Expect multiple PoC data of LBL-024 in 2026

Expect multiple PoC data ofLBL-024in 2026 Target PriceHK$100.50(Previous TPHK$80.27)Up/Downside36.6%Current PriceHK$73.55 Leads Biolabs is a clinical-stage biotech with proven business developmentexecution. In FY25, the Company reportedrevenueofRMB177mn, driven bythe late-2025 out-licensing of LBL-047 (BDCA2/TACI, currently in Ph1 for SLE)to Dianthus Therapeutics. This agreement features US$38mn in upfront andnear-term milestones, with up to US$1.0bn in total value. This follows the late-2024LBL-051 (CD19/BCMA/CD3) out-licensing tonew-coOblenio for up toUS$614mn,plus royalties and equity.Financially,Leads Biolabs is well-capitalized, exiting 2025 with RMB1.55bn in cash against FY25 R&D expensesof RMB289mn. With lead clinical assets LBL-024 (PD-1/4-1BB) and LBL-034(GPRC5D/CD3)demonstrating highly promising preliminary efficacy,wemaintainour BUY ratingwithtarget price ofHK$100.50. China Healthcare Andy WANG(852) 36576288andywang@cmbi.com.hk Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk LBL-024(PD-1/4-1BB)poised to emerge as a next-generation IObackbonewith broad applicability.LBL-024 holds the distinction of beingthe first global4-1BB-targeted candidate to reach registrational stage. Theasset is in a single-arm registrational trial in China for 3L+ EP-NEC, with anNDA submission targeted for 3Q26.For 1L EP-NEC, following previouslydisclosedpromising Ph2 ORR data, we anticipate PFS and OS data at aconference in 2026, ahead of a planned Ph3 initiation in late 2026.BeyondEP-NEC,in 1L SCLC, LBL-024+ chemoyielded a striking preliminary ORRof 88%; we await the PFSand OSdataslated for ESMO 2026. In NSCLC,combination studies across 2L+ and 1L sq/nsq settings have enrolled over100 patients, and we expect data readouts at WCLC 2026.Additionally, theCompanyis expanding LBL-024’s footprint with six PoC studies(1Lmelanoma, 1L BTC, 1L HCC, 1L ESCC, 1L/2L TNBC, and2L+ovariancancer), alongside a 1LGC PoC study scheduled to initiate in 1H26. Stock Data LBL-034(GPRC5D/CD3):best-in-class potential in R/R MultipleMyelomaunlocking global BD optionality.LBL-034 has generatedencouragingdata inR/R MM. In a Ph1 study, the asset demonstrated afavorable safety profile and potent antitumor activity, notably in heavily pre-treated and difficult-to-treat subpopulations. This includes an 86% ORR(57% CR+) in BCMA-refractory MM patients, and a75% ORR in high-riskpatients with EMD. Building on this momentum, Ph2 studies initiated in Aug2025 are actively enrolling across four MM cohorts: 4L+ MM, 2L+ MM withEMD, BCMA-resistant MM, and plasma cell leukemia. Given the compellingclinicalprofile,management is actively pursuing global out-licensingpartnerships with leading pharma companies. Source: FactSet A wave of first-in-class ADCs and multi-specifics entering the clinic.Leads Biolabs is strategically advancing a highly innovative, early-stagepipeline. Ahighlight is LBL-054, a first-in-class T-cell engager ADC (TCE-ADC) targeting CDH17, currently in the IND-enabling stage. The Companyis preparing for a wave of IND submissions across both China and the USthroughout 2026 and 1Q27. This includes LBL-054, LBL-061 (EGFR/PD-L1ADC), LBL-076 (CD38/GPRC5D/CD3 tri-specific), LBL-066 (PD-L1/4-1BBPlus tri-specific), and LBL-051 (CD19/BCMA/CD3), alongsideothers. Maintain BUY.We look forward to data readouts of LBL-024 in SCLC andNSCLC. Factoringinthe recent out-licensing ofLBL-047,wereviseour TPfrom HK$80.27toHK$100.50(WACC:9.06%,terminal growth:4.0%).Earnings Summary Disclosures& Disclaimers Analyst CertificationThe research analyst who is primary responsible for the content of this research report, in whole or in part, certifies thatwith respect to the securities or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days afterthe date of issue of this report; (3) serve as an officer of any of the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies coveredin this report.CMBIGM or its affiliate(s) have investment banking relationship with the issuers covered in this report in preceding 12 months. CMBIGM Ratings : Stock with potential return of over 15% over next 12 months: Stock with potential return of+15% to-10% over next 12 months: Stock with potential loss of over 10% over next 12 months: Stock is not rated byC