Sunshine Guojian has reported 9M26 revenue, attributable NP, and recurring NP of RMB1.39bn, RMB590mn, and RMB440mn, respectively (+24.8%/+47.3%/ +25.6% YoY). For 3Q26, revenue, attributable NP, and recurring NP were RMB530mn, RMB220mn and RMB180mn, respectively (+11.1%/+3.6%/-6.4% YoY). Revenue continues to grow, mid- to late-stage products are reaching the market, and early-stage R&D is progressing steadily. On overseas partnerships, Pfizer continues to advance 707’s clinical development outside China. We think that progress in these trials broadens the company’s long-term growth runway. Successive commercialization of four autoimmune products targeting IL-17, IL-1β, IL-4Rα and IL-5, together with progress in promising early-stage candidates, could further strengthen its leadership in autoimmune diseases. Maintain OVERWEIGHT.
We maintain our earnings forecasts, with 2026/2027/2028 attributable NP of RMB641mn/RMB748mn/RMB819mn (-78%/+17%/+9% YoY). Against an average market capitalization of RMB33.4bn for comparable biotech companies, we assign a fair equity value of RMB49.4bn, incorporating a premium for 707’s potential, successful delivery of new drugs and the company’s commercialization capabilities. Our target price is RMB55.12 (previously RMB60.94, with the change mainly reflecting lower peer market capitalizations). Maintain OVERWEIGHT.