CMSC International has released a research report initiating coverage on RIBOLIFE-B (06938) and adding it to its list of preferred stock picks. The firm believes the company holds a differentiated competitive advantage in the global small nucleic acid field, with a dense catalyst schedule expected in the second half of 2026, and sets a target price of HK$105.

The report highlights that the company's core catalysts are primarily centered on RBD4059, described as the world's first siRNA targeting FXI. Two Phase IIb clinical trials, for venous thromboembolism and stroke prevention in atrial fibrillation respectively, are both planned to commence in Europe in the third quarter. Data from the Phase IIa trial for coronary artery disease, expected to be released at the ESC conference in late August, is noted as particularly critical.

CMSC International also points out that the company possesses additional assets such as RBD5044 and RBD7022, and has established significant collaborations with Madrigal and Boehringer Ingelheim. The report suggests that the full value of the company's pipeline is not yet fully reflected in its market valuation.

The report further comments on the broader Hong Kong healthcare sector, noting that it faced overall pressure in the first half of the year. This was attributed to geopolitical uncertainties, capital diversion towards AI and tech stocks, and the implementation of policies related to anti-corruption and marketing compliance within the pharmaceutical industry.

Despite lingering market concerns over geopolitical issues and the anti-corruption drive, the firm believes the current valuations have largely priced in these short-term disturbances. With the anticipated delivery of clinical trial data and further policy implementation in the second half of the year, the sector is poised for a potential valuation recovery. CMSC International maintains a "Recommend" rating on the sector.