Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 42.10 [4][7]. Core Insights - The company's product sales revenue is expected to continue growing rapidly, driven by the successful launch of key innovative drugs in the oncology and liver disease sectors [1][3]. - Increased promotional efforts are anticipated, particularly with the upcoming launch of the drug Amivantamab in the UK, which may lead to higher sales expenses [2]. - Long-term revenue from licensing agreements is expected to increase, particularly from a deal with Glenmark Specialty for the commercialization of Amivantamab in various regions [3]. Financial Summary - Revenue projections for the company are as follows: - 2023: RMB 10,104 million - 2024: RMB 12,261 million (growth rate of 21.3%) - 2025E: RMB 15,426 million (growth rate of 25.8%) - 2026E: RMB 15,600 million (growth rate of 1.1%) - 2027E: RMB 17,644 million (growth rate of 13.1%) [6][12] - Shareholder net profit estimates are: - 2023: RMB 3,278 million - 2024: RMB 4,372 million (growth rate of 33.4%) - 2025E: RMB 5,434 million (growth rate of 24.3%) - 2026E: RMB 4,739 million (decline of 12.8%) - 2027E: RMB 5,828 million (growth rate of 23.0%) [6][12] - The company’s earnings per share (EPS) projections are: - 2023: RMB 0.55 - 2024: RMB 0.74 - 2025E: RMB 0.92 - 2026E: RMB 0.79 - 2027E: RMB 0.98 [6][12] Target Price and Valuation - The target price has been adjusted to HKD 42.10 based on a discounted cash flow (DCF) model, reflecting a potential upside from the current price of HKD 36.62 [4][7].

Investment Rating - The report indicates a positive outlook for the pharmaceutical industry, with a recommendation for investment based on favorable fundamentals [17]. Core Insights - The Hong Kong pharmaceutical sector outperformed the Hang Seng Index in January, with the Hang Seng Healthcare Index rising by 8.6%, exceeding the index by 1.7 percentage points. This was driven by several factors, including profit warnings from CXO sector companies, advancements in internet healthcare, and supportive policies from the National Healthcare Security Administration (NHSA) for high-quality surgical robots [1][7]. - The NHSA has issued guidelines to support the pricing of high-quality surgical robots, allowing for premium pricing based on their advanced capabilities and precision in complex surgeries [3][15]. - The State Drug Administration continues to back the development of high-quality innovative drugs, emphasizing clinical value and providing market exclusivity for certain medications, including those for rare diseases and pediatric use [2][14]. Summary by Sections Industry Performance - The pharmaceutical industry in Hong Kong showed strong performance in January, with significant contributions from the CXO sector and internet healthcare companies like JD Health and Ark Health, which reported positive earnings forecasts [1][7]. Policy Support - Recent revisions to the Drug Administration Law emphasize support for innovative drug development, including streamlined approval processes and enhanced regulatory oversight to ensure drug safety and quality [2][14]. - The NHSA's new pricing guidelines for surgical robots aim to incentivize the use of advanced medical technologies, potentially leading to increased revenue for companies involved in this sector [3][15]. Company Recommendations - China Biologic Products (1177 HK) is expected to see double-digit sales growth by 2025, bolstered by its acquisition of Haogiya Biotech, which specializes in small nucleic acid drugs [4][16]. - WuXi AppTec (2359 HK) and WuXi Biologics (2269 HK) have also shown promising earnings forecasts, indicating a recovery in demand within the CXO sector [4][16]. - The report highlights the potential of leading medical AI platform companies, such as Insilico Medicine (3696 HK), which has secured multiple overseas licensing deals, reflecting high industry recognition for its capabilities in enhancing pharmaceutical R&D efficiency [4][16].

