CICC: Maintains JW THERAP-B outperforming industry rating and raises target price to HKD 6.04

Zhitong
2025.09.03 02:47
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CICC released a research report, maintaining the outperform rating for JW THERAP-B and raising the target price to HKD 6.04, representing a 19.6% upside from the current stock price. The company's operating profit in the first half of the year showed a significant reduction in losses, with revenue increasing by 22.5% year-on-year. The trend of loss reduction is expected to continue throughout the year, and the newly disclosed CD19/20 dual-target CAR-T pipeline is expected to announce data by the end of the year

According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that due to the significant reduction in operating losses of JW THERAP-B (02126) in the first half of the year, it maintains an outperform rating for the industry. Considering the company's loss reduction, SLE, and early pipeline progress, along with the upward adjustment of industry valuation, the target price has been raised by 151.7% to HKD 6.04, indicating a 19.6% upside potential compared to the current stock price. The company announced its 1H25 performance, with revenue of CNY 106 million, a year-on-year increase of 22.5%, and the loss reduction situation was better than expected, mainly due to effective cost control.

CICC's main points are as follows:

Good reduction in operating losses in the first half of the year, mainly due to cost control and achieving licensing cooperation

According to the company's announcement, in 1H25, the sales of Beinuoda remained basically stable year-on-year. In April 2025, the company announced a licensing cooperation with Juno, granting it a non-exclusive license for the JW sLVV production process and related technical knowledge, with a consideration not exceeding USD 10 million, which is expected to be partially recognized in the first half of the year, enhancing performance. In addition, the gross profit margin of the company's product sales increased to 51.1%, a year-on-year increase of 0.7 percentage points, with a sales expense ratio of 72.0%, a year-on-year decrease of 15.7 percentage points. Administrative and R&D expenses also decreased by 45.7% and 39.0%, respectively, demonstrating good cost control, and the company is expected to continue the trend of loss reduction throughout the year.

Newly disclosed CD19/20 dual-target CAR-T pipeline, data readout expected by the end of the year

According to the company's announcement, in 2H24, the company initiated IIT research on JWCAR201 for hematological tumors and autoimmune diseases, which is currently enrolling patients. The company holds global rights for this product, and by combining dual-targeting, it believes this product is expected to have broader efficacy and higher signal thresholds. According to the company's announcement, encouraging preliminary data has been obtained for hematological tumors, with plans to announce IIT data at the American Society of Hematology annual meeting in December 2025.

Looking forward to updates on SLE data for CD19 CAR-T

According to the company's announcement, it initiated a Phase I clinical trial for SLE in May 2024, with patient enrollment completed by 1Q25. The company is believed to have a first-mover advantage in the CAR-T treatment of SLE in China, and future potential data readouts are anticipated

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