Core Insights - The top three companies with the highest short positions as of January 9 are Vanke Enterprises (02202), Dongfang Electric (01072), and COSCO Shipping Holdings (01919), with short ratios of 18.74%, 17.39%, and 16.49% respectively [1][2] - The companies with the largest absolute increase in short positions are Goldwind Technology (02208), Zhaoyan New Drug (06127), and Jingtai Holdings (02228), with increases of 6.84%, 2.14%, and 1.85% respectively [1][2] - The companies with the largest absolute decrease in short positions are COSCO Shipping Energy (01138), Sanhua Intelligent Control (02050), and Huahong Semiconductor (01347), with decreases of -1.77%, -0.80%, and -0.71% respectively [1][3] Top 10 Short Positions - Vanke Enterprises (02202) has a short position of 413 million shares, representing a short ratio of 18.74% [2] - Dongfang Electric (01072) has a short position of 70.93 million shares, with a short ratio of 17.39% [2] - COSCO Shipping Holdings (01919) has a short position of 475 million shares, with a short ratio of 16.49% [2] - Other notable companies in the top 10 include Heng Rui Medicine (01276) at 15.19% and Ping An Insurance (02318) at 14.74% [2] Largest Increases in Short Positions - Goldwind Technology (02208) saw its short ratio increase from 4.35% to 11.18%, an increase of 6.84% [2] - Zhaoyan New Drug (06127) increased from 6.65% to 8.79%, an increase of 2.14% [2] - Jingtai Holdings (02228) increased from 3.34% to 5.19%, an increase of 1.85% [2] Largest Decreases in Short Positions - COSCO Shipping Energy (01138) decreased from 7.11% to 5.34%, a decrease of -1.77% [3] - Sanhua Intelligent Control (02050) decreased from 6.52% to 5.72%, a decrease of -0.80% [3] - Huahong Semiconductor (01347) decreased from 4.85% to 4.13%, a decrease of -0.71% [3]

Core Viewpoint - Heng Rui Medicine's stock price has shown fluctuations, with a recent decline of 2.01% and a year-to-date increase of 3.91% [1][2]. Company Overview - Heng Rui Medicine, established on April 28, 1997, and listed on October 18, 2000, is primarily engaged in the research, production, and sales of pharmaceuticals, focusing on oncology [2]. - The company's product portfolio includes anti-tumor drugs, analgesics, and contrast agents, addressing various diseases such as autoimmune, metabolic, cardiovascular, infectious, respiratory, hematological, pain management, neurological, ophthalmic, and renal diseases [2]. - The main revenue sources are 86.88% from product sales, 12.63% from licensing income, and 0.49% from other sources [2]. Financial Performance - For the period from January to September 2025, Heng Rui Medicine achieved a revenue of 23.188 billion yuan, representing a year-on-year growth of 14.85%, and a net profit attributable to shareholders of 5.751 billion yuan, with a year-on-year increase of 24.50% [3]. - The company has distributed a total of 9.303 billion yuan in dividends since its A-share listing, with 3.568 billion yuan distributed in the last three years [4]. Shareholder Information - As of September 30, 2025, the number of shareholders increased to 397,300, with an average of 16,058 circulating shares per person, a decrease of 8.21% from the previous period [3]. - Major shareholders include Hong Kong Central Clearing Limited, holding 487 million shares, and China Securities Finance Corporation, holding 95.4 million shares, with some reductions in holdings noted [4].

Core Insights - The article highlights the top and bottom AH share premium rates, with Northeast Electric (00042) leading at 785.25% and China Merchants Bank (03968) at an undisclosed rate [1][2]. Group 1: Top AH Share Premium Rates - Northeast Electric (00042) has a premium rate of 785.25% with a deviation value of -79.73% [1][2]. - Zhejiang Shibao (01057) follows with a premium rate of 414.81% and a deviation value of 55.09% [1][2]. - Junda Co., Ltd. (02865) ranks third with a premium rate of 306.91% and a deviation value of 91.03% [1][2]. Group 2: Bottom AH Share Premium Rates - China Merchants Bank (03968) has an undisclosed premium rate and a deviation value of 1.92% [2]. - Contemporary Amperex Technology Co., Ltd. (Ningde Times) (03750) shows a premium rate of -13.07% with a deviation value of -2.35% [2]. - Heng Rui Medicine (01276) has a premium rate of -2.62% and a deviation value of -3.51% [2]. Group 3: Deviation Values - Junda Co., Ltd. (02865) leads in deviation value at 91.03% [1][2]. - Goldwind Technology (02208) has a deviation value of 80.58% [1][2]. - Nanjing Panda Electronics (00553) follows with a deviation value of 61.61% [1][2].

