Optimize business model and adjust resources to post-clinical products with more competitive advantage: recently, the company has redistributed 234 million yuan from unused funds raised on the market, the main uses are as follows: 1) for TAB008, TOZ309 and other upcoming products, the company adjusts its business model and actively seeks commercial cooperation opportunities with domestic high-quality pharmaceutical companies, relying on the rich commercial sales experience of partners. It is expected to grab a certain market share quickly. 2) accelerate the phase III clinical progress of the self-developed anti-Her-2ADC innovative drug TAA013, consolidate the company's leading R & D and production advantages in the field of ADC, and 3) maximize the utilization of production capacity on the premise of meeting the supply of upcoming products on the market, and strategically increase the input of resources such as commercial development, facilities, raw materials and auxiliary materials. In summary, the company optimizes the existing early clinical and preclinical product pipeline, continues to increase innovative drug development, and further give play to the advantages of R & D technology platform, which can be expected in the future.

Improve the management structure and promote sustainable development: considering that the core products under research have entered the harvest period, the company has further improved its management structure, promoting Dr. Liu Jun to CEO and Ms. Huang Chunying to Deputy Chairman of the Board respectively, promoting long-term management succession and laying a good foundation for the company's long-term strategic development. Among them, Dr. Liu has been engaged in biomedical research and development for many years and has rich experience in international management. after taking office, Dr. Liu will continue to strengthen the company's leading edge in the field of ADC and create an innovative CDMO business platform, which is expected to add a new driving force for the company's performance growth. In addition, Ms. Huang will continue to promote the strategic development of the company, strengthen Dongyao brand building and public relations, pave the way for the upcoming listing varieties, and at the same time benefit the layout of the company's international cooperation projects.

Maintain the target price of HK $5.85 and buy rating: we use the DCF valuation method to value the company on the assumption that WACC is 10% and the sustainable growth rate is 3%. It is estimated that the reasonable valuation of the company is about HK $1.964 billion, corresponding to the target price of HK $5.85, which is 36.7% higher than the current price.