Market Overview - The Hang Seng Index closed at 26,885 points, up 0.1%, while the Hang Seng China Enterprises Index rose 0.5% to 9,093 points[1] - Total turnover in Hong Kong stocks was HKD 315.1 billion, a 10.4% increase from HKD 285.4 billion the previous day, indicating a rotation trading phenomenon[1] - Consumer staples, telecommunications, and discretionary consumer indices rose by 1.6%, 1.1%, and 1.0% respectively, while materials, energy, and financials fell by 4.6%, 1.1%, and 0.4%[1] Stock Performance - Haidilao (6862 HK) and Lenovo Group (992 HK) led the blue-chip gainers, rising by 4.0% and 3.7% respectively[1] - Zijin Mining (2899 HK) and New Oriental (9901 HK) were the biggest losers, falling by 4.8% and 3.1% respectively[1] U.S. Market Impact - The Dow Jones Industrial Average closed at 48,909 points, down 1.2%, indicating potential pressure on Hong Kong stocks today[2] - The Hang Seng Index futures closed at 26,510 points, reflecting a discount of 375 points[2] Sector Dynamics - The gaming sector in Hong Kong showed upward movement, with MGM (2282 HK) reporting a 21.4% year-on-year increase in net profit for the last three months of the previous year, exceeding market expectations[4] - Average daily hotel rates during the upcoming Lunar New Year are expected to be approximately 30% higher than last year, supporting revenue and sentiment in the gaming industry[4] Healthcare Sector - The Hang Seng Healthcare Index rose by 0.6%, with Innovent Biologics (1801 HK) projecting product sales revenue of approximately RMB 11.9 billion for 2025, reflecting a strong year-on-year growth of 45%[5] - The company reported a more than 60% year-on-year increase in Q4 sales revenue, aligning with expectations[5] Energy Sector - The energy and utilities sectors showed mixed performance, with gas and Hong Kong utilities slightly rising by 0.7% to 1.1%[5] - Recent declines in overseas natural gas wholesale prices have contributed to the defensive strength of these sectors[5]

2026 年 2 月 5 日 星期四 昨日港股窄幅波动。恒生指数及国企指数分别收报 26,847 点及 9,048 点，前者上升 0.1%，后者下跌 0.1%。港股成交合共 2,854 亿港元，较前日的 3,352 亿港元，下跌 14.9%，或反映投资者观望情绪增加。分类指数方面，能源、地产建筑、原 材料业指数分别上升 3.0%、2.1%、1.4%；资讯科技、非必需性消费则分别下跌 3.4%、0.4%。蓝筹个股方面，信义玻璃 (868 HK)及中国神华(1088 HK)领涨，分别上升 5.9%及 5.7%；携程集团(9961 HK)及腾讯控股(700 HK)领跌，分别下跌 6.1%及 4.0%。 主要内房港股明显上升，例如华润置地(1109 HK)、中国海外发展(688 HK)、越秀地产(123 HK)、万科企业(2202 HK)上涨 3.9%-6.2%。近期部分投资机构预期政府在短中期未来将公布更积极推动房地产政策。至目前为止,房地产销售数字仍需 突围，存销比率也较高。我们盼望推动政策的力度可较大。 ➢ 每日大市点评 昨晚美股表现分化，科技股受到抛售，例如 AMD(AMD US)下跌 17.3%，光伏股则上 ...

Market Overview - The Hang Seng Index closed at 26,835 points, up 0.2%, while the Hang Seng China Enterprises Index closed at 9,053 points, down 0.3%[1] - Total turnover in the Hong Kong stock market was HKD 335.2 billion, a decrease of 3.7% from the previous day's HKD 347.9 billion[1] - Sector performance varied, with materials, conglomerates, and industrial indices rising by 4.4%, 2.9%, and 2.8% respectively, while information technology, consumer discretionary, and telecommunications fell by 1.7%, 0.6%, and 0.1% respectively[1] Stock Performance - Leading blue-chip stocks included CSPC Pharmaceutical (1093 HK) and New Oriental (9901 HK), which rose by 8.1% and 6.4% respectively[1] - Kuaishou (1024 HK) and Baidu Group (9888 HK) were among the biggest losers, falling by 4.6% and 3.6% respectively[1] Industry Dynamics - The automotive sector is projected to see China National Heavy Duty Truck Group's total sales reach 450,000 units in 2025, a year-on-year increase of 25%[4] - The company expects to maintain a 39% market share, with heavy truck sales exceeding 300,000 units, leading global sales rankings[4] - The new energy heavy truck segment is anticipated to grow explosively, with a year-on-year increase of 230% expected in 2025[4] Pharmaceutical Sector - The pharmaceutical sector saw significant gains, with Insilico Medicine (3696 HK) surging 14.5% after announcing a milestone payment of HKD 39 million for a clinical trial[5] - The total collaboration agreement for the project is valued at USD 550 million, indicating potential for further milestone revenues as trials progress[5] Macro Economic Indicators - Hong Kong's retail sales in December 2025 increased by 6.6% year-on-year, slightly higher than the 6.5% increase in November[3] - South Korea's January CPI rose by 2.0%, lower than the 2.3% in December and below market expectations of 2.1%[3]

