintaining a "Buy" rating for SKB BIO-B (06990), optimistic about the significant global value of the ADC product matrix driven by clinical data. Sac-TMT sets a new benchmark for the treatment of EGFR mutation-resistant NSCLC: The results of the Phase III OptiTROP-Lung04 study (second-line EGFR mutation, TKI treatment progression NSCLC, Sac-TMT monotherapy compared to platinum-based chemotherapy) were announced at the ESMO conference: the Sac-TMT treatment group achieved statistically and clinically significant improvements in PFS and OS compared to the control group: median PFS was 8.3 vs. 4.2 months, HR=0.49 (95% CI: 0.39-0.62, p<0.0001); median OS was NR vs. 17.4 months, HR=0.60 (95% CI: 0.44-0.82, two-tailed p=0.001). The OS HR value is significantly better than other therapies for the same indication, which the bank believes is partly related to the chemotherapy regimen providing more options for subsequent treatments and lower cumulative toxicity. Consistent OS and PFS benefits were also observed across all predefined key subgroups, with an OS HR of 0.59 in patients treated with third-generation EGFR therapies in the first line, consistent with the overall population. The incidence of ≥3 grade TRAE was similar between the two groups (58% vs. 53.8%). The marketing application for this indication was approved for listing in October. Compared to the competing product Dato-DXd targeting the same site, Sac-TMT has a lower incidence of oral mucositis, ocular toxicity, and interstitial pneumonia, while the incidence of hematological toxicity is higher but with more clinical management experience. Notably, the Dato-DXd Phase III TROPION-Lung01 study (later-line nsq-NSCLC) did not achieve statistical superiority in OS, including the driver gene mutation subgroup. The ADC product matrix has also made significant progress in breast cancer: The marketing application for Sac-TMT in the treatment of second-line and above HR+/HER2- breast cancer was recently accepted by the CDE, and HER2 ADC Bodo Trastuzumab was approved for the first time in October for 2L+ HER2-positive breast cancer, while the results of their respective Phase III studies were also announced at the ESMO conference: 1) In the OptiTROP-Breast02 study, Sac-TMT achieved statistical superiority in PFS (median 8.3 vs. 4.1 months, HR 0.35, p<0.0001), with an initial OS HR of 0.33, and statistically significant PFS benefits were observed across all predefined subgroups, including various lines of treatment and levels of HER2 expression. The bank is optimistic about the potential for future applications in patients resistant to DS-8201. 2) In the KL166-III-06 study, Bodo Trastuzumab outperformed T-DM1, significantly extending median PFS (11.1 vs. 4.4 months, HR 0.39, p< 0.0001)