Daiwa upgraded Hutchmed (00013) to Buy from Hold and raised its target price to HK$28.5 from HK$20, a 42.5% increase.

The broker said Hutchmed announced on September 3, 2026 a major collaboration with GSK on HMPL-A830, its third investigational anti-tumour antibody-drug conjugate. Under the deal, GSK will receive rights to develop and commercialise the drug outside Greater China, with total transaction value of up to $1.295 billion, including a $110 million upfront payment, according to ETNet.

Daiwa said the agreement came earlier than expected and was larger than anticipated, calling it a major positive surprise. It lifted its 2026-28 net profit forecasts by 25% to 37% after factoring in upfront and milestone income, and added a conservative valuation of about $500 million for Hutchmed's early ATTC pipeline. The main downside risks are weaker-than-expected sales or setbacks in development.