Core Insights - The Hang Seng Index fell by 1.09% on July 25, with southbound trading totaling HKD 148.55 billion, including HKD 84.37 billion in buying and HKD 64.18 billion in selling, resulting in a net buying amount of HKD 20.18 billion [1] Trading Activity - The most active stock in southbound trading was the Tracker Fund of Hong Kong (盈富基金), with a total trading amount of HKD 73.58 billion and a net buying amount of HKD 72.80 billion, despite a closing price drop of 1.07% [1][2] - Other notable stocks included SMIC (中芯国际) with a trading amount of HKD 64.69 billion and a net buying of HKD 7.82 billion, and Alibaba (阿里巴巴-W) with a trading amount of HKD 45.97 billion and a net buying of HKD 8.24 million [2] Net Buying and Selling - A total of 9 stocks experienced net buying, with the Tracker Fund of Hong Kong leading at HKD 72.80 billion, followed by the Hang Seng China Enterprises Index (恒生中国企业) with HKD 14.35 billion and China Life (中国人寿) with HKD 9.55 billion [1] - The stock with the highest net selling was Kuaishou (快手-W), with a net selling amount of HKD 6.67 billion and a closing price drop of 4.86% [1][2]

Core Insights - On July 25, 2025, the top three companies by trading volume in the southbound Shanghai-Hong Kong Stock Connect were Yingfu Fund (02800), SMIC (00981), and Alibaba-W (09988) with trading volumes of 4.937 billion, 4.080 billion, and 2.625 billion respectively [1] - The same companies also led the trading volume in the southbound Shenzhen-Hong Kong Stock Connect, with volumes of 2.422 billion, 2.389 billion, and 1.971 billion respectively [1] Southbound Shanghai-Hong Kong Stock Connect - The top active trading companies included: - Yingfu Fund (02800) with a trading amount of 4.937 billion and a net buying amount of 4.902 billion [2] - SMIC (00981) with a trading amount of 4.080 billion and a net buying amount of 0.444 billion [2] - Alibaba-W (09988) with a trading amount of 2.625 billion and a net buying amount of 0.139 billion [2] - Other notable companies included Tencent Holdings (00700) with 2.247 billion and a net buying amount of 0.248 billion, and Xiaomi Group-W (01810) with 2.200 billion and a net buying amount of 0.547 billion [2] Southbound Shenzhen-Hong Kong Stock Connect - The top active trading companies included: - Yingfu Fund (02800) with a trading amount of 2.422 billion and a net buying amount of 2.378 billion [2] - SMIC (00981) with a trading amount of 2.389 billion and a net buying amount of 0.338 billion [2] - Alibaba-W (09988) with a trading amount of 1.971 billion and a net selling amount of 0.568 billion [2] - Other notable companies included Tencent Holdings (00700) with 1.830 billion and a net selling amount of 0.128 billion, and Meituan-W (03690) with 1.631 billion and a net buying amount of 0.206 billion [2]

Group 1 - The Hong Kong stock market saw a net inflow of 201.84 billion HKD from Northbound trading on July 25, with 114.74 billion HKD from Shanghai and 87.1 billion HKD from Shenzhen [1] - The most bought stocks included the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises (02828), and China Life (02628), while Guotai Junan International (01788) was the most sold stock [1][9] Group 2 - The Tracker Fund of Hong Kong (02800) received a net inflow of 49.19 billion HKD, while China Life (02628) saw a net inflow of 9.54 billion HKD, attributed to its perceived value as a substitute for Chinese interest rates [6][7] - Semiconductor company SMIC (00981) had a net inflow of 7.81 billion HKD, driven by optimistic growth projections in the global semiconductor market [7] - Meituan (03690), Tencent (00700), and Alibaba (09988) also experienced net inflows of 3.3 billion HKD, 1.19 billion HKD, and 823.6 million HKD respectively, as market expectations for their upcoming earnings reports remain high [7] Group 3 - Three-Six Bio (01530) received a net inflow of 3.15 billion HKD following the establishment of a licensing agreement with Pfizer for a dual-specific antibody [8] - Xiaomi Group (01810) attracted a net inflow of 7.7 billion HKD, while Guotai Junan International (01788) faced a net outflow of 1.16 billion HKD [9]

