Core Viewpoint - The stock of CSPC Pharmaceutical Group (01093) has risen over 3%, currently up 3.39% at HKD 9.15, with a trading volume of HKD 297 million [1] Group 1: Company Developments - CSPC Pharmaceutical's wholly-owned subsidiary, CSPC Ouyi Pharmaceutical Co., Ltd., has had its application for the listing of Empagliflozin tablets accepted by the China National Medical Products Administration (NMPA) [1] - Empagliflozin is classified as a sodium-glucose co-transporter 2 (SGLT-2) inhibitor, primarily used for the treatment of type 2 diabetes, heart failure, and chronic kidney disease [1] Group 2: Market Performance - Empagliflozin, developed by Boehringer Ingelheim and co-promoted with Eli Lilly, is one of the three major SGLT-2 inhibitors globally, recognized for its unique glucose-lowering mechanism and cardiovascular and renal protective effects [1] - The sales scale of Empagliflozin tablets in China has rapidly expanded, achieving a milestone of RMB 1 billion in 2024, with a nearly 20% year-on-year growth in the first quarter of 2025 [1]

Group 1 - The core point of the article highlights that in December 2025, the worst-performing ordinary equity and mixed funds were both managed by Baoying Fund, specifically the Baoying Medical Health Hong Kong-Shenzhen Stock A and C, which reported returns of -13.20% and -13.26% respectively [1] - The Baoying Innovation Medical Mixed Initiation A and C funds also performed poorly, with returns of -14.14% and -14.19%, making them the worst in the mixed fund category [1] - All these funds are themed around the medical sector and are managed by the same fund manager, Yao Yi, who has a background in research and fund management [1] Group 2 - The latest quarterly report indicates that the top ten holdings of the Baoying Medical Health Hong Kong-Shenzhen Stock fund include major companies such as Innovent Biologics, Kelun Pharmaceutical, and others, while the Baoying Innovation Medical Mixed Initiation fund shares many of the same top holdings [1][2] - Notably, several of these top holdings experienced significant declines in December, with the largest holding, Innovent Biologics, dropping by 18.97%, and another major holding, 3SBio, declining by over 22% [2] - The performance metrics of the funds show that the Baoying Innovation Medical Mixed Initiation C has a cumulative net value of 0.8857 and a scale of 0.51 billion, while the A share has a cumulative net value of 0.8886 and a scale of 0.47 billion [3]

Core Viewpoint - The Hong Kong Innovative Drug ETF (159567) has shown a positive performance since its inception, with a slight increase in scale and significant trading activity in the early days of 2024 [1][2] Group 1: Fund Performance - The Hong Kong Innovative Drug ETF (159567) closed at a 0.38% increase on January 6, with a trading volume of 1.163 billion yuan [1] - As of January 5, the fund's latest share count was 10.479 billion shares, with a total scale of 8.331 billion yuan, reflecting a 5.50% increase in scale since December 31, 2025 [1] - The fund's management fee is set at 0.50% annually, and the custody fee is 0.10% annually [1] Group 2: Trading Activity - Over the past 20 trading days, the cumulative trading amount for the ETF reached 16.464 billion yuan, with an average daily trading amount of 0.823 billion yuan [1] - In the first two trading days of 2024, the ETF recorded a cumulative trading amount of 2.789 billion yuan, averaging 1.394 billion yuan per day [1] Group 3: Fund Holdings - The top holdings of the Hong Kong Innovative Drug ETF include companies such as BeiGene, CanSino Biologics, and Innovent Biologics, with significant percentages of the fund's total assets allocated to these stocks [2] - The largest holding is BeiGene, accounting for 10.62% of the portfolio, followed closely by CanSino Biologics at 10.55% and Innovent Biologics at 10.21% [2] - Other notable holdings include China National Pharmaceutical Group and Stone Group, with respective allocations of 9.62% and 7.56% [2]

Core Viewpoint - Daiwa has released a report recommending specific pharmaceutical stocks, highlighting the preference for Innovent Biologics (01801) and Hengrui Medicine (600276.SH) while maintaining a "sell" rating on CSPC Pharmaceutical Group (01093) [1] Group 1: Stock Recommendations - Innovent Biologics' target price has been raised from HKD 95 to HKD 112 [1] - Hengrui Medicine's target price remains at RMB 80 [1] - CSPC Pharmaceutical Group's target price is maintained at HKD 6.6 with a "sell" rating [1] Group 2: Market Outlook - The Chinese biopharmaceutical sector is expected to experience a comprehensive increase in 2025 [1] - For 2026, Daiwa suggests a more selective stock-picking strategy focusing on high-quality targets [1] Group 3: Key Focus Areas for 2026 - Daiwa plans to outline key clinical data release timelines [1] - The report will identify significant stock price catalysts [1] - Key areas of analysis will include PD-(L)1/VEGF, GLP-1, and siRNA [1]

