Investment Rating - The report provides an "Outperform" rating for multiple companies in the healthcare sector, including BeiGene, JD Health, WuXi Biologics, and others, indicating a positive outlook for these stocks [1]. Core Insights - The macro and industry environment is improving due to the resolution of policy uncertainties, the release of significant clinical data, and a resurgence in global M&A activity, leading to a notable increase in investor sentiment towards innovative drugs for 2026 [4][11]. - In oncology, the PD-1/VEGF dual antibody approach is transitioning from "mechanism validation" to "clinical and industrial resonance," with multiple global Phase III trials underway, expected to catalyze approvals and data releases within the year [5][17]. - The metabolic sector is seeing growth in the cash-pay market for GLP-1 drugs, driven by limited insurance coverage and high out-of-pocket costs, prompting companies to enhance accessibility through direct sales and pricing adjustments [6][25]. - In the autoimmune space, there is a growing concentration risk among major products from multinational corporations (MNCs), with new antibody platforms expected to yield significant data in 2026, potentially leading to new business development opportunities [7]. - The central nervous system (CNS) investment focus remains on advancing Aβ monoclonal antibody treatments, with key data expected to open up early intervention market opportunities [9]. Summary by Sections Oncology - The PD-1/VEGF dual antibody's clinical and industrial certainty is strengthening, with major companies conducting multiple global Phase III trials across high-value indications [17]. - The Pan-RAS precision therapy is entering a realization phase, with key Phase III data expected in 2026 for pancreatic cancer and NSCLC [22]. Metabolic - The cash-pay market for GLP-1 drugs is expanding due to limited insurance coverage, with companies like Eli Lilly and Novo Nordisk adopting different direct-to-consumer strategies to enhance accessibility [25][26]. - Small nucleic acid therapies are expected to upgrade treatment paradigms, showing competitive data in weight loss and safety profiles when combined with GLP-1 [30]. Autoimmune - MNCs are increasingly reliant on a few blockbuster products, with structural opportunities arising from new antibody platforms expected to report data in 2026 [7]. - The trend towards oral formulations in autoimmune diseases is gaining traction, offering advantages in adherence and competitive differentiation [7]. CNS - The focus in CNS remains on Aβ monoclonal antibody treatments, with advancements expected to shift treatment towards earlier intervention populations [9]. - New delivery methods, such as systemic administration of small nucleic acids, are being explored as complementary approaches [9].

Core Viewpoint - The article discusses the significant progress in China's innovative drug development, highlighting the increase in the number of new drugs approved and the growing competitiveness of Chinese pharmaceutical companies in both domestic and international markets [4][16]. Group 1: Growth of Innovative Drugs - In 2024, the number of domestically developed Class 1 new drugs in China reached 40, a substantial increase from just 9 in 2018 [2][3][4]. - Since the beginning of the 14th Five-Year Plan, 113 innovative drugs have been approved, which is 2.8 times the number approved during the 13th Five-Year Plan [4]. - As of August 2024, there are 910 new drugs available in China, indicating a robust growth in the pharmaceutical market [6]. Group 2: Clinical Trials and Breakthroughs - In a head-to-head clinical trial, the drug Ivoris (依沃西单抗) developed by Kangfang Biopharma outperformed the global best-selling cancer drug, Pembrolizumab (K drug), marking a significant achievement for Chinese innovation [7][9]. - The global sales of Pembrolizumab reached $29.482 billion in 2024, underscoring the competitive landscape [8]. Group 3: Market Dynamics and International Expansion - Chinese innovative drugs are not only performing well domestically but are also gaining traction in international markets, with products like Sidakio (西达基奥仑赛) achieving $1.596 billion in cumulative sales since its launch [12][13]. - The total transaction scale of technology licensing by Chinese pharmaceutical companies exceeded $34 billion in 2024, indicating a shift towards international collaboration [14][15]. Group 4: R&D Landscape and Challenges - As of August 2024, there are 5,380 new drug candidates in development in China, accounting for over one-third of the global pipeline [18]. - The average cost of developing an innovative drug is around $1 billion, with a typical development timeline of 10 years [20][21]. - The efficiency of drug development in China is improving, with preclinical phases taking 12-20 months compared to 24-36 months internationally [23]. Group 5: Policy Support and Ecosystem - The Chinese government has implemented various policies since 2008 to support innovative drug development, including expedited approval processes and financial incentives [28][29]. - The combination of government support, industry collaboration, and technological advancements is creating a conducive environment for innovation in the pharmaceutical sector [41]. Group 6: Future Outlook - The article emphasizes that the development of innovative drugs in China has made significant strides over the past decade, transitioning from imitation to innovation [42]. - The government's continued support for innovative drugs is expected to enhance the industry's growth and provide hope for patients [42].