Summary of Jiangsu Hengrui Pharmaceuticals Conference Call Company Overview - **Company**: Jiangsu Hengrui Pharmaceuticals (1276.HK) - **Industry**: Innovative Pharmaceuticals - **Market Cap**: HK$473,754 million (US$60,798 million) [4][9] Key Points Short-Term Outlook - **New Drug Launches**: Hengrui has the highest number of new drug launches expected from 2023 to 2025, with a fast ramp-up anticipated in 2026, presenting potential upside surprises [1][2] - **Business Development (BD) Transactions**: An unspecified BD transaction in 2026 could also bring upside surprises [1][2] - **Clinical Trials**: 2026 will see readouts and potential global trials for various candidates, including LP(a) and PDE3/4 [1][2] Long-Term Strategy - **Pipeline Depth**: Hengrui boasts the deepest and widest pipeline globally, covering almost all modality platforms, which increases the chances of commercialization and BD collaborations [1][2] - **Combination Trials**: The sizable pipeline allows for multiple combination trials and a comprehensive strategy across different therapeutic areas (TAs) [1][2] - **Healthcare Reform Benefits**: Hengrui is positioned to benefit from ongoing healthcare expense reforms and the expansion of commercial insurance [1][2] - **Global Commercialization Platform**: The company is building a proprietary global commercialization platform with high potential [1][2] Financial Performance - **Earnings Summary**: - 2023 Net Profit: Rmb 4,302 million, EPS: Rmb 0.674, P/E: 102.0 - 2024 Net Profit: Rmb 6,337 million, EPS: Rmb 0.993, P/E: 69.3 - 2025E Net Profit: Rmb 9,066 million, EPS: Rmb 1.366, P/E: 50.4 - 2026E Net Profit: Rmb 9,927 million, EPS: Rmb 1.496, P/E: 46.0 - 2027E Net Profit: Rmb 11,361 million, EPS: Rmb 1.712, P/E: 40.2 [6][9] Market Position - **Innovative Therapeutic Sector**: Hengrui is the largest innovative pharma company in China's therapeutic sector, which is a pillar industry in China's 15th 5-year plan [3][18] - **Market Growth Potential**: The sector is expected to benefit significantly from supportive pricing and accelerated approvals, potentially quadrupling the innovative drug market in China [3][18] Investment Strategy - **Recommendation**: Hengrui is rated as a "Buy" with a target price of HK$134.00, indicating an expected share price return of 74.6% [4][19] - **Valuation Methodology**: A discounted cash flow (DCF) approach is used for valuation, with a terminal growth rate of 4% and a WACC of 8.3% [20] Risks - **Downside Risks**: Potential risks include R&D/clinical failures, pricing pressures from tenders, slower product launches, competition, and regulatory issues affecting overseas sales [22][23] Additional Insights - **Out-Licensing Transactions**: Hengrui has executed 14 out-licensing transactions with a total deal value of approximately US$14 billion, with potential future out-licensing molecules estimated to reach US$32 billion from 2023 to 2027E [19][12] - **Sales Growth Projection**: Projected drug sales growth of 22% from 2024 to 2027E, driven by innovative drugs [19][12] This summary encapsulates the key insights and financial metrics discussed in the conference call regarding Jiangsu Hengrui Pharmaceuticals, highlighting its strategic positioning, financial performance, and market outlook.

