DBS has issued a research report stating that AIM VACCINE's (06660.HK) leading position in the pneumonia and rabies vaccine market segments positions the company for a stock revaluation driven by expected profit recovery in 2026. The stock currently trades at a 56% discount to peers' 2026 projected sales valuations, placing it at the lower end of the peer valuation range. Given that AIM VACCINE is likely to achieve profitability in 2026, DBS believes the company has strong potential to refinance its debt, thereby narrowing the valuation gap with peers. Based on a 5.3x 2026 projected sales multiple, the bank derives a fair value per share and assigns a target price of HK$8.3, implying 59% upside potential.

The report indicates that AIM VACCINE is expected to achieve profitability in 2026, driven by a significant 39% reduction in R&D expenses following the completion of major clinical trials in 2025, and projected sales growth at a 45% compound annual growth rate from 2025 to 2027. This growth is attributed to the anticipated launch of the 13-valent pneumococcal conjugate vaccine (PCV13) and the serum-free rabies vaccine. The company is projected to capture approximately 20% and 10% market share in China's rabies and pneumonia vaccine markets, respectively, by 2026.

DBS notes that AIM VACCINE produces vaccines covering rabies, pneumonia, hepatitis A and B, influenza, mumps, and meningitis. The company's pneumonia vaccine demonstrates superior efficacy compared to Pfizer's product, while its rabies vaccine features a serum-free formulation that reduces side effects.

The bank believes AIM VACCINE has a high probability of obtaining regulatory approval based on the following factors: 1) Clinical data shows AIM VACCINE's PCV13 demonstrates superior immune response compared to Pfizer's original PCV13 across 10 serotypes; 2) For the rabies vaccine, Chinese authorities have allowed AIM VACCINE to skip Phase II clinical trials and proceed directly to the final stage, reflecting confidence in the vaccine. Additionally, the serum-free characteristics significantly reduce side effects such as allergic reactions.

As of market close, AIM VACCINE surged 9.96% to close at HK$5.74 per share. Hong Kong biotech stocks, including vaccine companies, have maintained strong momentum with sustained enthusiasm. For example, Sinobioway Biology-B, which listed on the Hong Kong Stock Exchange on August 11, currently has only one quadrivalent influenza vaccine on the market. Despite an IPO price of HK$12.9 per share, the stock opened with gains exceeding 162% on its debut day, and currently maintains a market capitalization exceeding HK$17.6 billion.

Multiple institutions have indicated that Hong Kong biotech stocks are entering a major bull market, and AIM VACCINE is expected to undergo value revaluation as the company's fundamentals improve.