Group 1 - JD.com (SWR 89618) has the highest short-selling ratio at 85.52%, followed by AIA Group (R 81299) at 77.11% and Lenovo Group (R 80992) at 67.79% [1][2] - Tencent Holdings (00700) leads in short-selling amount with 2.709 billion yuan, followed by Pop Mart (09992) at 974 million yuan and Xiaomi Group (W 01810) at 793 million yuan [1][2] - Huatai Securities (06886) has the highest deviation value at 40.23%, followed by Tong Ren Tang Technologies (01666) at 35.46% and China Ship Leasing (03877) at 26.75% [1][2] Group 2 - The top ten short-selling ratios include JD.com at 85.52%, AIA Group at 77.11%, and Lenovo Group at 67.79% [2] - The top ten short-selling amounts show Tencent Holdings at 2.709 billion yuan, Pop Mart at 974 million yuan, and Xiaomi Group at 793 million yuan [2] - The top ten deviation values are led by Huatai Securities at 40.23%, followed by Tong Ren Tang Technologies at 35.46% and China Ship Leasing at 26.75% [2]

Investment Rating - The industry investment rating is "Positive" (maintained) [6] Core Insights - The report highlights the significant commercial value of extrahepatic delivery technology for small nucleic acid drugs, which is expanding from liver diseases to multiple disease areas. Domestic companies are rapidly developing multi-target drugs and extrahepatic delivery platforms, which are expected to accelerate the release of potential clinical value [3][8] - The report emphasizes that multinational corporations (MNCs) are intensifying their focus on next-generation delivery platforms, moving from "liver validation" to "multi-organ expansion." This shift is crucial as it addresses unmet clinical needs in various tissues such as fat, muscle, central nervous system, heart, and kidneys [8] - The report indicates that 2026 is a pivotal year for small nucleic acid therapies, with domestic innovative drugs expected to become core assets for transactions. Domestic companies have accumulated rich experience in chemical modifications and liver-targeted delivery technologies, covering high-value areas such as hyperlipidemia, hypertension, hepatitis B, and weight loss [8] Summary by Sections Industry Overview - The report focuses on the pharmaceutical and biotechnology industry in China, specifically on small nucleic acid drugs and their evolving delivery technologies [5][6] Investment Recommendations and Targets - The report lists several investment targets, including: - YK Pharma (688658, Buy) - Hengrui Medicine (600276, Buy) - Xinda Biopharma (01801, Not Rated) - Other companies such as Chengdu XianDao (688222, Not Rated), Reborn Biotech (06938, Not Rated), and others [3]

截至月份: 2026年1月31日 狀態: 新提交 致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 公司名稱: 中國生物製藥有限公司 呈交日期: 2026年2月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01177 | 說明 | - | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | HKD | | 0.025 HKD | | 750,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 30,000,000,000 | HKD | | 0.025 HKD | | 750,000,000 | 本月底法定/註冊股本總額： HKD ...

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical industry [4] Core Viewpoints - The Chinese biopharmaceutical sector is expected to enter a new era of innovative drug exports in 2026, with significant opportunities arising from strategic acquisitions and internal research and development [3][8] - The report emphasizes the importance of selecting strong fundamental innovative drug stocks that have undergone sufficient adjustments, as well as actively monitoring new medical technologies and companies poised for recovery in 2026 [4][41] Summary by Sections Industry Performance - From January 26 to January 30, the pharmaceutical index fell by 3.31%, underperforming the CSI 300 index by 3.39%. Notably, the market has seen a significant adjustment in the innovative drug sector since August 2025, with the lowest holdings in active funds since 2021 [5][21] - The report highlights that 58 stocks rose while 407 stocks fell during the week, with notable gainers including Cap Bio (+26.49%) and Hualan Biological (+12.80%) [5][22] Company Insights - China Biopharmaceutical is enhancing its core competitiveness through strategic acquisitions and self-research, which is expected to lead to more opportunities for international expansion. The acquisition of Hegia in January 2026 and Lixin Pharmaceutical in July 2025 are key moves to strengthen its pipeline in chronic diseases and oncology [8][13] - The report identifies Hegia's siRNA delivery technology as a significant advancement, allowing for long-lasting treatment options in chronic diseases, while Lixin's unique LM-TME platform is expected to enhance the company's capabilities in oncology [9][11][14] Investment Recommendations - The report suggests focusing on innovative drug companies such as Heng Rui Medicine, Xin Li Tai, and China Biopharmaceutical, as well as companies involved in new medical technologies like AI healthcare and brain-computer interfaces [41][43] - It also highlights the potential for recovery in the medical device and pharmaceutical manufacturing sectors in 2026, recommending stocks that are currently undervalued [41][42] Market Trends - The report notes that the Chinese pharmaceutical industry has completed a transition from generic to innovative drugs, with companies like Heng Rui Medicine and China Biopharmaceutical leading the way in innovation [41][42] - The aging population and increasing healthcare demands are expected to drive growth in the sector, supported by a stable increase in medical insurance revenues and the development of a multi-tiered payment system [41][42]