Core Viewpoint - Jiangsu Hengrui Medicine Co., Ltd. is recognized as a leading player in China's biopharmaceutical industry, transitioning from generic drugs to innovative drugs, with its strategic movements indicating the development direction of the entire Chinese pharmaceutical industry [1] Group 1: Strategic Overview - Hengrui has undergone a painful transformation over the past five years, successfully navigating the challenges posed by the National Drug Centralized Procurement (VBP), with 2023 revenue reaching 22.82 billion yuan, a year-on-year increase of 7.26%, and net profit of 4.30 billion yuan, up 10.14% [2] - The company is expected to accelerate growth in 2024 and 2025, with projected revenue of 27.99 billion yuan in 2024, a significant year-on-year increase of 22.63%, and innovative drug revenue surpassing 60% by mid-2025 [2] Group 2: Investment Logic Reconstruction - The core investment logic for Hengrui is restructured around four dimensions: the clearance of existing risks and realization of innovation, global competitiveness of the ADC platform, explosive potential of chronic disease pipelines, and iterative internationalization models [4] - The ADC pipeline, led by SHR-A1811, has established a competitive edge against imported drugs and validated its underlying technology platform (HRMAP) through extensive external licensing [4] Group 3: Financial Deep Dive - Hengrui's financial reports show a clear V-shaped recovery trend, with 2023 revenue of 22.82 billion yuan and innovative drug revenue reaching 10.64 billion yuan, a year-on-year increase of 22.1% [6] - By 2025, the company anticipates revenue of 33.65 billion yuan, with net profit projected between 6 to 7 billion yuan, reflecting a growth rate of approximately 29% [6] - Operating cash flow surged by 504.12% to 7.644 billion yuan in 2023, indicating strong cash generation capabilities [10] Group 4: Oncology Pipeline Insights - Hengrui's oncology pipeline has shifted from a "Me-too/Me-better" strategy to a "Best-in-Class" and "First-in-Class" approach, with the ADC platform becoming a new cornerstone [12] - SHR-A1811 is positioned as a strategic asset, directly competing with DS-8201, and has received breakthrough therapy designations for multiple indications [14] Group 5: Non-Oncology Growth Areas - Hengrui's deep layout in non-oncology fields serves as a stabilizer for its performance and a second growth curve, particularly in metabolic diseases, cardiovascular, and autoimmune areas [23] - The company is actively participating in the GLP-1 market, with HRS9531 showing potential for superior efficacy in weight loss and diabetes management [24] Group 6: Globalization Strategy 2.0 - Hengrui's internationalization strategy has evolved from simple export to a more integrated approach involving NewCo and licensing-out models, allowing for risk isolation and capital leverage [33] - The NewCo model enables Hengrui to finance high-risk clinical developments through partnerships with top-tier venture capital, mitigating cash flow strain [34] Group 7: Policy Environment and Market Access - The impact of the VBP has diminished, with Hengrui's main generic products now serving as cash cows to support innovative drug development [41] - Successful negotiations in the National Reimbursement Drug List (NRDL) for innovative drugs are expected to catalyze growth, despite average price reductions of around 60% [42]

Core Insights - The article highlights the top and bottom AH share premium rates as of January 14, with Northeast Electric (00042) leading at a premium rate of 785.25% and Ningde Times (03750) at the bottom with -12.40% [1][2]. Premium Rate Rankings - The top three AH shares by premium rate are: - Northeast Electric (00042) with a premium rate of 785.25% and a deviation value of -83.55% [2]. - Zhejiang Shibao (01057) with a premium rate of 462.65% and a deviation value of 109.56% [2]. - Junda Co., Ltd. (02865) with a premium rate of 315.07% and a deviation value of 103.82% [2]. - The bottom three AH shares by premium rate are: - Ningde Times (03750) with a premium rate of -12.40% and a deviation value of -1.93% [2]. - Heng Rui Medicine (01276) with a premium rate of -3.68% and a deviation value of -4.76% [2]. - China Merchants Bank (03968) with a premium rate of 1.84% and a deviation value of 3.83% [2]. Deviation Value Rankings - The top three AH shares by deviation value are: - Goldwind Technology (02208) with a deviation value of 110.02% [3]. - Zhejiang Shibao (01057) with a deviation value of 109.56% [3]. - Junda Co., Ltd. (02865) with a deviation value of 103.82% [3]. - The bottom three AH shares by deviation value are: - Northeast Electric (00042) with a deviation value of -83.55% [3]. - Morning Paper Industry (01812) with a deviation value of -36.42% [3]. - Nanhua Futures Co., Ltd. (02691) with a deviation value of -26.10% [3].

