Innovent Biologics Inc (1801 HK): Innovative Drug Leader Venturing Overseas

We initiate coverage on Innovent Biologics (Innovent) with a BUY rating and target price of HKD129.54. A leading biopharmaceutical company in China, the company is embracing a valuation re-rating opportunity. 1) It first achieved IFRS net profit turnaround in 2025, and earnings growth may accelerate as sales volume ramps up. 2) Multiple pipeline assets have global blockbuster potential and have already entered partnerships with multinational corporations (MNCs), driving global expansion. In oncology, based on "second-gen ICI + ADC + X", the core asset IBI363's early clinical results demonstrated OS benefit potential; one global Phase III trial has achieved FPI. In ophthalmology, IBI324 was H2H superior to faricimab;