Core Viewpoint - The report from CMB International indicates an adjustment in the profit forecast for China Biologic Products (01177) for 2025 to 2027, reflecting a decrease of 6%, an increase of 9%, and a decrease of 2% respectively, along with a revised DCF target price of HKD 8.5, corresponding to a 42 times P/E ratio for 2026 and a PEG of 1.3 based on core net profit predictions, while maintaining a "Buy" rating [1] Group 1 - CMB International forecasts that the growth rate of the Chinese biopharmaceutical industry is expected to maintain double digits from 2026 to 2027, driven by contributions from existing major products and several newly launched products, manageable centralized procurement risk exposure, and the normalization potential of BD revenue [1] - The company is transitioning its growth path from pipeline expansion to the layout of next-generation technology platforms, and from solely introducing products to a dual approach of introducing and going global, indicating the emergence of a global MNC big pharmaceutical enterprise [1]

Core Viewpoint - The report from CMB International indicates a revision in the profit forecast for China Biologic Products (01177) for 2025 to 2027, reflecting a decrease of 6%, an increase of 9%, and a decrease of 2% respectively, alongside a lowered DCF target price to HKD 8.5, corresponding to a 42 times P/E ratio for 2026 and a PEG of 1.3 based on core net profit predictions, while maintaining a "Buy" rating [1] Group 1 - CMB International anticipates that the growth rate of the Chinese biopharmaceutical industry is likely to maintain double digits from 2026 to 2027, driven by contributions from existing major products and several newly launched products, manageable procurement risk exposure, and the normalization potential of BD revenue [1] - The company is transitioning from pipeline expansion to the layout of next-generation technology platforms, and from merely introducing products to a dual approach of introducing and going global, indicating the emergence of a global MNC big pharmaceutical enterprise [1]

Core Viewpoint - The Chinese biopharmaceutical industry is expected to maintain double-digit growth from 2026 to 2027, driven by existing major products, several new product launches, manageable procurement risk exposure, and the normalization potential of BD revenue [1] Group 1: Company Insights - China National Pharmaceutical Group is transitioning from pipeline expansion to the layout of next-generation technology platforms, and from merely introducing products to a strategy that includes both introduction and international expansion, indicating the emergence of a global multinational pharmaceutical enterprise [1] - The forecast for the company's net profit from 2025 to 2027 has been adjusted to a decrease of 6%, an increase of 9%, and a decrease of 2%, respectively, reflecting updated predictions on product sales and revenue recognition from licensing collaborations [1] Group 2: Financial Adjustments - The DCF target price has been lowered to 8.5 HKD, while maintaining a "Buy" rating, indicating a positive long-term outlook despite short-term profit adjustments [1]

Group 1 - The core point of the article highlights the acceleration of domestic pharmaceutical mergers and acquisitions (M&A), with companies like Kanghua Biotech and China Biopharmaceutical leading the trend [1][5][8] - Kanghua Biotech announced its acquisition of Nameixin through capital increase and equity transfer, marking a significant move in the domestic M&A landscape [1] - The trend of M&A in China's innovative drug sector is seen as a response to the need for companies to enhance their capabilities and integrate resources [5][7] Group 2 - Historically, M&A activities in China's innovative drug sector have been limited due to various factors, including the ambition of biotech companies to grow independently and the insufficient quality of innovations [4][3] - The financial strength of domestic pharmaceutical companies is relatively lower compared to their international counterparts, with leading domestic firms holding around $20 billion in cash compared to over $300 billion for top global firms [4] - Recent M&A activities, although smaller in scale compared to international deals, indicate a shift towards realizing the value of existing capabilities within leading domestic companies [5][6] Group 3 - The M&A trend is driven by the need for domestic companies to leverage their clinical development and commercialization capabilities, as seen in the case of Kanghua Biotech and Nameixin [6][7] - The integration of resources through M&A is expected to enhance the competitive edge of domestic firms, allowing them to quickly fill technological gaps and expand their product pipelines [8][9] - The acceleration of internal circulation in the industry is anticipated to create a more favorable ecosystem for both large pharmaceutical companies and smaller biotech firms, fostering innovation and addressing unmet clinical needs [9][10]