CICC has issued a research report maintaining its outperform rating on JW THERAP-B (02126) following the company's improved operational loss reduction in the first half. Considering the company's loss reduction, SLE progress, and early-stage pipeline developments, along with rising industry valuation levels, the target price has been raised 151.7% to HK$6.04 based on DCF model, representing 19.6% upside potential from current stock price.

The company reported 1H25 results with revenue of 106 million yuan, up 22.5% year-over-year. Loss reduction exceeded expectations, primarily driven by effective cost control measures.

**First Half Operational Loss Reduction Driven by Cost Control and Licensing Partnership**

According to company announcements, Binuoda sales remained essentially stable year-over-year in 1H25. In April 2025, the company announced a licensing agreement with Juno, granting non-exclusive rights to JW sLVV production processes and related technical knowledge, with Juno paying consideration not exceeding $10 million. This is expected to have been partially recognized in the first half, contributing to performance.

Additionally, in 1H25, product gross margin improved to 51.1%, up 0.7 percentage points year-over-year. Sales expense ratio decreased to 72.0%, down 15.7 percentage points year-over-year. Administrative and R&D expenses also decreased by 45.7% and 39.0% respectively, demonstrating effective cost control. The loss reduction trend is expected to continue throughout the full year.

**New CD19/20 Dual-Target CAR-T Pipeline Disclosed, Data Expected by Year-End**

According to company announcements, in 2H24, the company initiated IIT studies for JWCAR201 in hematologic malignancies and autoimmune diseases, currently in patient enrollment phase. The company holds global rights to this product, and through dual-targeting combination, believes the product may demonstrate broader efficacy and higher signal threshold. Preliminary data in hematologic malignancies has shown encouraging results, with plans to present IIT data at the American Society of Hematology Annual Meeting in December 2025.

**Awaiting SLE Data Updates for CD19 CAR-T**

According to company announcements, the company initiated a Phase I clinical trial for SLE in May 2024, with patient enrollment completed as of 1Q25. The company is viewed as having first-mover advantage in CAR-T treatment for SLE in the domestic market, with potential data readouts anticipated in the future.