The Zhitong Finance App learned that Societe Generale Securities gave Hong Hanlin-B (02696) a target price of HK$68.5 and a “buy” rating for the first time.

Societe Generale Securities published a research report stating that currently Fuhong Hanlin-B has launched a number of major biosimilar drugs, such as rituximab, trastuzumab, adalimumab, and bevacizumab. In the short term, the company has already gained a first-mover advantage in R&D and marketing progress, and is expected to gain greater market share in market competition; in the medium to long term, the company will win in market competition with advantages such as product quality, production system, and sales capacity.

Furthermore, Fuhong Hanlin-B products are well-stocked, and combination therapy is poised to begin. Currently, the company is in the development stage of a number of innovative monoclonal and dual antibody drugs. The company is already in the first tier of domestic research and development of many major cancer types such as gastric cancer and esophageal cancer. Furthermore, the company has a reserve of products under development for various popular anti-tumor targets. Once cutting-edge research confirms that a combination solution has good curative effects, the company can quickly follow up to achieve a balance between risk and benefit.

As a result, Societe Generale Securities predicts that the company's revenue for 2020-2022 will be $917, 2,101 and 3,915 million, respectively, up 908.41%, 129.14% and 86.35% over the previous year. With the continuous advancement of the company's R&D projects and the implementation of product sales, Societe Generale Securities believes that the company is expected to experience an increase in valuation. Currently, it has given the company a target price of HK$68.50, giving it a “buy” rating.