On July 7th, a small-cap stock with a market value under HK$5 billion suddenly surged in the Hong Kong market. CH BIOTECH SER (08037) (hereinafter referred to as "the company") closed up 34.09% that day, having soared over 40% intraday, with a cumulative gain approaching 50% over three trading sessions. Behind this sharp price increase may not be blind speculation, but rather a long-overdue recognition of value. What underpins the company's confidence? The answer lies in four key strengths.

Clear Industry Inflection Point with Vast Growth Potential

BNCT is hailed within the industry as the "crown jewel" of radiotherapy. It is the world's only integrated drug-device therapy achieving cellular-level precision in tumor destruction. It relies on boron drugs to target and accumulate in cancer cells; a single 40-minute neutron irradiation can complete the treatment with minimal damage to healthy tissue. Its efficacy for recurrent head and neck cancers and glioblastoma significantly surpasses traditional radiotherapy like proton and heavy-ion therapy, achieving "cellular-level precision" unattainable by conventional methods. The BNCT industry is at a critical inflection point for commercial explosion, with the global market size expected to grow several-fold in the coming years, and the Chinese market will be a core source of this global growth. Sustained global industry momentum supports valuation. Data from YH Research shows the global BNCT market's compound annual growth rate from 2026 to 2032 will be as high as 36.3%, with the market size leaping from $528 million to $3.39 billion. Currently, BNCT is only approved for head and neck cancer. Clinical trials for indications like meningioma, breast cancer, and pancreatic cancer are steadily progressing; each new approved indication will open a new wave of market expansion.

Full Industry Chain Barrier Creates a Moat and Exclusive Competitiveness

As the only domestic company to have established a closed-loop BNCT "equipment-drug-hospital-insurance" full industry chain, the core of its barrier lies in the quadruple overlay of "clinical setting + exclusive agency + regional replication capability + combination therapy synergy." Its subsidiary, Pengbo (Hainan) Boron Neutron Hospital, is the first in China and the third globally to conduct BNCT clinical applications. The BNCT equipment and drugs it introduced are currently the only ones officially approved for market globally. Officially commencing patient consultations in March 2026 marks its transition from technology introduction to commercial clinical operations. By the end of June, the hospital had completed 40 BNCT treatments, including foreign patients, verifying its international diagnostic capabilities. A single device can treat over 2,500 patients annually. Coupled with supporting insurance installment payment plans, the hospital's operating cash flow possesses high certainty. According to analysis, Pengbo Hospital's initial 40 beds give it an annual capacity of 1,500–2,500 patients. Combined with the clinical demand dividend for BNCT, China sees approximately 4.8 million new cancer patients annually, with about 600,000 new head and neck cancer cases. The proportion of these requiring radiotherapy is as high as 80%, providing a vast market space for BNCT technology.

Dual-Pathway Strategy Provides Certainty for Earnings Growth

The market often focuses solely on BNCT, overlooking the company's other strategic move. The company's dual cutting-edge technology-driven logic of "BNCT precision radiotherapy + CAR-T immunotherapy" is already operational. The synergistic effect of combination therapy between the two will further amplify the company's long-term competitive advantage. Beyond the BNCT core engine, Longyao Biotech's key pipeline, LY007, is the first domestic product to receive an IND approval for a CD20-targeted CAR-T. LY007 is a CAR-T cell therapy product targeting relapsed/refractory CD20-positive B-cell non-Hodgkin lymphoma (R/R B-NHL), employing a novel technical approach combining the CD20 target with an OX40 co-stimulatory domain. Among evaluable patients in Phase I, 92.3% showed a clinical response of tumor shrinkage or disappearance, with an overall best complete response rate as high as 76.9%. This data has been presented at international authoritative academic conferences like ASCO, ASH, and EHA, with its clinical value globally validated. Longyao Biotech is simultaneously developing In Vivo CAR-T, BNCT combined with cell therapy, CLDN18.2-CAR-T, and other products. Policy support is also emerging. On July 3rd, the National Medical Products Administration released a draft announcement on optimizing the review and approval of cell and gene therapy products, clearing regulatory hurdles for the CGT industry. The core thrust of this document is twofold: firstly, clinically urgent CGT varieties can undergo "simultaneous R&D, submission, and review," and secondly, the filing system for nuclear medicine departments and cell therapy centers will be further liberalized. For Longyao, this means two things: the subsequent clinical progression and NDA timeline for its CD20 CAR-T are expected to accelerate, shortening the valuation realization cycle. Simultaneously, the policy dividend of "special-use drugs + real-world data" in Lecheng allows Longyao's CAR-T and Pengbo's BNCT to form a synergistic "solid tumor + hematologic tumor" diagnosis and treatment scenario within the same Hainan park. In other words, the company is a rare listed entity globally that has deployed both BNCT and CAR-T frontier cancer therapies.

Current Market Cap is Significantly Undervalued, Presenting Clear Re-rating Potential

The company's current market capitalization is only approximately HK$6.15 billion, far below the intrinsic value of its business segments, indicating a multi-fold undervaluation by the market of its business worth. Despite possessing first-mover advantages in technology introduction and domestic exclusive commercialization barriers, its total market cap as of July 9, 2026, was only about HK$6.24 billion, significantly lower than leading overseas players in the BNCT field. This creates a clear valuation mismatch where "technology value + industrial capability > market performance." For the secondary market, if one believes BNCT can grow into a tens-of-billions or larger market in China, then a HK$6 billion market cap is the early entry ticket. After a 50% rise in three days, what comes next isn't the stock chart, but Pengbo's next clinical counter—whether it's 50 cases, 100 cases, and the continued increase in the proportion of international patients. Each number adds weight to the valuation scale.