Market Overview - The Hang Seng Index closed at 26,776 points, down 2.2%, while the Hang Seng China Enterprises Index fell 2.5% to 9,080 points[1] - Total turnover in the Hong Kong stock market was HKD 347.9 billion, a 15.4% increase from HKD 301.6 billion last Friday[1] - The materials, energy, and healthcare indices dropped by 6.0%, 4.0%, and 3.5% respectively, while consumer staples, utilities, and financials saw smaller declines of 0.2%, 1.1%, and 1.6%[1] Stock Performance - Sands China (1928 HK) and Lenovo Group (992 HK) led the blue-chip gainers, rising by 4.1% and 1.8% respectively[1] - BYD Company (1211 HK) and China Unicom (762 HK) were the biggest losers, falling by 6.9% and 6.3% respectively[1] Commodity Prices - Oil prices decreased from USD 65 to approximately USD 62, while gold prices fell from USD 5,400 to around USD 4,700[2] - The decline in commodity prices is attributed to reduced geopolitical risks and expectations of limited interest rate cuts by the Federal Reserve[2] Economic Indicators - The ISM Manufacturing PMI for January in the U.S. was reported at 52.6, exceeding December's 47.9 and the market forecast of 48.3[3] - In mainland China, the transaction volume of new homes in 30 major cities reached 1.48 million square meters, a year-on-year increase of 983.8% due to last year's Spring Festival holiday[3] Industry Insights - Macau's gaming revenue for January was AUD 22.63 billion, up 24.0% year-on-year and 8% month-on-month, exceeding market expectations[4] - The healthcare index in Hong Kong fell by 3.5%, with Rongchang Bio (9995 HK) expecting a revenue increase of 89% to RMB 3.25 billion, significantly above market expectations[4] Energy Sector - The energy sector, particularly thermal power and electrical equipment stocks, saw significant declines, with Huaneng International (902 HK) down 6.8%[5] - Recent policy changes by the National Development and Reform Commission regarding electricity pricing have raised concerns in the market, despite potential long-term benefits[5]

Market Performance - Hang Seng Index and the National Enterprises Index rose by 0.5% and 0.4% respectively, while the Hang Seng Tech Index fell by 1.0%[1] - Major sectors such as banking, insurance, precious metals, and oil showed strong performance recently[1] - Market anticipates regulatory easing for property developers, leading to a rise in many mainland property stocks[1] Macroeconomic Indicators - Hong Kong welcomed nearly 50 million visitors last year, a 12% increase from 2024, with mainland visitors accounting for 38 million, up 11%[2] - Initial jobless claims in the U.S. decreased by 1,000 to 209,000, slightly above Bloomberg's forecast of 206,000[2] Industry Developments - The Hang Seng Healthcare Index fell by 0.8%, with recent trading in pharmaceutical stocks being relatively quiet[3] - Inpharmatica (3696 HK) surged by 9.7% after announcing promising results for its oral GIPR antagonist ISM0676, achieving a weight loss effect of up to 31.3% in trials[3] Energy and Utilities - New energy and utility stocks showed mixed performance, with CGN Mining (1164 HK) rising by 3.3% as uranium prices approached a two-year high of $98[4] - Companies like China Everbright Environment (257 HK) and Beijing Enterprises Water Group (371 HK) saw stock increases between 1.1% and 4.5%[4] Consumer Sector - The wholesale price of Moutai has rebounded, leading to an 8.6% surge in Moutai's stock (600519 CH)[4] - Qingdao Beer (168 HK), China Resources Beer (291 HK), and Budweiser (1876 HK) stocks rose by 3% to 5% following positive trends in the A-share liquor sector[4]

Market Overview - The Hang Seng Index rose by 0.1%, while the Hang Seng China Enterprises Index and the Hang Seng Tech Index fell by 0.2% and 1.2%, respectively[1] - International oil and gold prices surged, driven by geopolitical tensions and supply concerns, leading to gains in leading oil and gold stocks[1] - The latest CCL index reported at 145.54, a weekly increase of 0.63%, indicating a recovery in Hong Kong residential prices[1] Economic Indicators - The U.S. durable goods orders for November increased by 5.3%, surpassing Bloomberg's forecast of 3.1% and the previous value of -2.1%[3] - In China, the transaction volume of new homes in 30 major cities reached 1.19 million square meters, a year-on-year decline of 32.3%[3] Sector Performance - The pharmaceutical sector saw most stocks decline, while Junshi Biosciences (1877 HK) rose due to concerns over Nipah virus infections in India[4] - The automotive sector experienced a decline, with January retail sales expected to be around 1.8 million units, a month-on-month decrease of 20.4%[5] - Gold prices reached a new high, surpassing $5,000 per ounce, boosting demand for gold products and leading to gains in related stocks[5]