Core Viewpoint - Daiwa has released a report recommending specific pharmaceutical stocks, highlighting Innovent Biologics (01801) and Heng Rui Medicine (600276) as top picks, with target price adjustments and ratings for other companies in the sector [1] Company Recommendations - Innovent Biologics' target price has been raised from HKD 95 to HKD 112 [1] - Heng Rui Medicine's target price remains at RMB 80 [1] - CSPC Pharmaceutical Group (01093) is rated "Sell" with a target price maintained at HKD 6.6 [1] Industry Outlook - The Chinese biopharmaceutical sector is expected to experience a comprehensive increase in 2025 [1] - For 2026, Daiwa suggests a more selective stock-picking strategy focusing on high-quality targets [1] - Key clinical data release timelines and significant stock price catalysts will be outlined for 2026 [1] - Important areas of analysis include PD-(L)1/VEGF, GLP-1, and siRNA [1]

Core Viewpoint - The approval of the inhaled powder formulation of Nintedanib by the National Medical Products Administration of China marks a significant milestone for the company, allowing it to conduct clinical trials for idiopathic pulmonary fibrosis and potentially for other related conditions [1] Company Summary - The stock price of the company increased by 4.13%, reaching HKD 8.83, with a trading volume of HKD 1.153 billion [1] - The approved clinical indication for the product is idiopathic pulmonary fibrosis, with potential applications for systemic sclerosis-related interstitial lung disease and progressive pulmonary fibrosis [1] - The product represents a key achievement of the company's inhalation technology platform, establishing a solid foundation for the development of subsequent inhalation formulations in its pipeline [1]

Core Viewpoint - The approval of the inhaled powder formulation of Nintedanib by the National Medical Products Administration of China marks a significant milestone for the company, allowing it to proceed with clinical trials for idiopathic pulmonary fibrosis and potentially other related conditions [1] Group 1: Product Development - The inhaled formulation of Nintedanib has received approval for clinical trials in China, specifically targeting idiopathic pulmonary fibrosis [1] - The product also shows potential for treating systemic sclerosis-related interstitial lung disease and progressive pulmonary fibrosis [1] - This approval is considered a key achievement for the company's inhalation technology platform, laying a solid foundation for the development of subsequent inhalation formulations [1] Group 2: Market Reaction - Following the announcement, the company's stock price increased by 4.13%, reaching HKD 8.83, with a trading volume of HKD 1.153 billion [1]

Group 1 - The core viewpoint of the report is that the Chinese biopharmaceutical sector experienced a comprehensive increase in 2025, and for 2026, a more selective stock-picking strategy is recommended, focusing on high-quality targets [1] Group 2 - Daiwa's top picks include Innovent Biologics and Hengrui Medicine, with Innovent's target price raised from HKD 95 to HKD 112, while Hengrui's target price remains at HKD 80 [1] - The rating for CanSino Biologics has been downgraded from "Buy" to "Hold," with its target price increased from HKD 100 to HKD 116 [1] - The rating for CSPC Pharmaceutical Group is maintained at "Sell," with a target price of HKD 6.6 [1]

Core Viewpoint - The approval of the inhalation powder formulation of Nintedanib by the National Medical Products Administration of China marks a significant advancement for the company, as it is the first inhalation formulation approved for clinical trials in China for the treatment of pulmonary fibrosis [1] Company Summary - The stock price of CSPC Pharmaceutical Group (01093) increased by over 4%, reaching a price of HKD 8.81 with a trading volume of HKD 595 million [1] - The inhalation formulation of Nintedanib is a multi-tyrosine kinase inhibitor that can slow the progression of idiopathic pulmonary fibrosis (IPF) [1] - Compared to the oral soft capsule formulation currently on the market, the inhalation product offers significant advantages, including improved lung exposure, better lung function, reduced systemic exposure, and significantly lower gastrointestinal side effects [1] Clinical Research Summary - Preclinical studies indicate that the inhalation formulation can achieve the same therapeutic effect at a dosage of 1/200 of the oral formulation, demonstrating good safety and efficacy [1]

Core Viewpoint - The approval of the inhalation powder formulation of Nintedanib by the National Medical Products Administration of China marks a significant advancement for the company in the treatment of idiopathic pulmonary fibrosis (IPF) [1] Company Summary - The stock price of the company, CSPC Pharmaceutical Group (01093), increased by over 4% in the morning session, currently trading at HKD 8.81 with a transaction volume of HKD 595 million [1] - The inhalation formulation of Nintedanib is the first inhaled drug approved in China for clinical trials aimed at treating pulmonary fibrosis [1] Product Summary - Nintedanib is a multi-tyrosine kinase inhibitor that can slow the progression of IPF, with the oral formulation currently available as soft capsules [1] - The inhalation formulation offers significant advantages over the oral version, including improved lung exposure, better lung function, reduced systemic exposure, and significantly lower gastrointestinal side effects [1] - Preclinical studies indicate that the inhalation product can achieve equivalent efficacy at 1/200 of the oral dosage, demonstrating good safety and effectiveness [1]