Positive Early Durability in NSCLC Achieved; What‘s Next?

Research evidence excerpt

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M

Idea

September 16, 2026 02:02 PM GMT

Nanjing Leads Biolabs Co Ltd | Asia Pacific

Morgan Stanley Asia Limited+

Alexis Yan, CFA

Equity Analyst

Positive Early Durability in

NSCLC Achieved; What's Next?

What’s Changed

Nanjing Leads Biolabs Co Ltd (9887.HK)

From

To

Rating

Equal-weight

Overweight

Price Target

HK$85.00

HK$93.00

We see a positive risk-reward skew now, with a positive sixmonth PFS rate presented at WCLC for its core asset, LBL-024

(PD-L1/4-1BB), in 1L NSCLC. We have highlighted this as a key

milestone for the company. Next data to test '024's potential in a

broader range of cancers are expected at ESMO.

Key Takeaways

Recent WCLC data update on LBL-024 in 1L NSCLC marked a major clinical

milestone for Leads, evidencing translability of early ORR to durability.

Safety largely stable vs. prior data with low hepatotoxicity. Discontinuation at

10/63 looked numerically high but only three were ‘024-related, per Leads.

We raise PoS for LBL-024 in 1L NSCLC indication to reflect the early PoC

achieved, lifting our 2035 sales and earnings forecasts 5% and 12%.

Next inputs: data for LBL-024 in EP-NEC, BTC, SCLC and LBL-034 at ESMO

Nanjing Leads Biolabs Co Ltd (9887.HK, 9887 HK)

China Healthcare | China

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Sep 16, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Overweight

Attractive

HK$93.00

72

HK$54.10

HK$97.50-44.72

199

Rmb9,207.6

Rmb7,945.1

HK$70

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

EPS (Rmb)**

Prior EPS (Rmb)**

EPS (Rmb)§

Revenue, net (Rmb mn)

EBITDA (Rmb mn)

ModelWare net inc

(Rmb mn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

(1.23) (1.37)

(1.2)

(1.1)

177.3 248.2

(173.8) (289.2)

(211.4) (271.8)

1.58 (2.51)

(0.3)

(1.1)

891.1

66.9

282.7 (534.9)

313.9 (500.0)

NM

29.3

NM

7.2

9.3

7.0

11.4

342.6(7,844.1)(1,000.4) 843.2

(79.6) (21.5)

31.6 (38.2)

NM

27.7

NM

0.0

(2.3)

(3.0)

3.3

(5.4)

(94.9) (96.1) (99.5) (103.9)

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

…