Management meeting takeaways – JEF China HC Tour Series

Research evidence excerpt

Management meeting takeaways – JEF China HC Tour Series

Kelun Biotech (6990 HK)

Equity Research

May 20, 2026

The Long View: Kelun Biotech

Investment Thesis Risk/Reward - 12 Month View

We rate Kelun Biotech Buy, based on 1) SKB264's global best-in-class

Upside : Downside

ADC potential with endorsement from Merck; 2) its dedicated ADC sales 700 2.1 : 1 676 (+57%)

team could provide upside to product commercialization, backed by robust

data; and 3) with strong execution capabilities built into Kelun Pharma's 600

DNA, Kelun Bio could leverage parent company's decades-long extensive 500 520 (+21%)

network.

300 312 (-27%)

2025 2026 +12 mo.

Base Case, Upside Scenario, Downside Scenario,

HK$520, +21% HK$676, +57% HK$312, -27%

Revenue at Rmb1.7bn/2.8bn/4.3bn in Revenue at Rmb2.6bn/3.8bn/5.4bn in Revenue at Rmb1.2bn/1.8bn/2.5bn in

2025E/2026E/2027E. 2025E/2026E/2027E. 2024E/2025E/2025E.

Our PT at HK$520 is DCF-based. Our PT at HK$676 is DCF-based. Our PT at HK$312 is DCF-based.

Sustainability Matters Catalysts

Top Material Issues: Faster-than-expected ramp-up of SKB264 China

sales – 2H251) Adhering to business ethics, 2) Information security, 3) Risk management, 4) Product safety and

quality, 5) Supply chain management, 6) Protecting rights of clients, 7) Protecting rights of partners, Initial data discussion on SKB264 global trials by

8) Social responsibility, 9) Protecting rights of employees, 10) Environmental protection. Merck – 2H25

Company targets:

1) Greenhouse gas emissions: achieve -5% carbon emission density decrease by 2030E compared

with that in 2023. 2) Power consumption: achieve -5% power consumption density decrease by

2030E compared with that in 2023. 3) Energy consumption: achieve -5% natural gas consumption

density decrease by 2030E compared with that in 2023.