CICCICC issued a research report expressing continued confidence in the global development of SKB BIO-B's (06990) SKB264, raising the target price from HK$299.93 to HK$498.55 based on discounted cash flow valuation, while maintaining a "Buy" rating.

SKB BIO-B reported first-half revenue of RMB 950 million, with product sales reaching RMB 310 million during the period. SKB264 contributed RMB 302 million, representing 34% of the full-year forecast. SKB264 was previously approved for treating later-line triple-negative breast cancer (TNBC) and EGFR-mutated non-small cell lung cancer (NSCLC), and is currently in the early stages of accelerated growth. Management maintains its target of RMB 800-1000 million for SKB264's full-year sales.

The firm expects SKB264's two approved indications to be included in the national medical insurance catalog starting early next year. In the first half, the company recorded RMB 641 million in partnership revenue and R&D service income combined, including upfront payments from licensing SKB378 (TSLP) to WindwardBio and milestone payments from Merck.

Sales expenses accounted for 58% of sales revenue, reflecting commercial activities following SKB264's approval. The company holds RMB 4.46 billion in cash and financial assets, providing sufficient funding for commercialization and R&D development.