Market Overview - On January 23, Hong Kong stocks opened higher and fluctuated upwards, with the Hang Seng Index rising by 119 points (0.5%) to close at 26,749 points[1] - The Hang Seng Tech Index increased by 35 points (0.6%), closing at 5,798 points, with total market turnover reaching HKD 240.9 billion[1] - Southbound capital experienced a net outflow of HKD 1.6 billion[1] Regulatory Concerns - Chinese regulators are considering tightening the standards for mainland companies issuing shares in Hong Kong due to concerns over the quality of listed companies[1] - Potential measures may include setting a minimum market capitalization requirement for companies applying to list H-shares in Hong Kong[1] Sector Performance - The technology sector showed signs of recovery, with Alibaba (9988 HK) rising by 2.2%, Xiaomi (1810 HK) by 2.8%, and Kuaishou (1024 HK) by 2.7%[1] - The photovoltaic sector surged, with Xinyi Solar (968 HK) increasing by 11.1% and Fuyao Glass (6865 HK) by 10.4% following Tesla CEO Elon Musk's support for space photovoltaics[1] U.S. Market Dynamics - In the U.S., geopolitical tensions and conservative earnings guidance from Intel (INTC US) led to a decline in the Dow Jones Index by 285 points (0.6%) to 49,098 points[2] - The Nasdaq Index rose by 65 points (0.3%) to 23,501 points, while the S&P 500 Index increased by 2 points to 6,915 points[2] - Intel's stock fell by 17% due to supply constraints, while Nvidia (NVDA US) rose by 1.5% on news of Chinese approval for large tech firms to purchase H200 chips[2] Automotive Sector Highlights - The smart driving sector performed well, with Tesla's FSD system set to launch in China next month[3] - GAC Aion and Didi's Robotaxi R2 officially began mass production, and Cao Cao Mobility (2643 HK) plans to deploy 100,000 custom Robotaxis by 2030, with its stock rising by 10.2%[3] Healthcare Sector Insights - The Hang Seng Healthcare Index fell by 2.8% last week but rose by 1.1% on Friday[4] - Insilico Medicine (3696 HK) saw a rise after receiving FDA approval for its oral NLRP3 inhibitor for Parkinson's disease treatment[4] - Crystal Technology (2228 HK) reported significant advancements in CAR-T therapy, achieving a 100% complete response rate in lupus patients[4]

Market Overview - On January 22, Hong Kong stocks opened high but closed lower, with the Hang Seng Index slightly up by 44 points (0.2%) at 26,629 points; the Hang Seng Tech Index rose by 16 points (0.3%) to close at 5,762 points; total market turnover was HKD 234.9 billion[1] - Net inflow of southbound funds was HKD 5.24 billion[1] Key Stock Movements - Baidu Group (9888 HK) increased by 4.1% following the release of its Wenxin large model 5.0, attracting attention for AI applications[1] - Bilibili (9626 HK) rose by 3.3% due to progress in its content ecosystem and commercialization[1] - Alibaba (9988 HK) and JD Group (9618 HK) both saw approximately 1.0% gains, reflecting stable e-commerce demand[1] - The gold sector experienced a general pullback, with Lingbao Gold (3330 HK) down 3.2%, Zhaojin Mining (1818 HK) down 3.7%, and Zijin Mining (2899 HK) down 2.3%[1] Macroeconomic Insights - The People's Bank of China plans to implement a moderately loose monetary policy by 2026, indicating room for rate cuts and reserve requirement ratio reductions[3] - Structural tools will be optimized, including a 0.25 percentage point reduction in the re-lending rate and a new CNY 1 trillion re-lending for private enterprises[3] Industry Dynamics - The automotive sector shows high activity, with Minth Group (425 HK) rising 23% over two days, driven by its liquid cooling business and AI server orders[4] - Renewable energy and utilities stocks generally rose, with notable increases for companies like Flat Glass (6865 HK) up 3.5% and Longyuan Power (916 HK) up 2.3%[4] - The healthcare sector saw the Hang Seng Healthcare Index decline by 1.0%, while InSilico Medicine (3696 HK) continued to rise due to upcoming presentations at a major conference[5]