Core Insights - The article highlights the top and bottom AH premium rates for various stocks, indicating significant discrepancies between H-shares and A-shares [1][2]. Group 1: Top AH Premium Rates - Northeast Electric (00042) leads with a premium rate of 800.00%, followed by Zhejiang Shibao (01057) at 448.68% and Nanjing Panda Electronics (00553) at 279.68% [1]. - The top three stocks with the highest deviation values are Goldwind Technology (02208) at 130.60%, Zhejiang Shibao (01057) at 101.85%, and Nanjing Panda Electronics (00553) at 66.83% [1][2]. Group 2: Bottom AH Premium Rates - The stocks with the lowest AH premium rates include Ningde Times (03750) at -12.21%, China Merchants Bank (03968) at -2.14%, and Hengrui Medicine (01276) at -1.80% [1]. - The bottom three stocks with the highest negative deviation values are Northeast Electric (00042) at -72.14%, Chenming Paper (01812) at -36.62%, and Nanhua Futures (02691) at -22.53% [1][3]. Group 3: Additional Insights on Premium and Deviation - The article provides a detailed table of the top ten and bottom ten AH stocks based on premium rates and deviation values, showcasing the significant differences in market valuation between H-shares and A-shares [1][2][3].

Core Viewpoint - Heng Rui Medicine's subsidiary, Suzhou Shengdiya Biopharmaceutical Co., Ltd., has had its injectable SHR-1826 included in the list of breakthrough therapies by the National Medical Products Administration [1] Group 1: Product Information - SHR-1826 is an antibody-drug conjugate targeting c-Met, designed to specifically bind to tumor cell surface antigens and induce cell death upon internalization [1] - A similar product, ABBV-399 (generic name: telisotuzumab vedotin), received accelerated approval from the FDA in May 2025 for treating adult patients with advanced/metastatic non-squamous non-small cell lung cancer who have previously undergone systemic therapy and exhibit high expression of c-Met protein [1] Group 2: Financial Investment - The cumulative research and development investment related to SHR-1826 has reached approximately 125.5 million yuan [1]

Core Viewpoint - The company, Jiangsu Hengrui Medicine Co., Ltd., has received approval from the National Medical Products Administration for clinical trials of HRS-7535, a novel oral small molecule GLP-1 receptor agonist aimed at treating type 2 diabetes and weight loss [1] Group 1: Product Development - HRS-7535 is designed to activate GLP-1 receptors, promoting insulin secretion from the pancreas, reducing glucagon secretion, and suppressing gastric emptying [1] - The drug also enhances satiety and suppresses appetite through central mechanisms, leading to reduced energy intake [1] - There are currently no oral small molecule GLP-1 receptor agonists available in the global market [1] Group 2: Financial Investment - The cumulative research and development investment for HRS-7535 has reached approximately 369.4 million yuan [1]

Group 1 - Core viewpoint: Jiangsu Hengrui Medicine Co., Ltd.'s subsidiary, Suzhou Hengrui Medicine Co., Ltd., has had its injectable SHR-1826 included in the list of breakthrough therapeutic varieties by the National Medical Products Administration [1] - Drug name: Injectable SHR-1826, with acceptance number CXSL2300466, classified as a Class 1 therapeutic biological product [1] - Proposed indication: Monotherapy for locally advanced or metastatic non-squamous non-small cell lung cancer with c-Met overexpression (2-3+, ≥50%) in patients who have failed at least one line of systemic treatment [1] Group 2 - Application date: December 1, 2025, for the registration of SHR-1826 [1] - Reason for inclusion: The application meets the requirements of the "Drug Registration Management Measures" and the announcement regarding the "Breakthrough Therapeutic Drug Review Procedures" [1]