Investment Rating - The report maintains a rating of "Buy" for the company [9]. Core Insights - The report highlights the potential of SSGJ-707 in the global market, emphasizing its promising clinical data and the strategic partnership with Pfizer, which is expected to enhance its market presence [2][3]. Summary by Sections 1. PD(L)1*VEGF Dual Antibodies as New SOC - PD(L)1 monoclonal antibodies have become the standard treatment for various cancers, with a projected market size of $100 billion by 2029. The PD(L)1*VEGF dual antibodies are expected to replace PD(L)1 monoclonal antibodies in many indications, potentially covering a market exceeding $200 billion [13][19]. 2. SSGJ-707's BIC Potential - SSGJ-707, a PD1*VEGF dual antibody developed by the company, has shown superior efficacy in early clinical trials compared to competitors. It is currently in Phase II trials for various cancers, including NSCLC and CRC, and is expected to enter Phase III trials soon [25][29]. 3. Global Market Entry via Pfizer - The partnership with Pfizer, which includes a record upfront payment of $1.25 billion and milestone payments totaling $4.8 billion, positions SSGJ-707 for significant market penetration. Pfizer's established oncology business is expected to leverage SSGJ-707 to expand its treatment offerings [32][35]. 4. Financial Projections - The company forecasts revenues of RMB 191.78 billion, RMB 118.95 billion, and RMB 140.51 billion for 2025, 2026, and 2027, respectively. Net profits are projected to be RMB 102.14 billion, RMB 28.08 billion, and RMB 35.08 billion for the same years [9][10]. 5. Clinical Development Pipeline - The company plans to launch 13 new drug assets between 2025 and 2027, enhancing its portfolio in hematology, immunology, nephrology, and dermatology. This expansion is expected to contribute significantly to revenue growth [9][10]. 6. Competitive Landscape - The report discusses the competitive advantages of SSGJ-707, including its superior binding affinity and efficacy in clinical trials compared to other PD(L)1*VEGF dual antibodies, which positions it favorably in the oncology market [25][29]. 7. Market Potential and Patient Coverage - The dual antibody is anticipated to cover over 1.4 million patients in previously unaddressed indications, significantly expanding its market potential [21][24]. 8. Strategic Collaborations - The collaboration with Pfizer is expected to facilitate rapid clinical development and market access for SSGJ-707, particularly in indications where Pfizer has existing assets [44]. 9. Valuation and Target Price - The report utilizes a DCF valuation method to raise the target price to HKD 46.71, reflecting the company's growth potential in the PD(L)1*VEGF market [9].

Group 1 - The core index, the CESHKB, increased by 3.44% to 9134.3 points with a trading volume of 16.624 billion [1] - The CESHKB has seen significant growth, rising 21.08% in the past month, 48.89% in the last three months, and 97.07% year-to-date [1] - The index is compiled by China Securities Index Co., Ltd. under the commission of China Securities Trading Service Co., Ltd., reflecting the overall performance of biotechnology companies listed in Hong Kong [1] Group 2 - The top ten weighted stocks in the CESHKB include: Kangfang Biotech (13.95%), Innovent Biologics (9.39%), WuXi Biologics (9.1%), 3SBio (8.92%), BeiGene (8.74%), WuXi AppTec (5.72%), Zai Lab (5.05%), Kelun-Biotech (4.83%), Genscript Biotech (4.28%), and Nuo Cheng Jian Hua-B (4.11%) [1] - The CESHKB is exclusively composed of stocks from the Hong Kong Stock Exchange, with 100% representation [2] - The index's holdings are entirely within the healthcare sector, specifically focusing on pharmaceuticals and biotechnology [2]

Core Insights - The innovative drug sector has seen significant growth this year, with the innovative drug index achieving a cumulative increase of 73.62% year-to-date, and over a quarter of its constituent stocks doubling in price [2][5] - Despite strong performance, there is a notable divergence in fund flows, with some high-performing funds experiencing substantial increases in scale while others face significant reductions [3][4] Fund Performance - Over 98% of pharmaceutical-related theme funds have reported gains this year, with 72 products seeing increases exceeding 50%. Notable performers include Changcheng Pharmaceutical Industry Select Mixed Fund A, which has achieved a return of 116.12% [1][2] - Conversely, some funds have reported negative returns, such as Taikang Medical Health Stock Fund A, which has a year-to-date return of -3.41% [2][3] Fund Flow Dynamics - There has been a significant inflow of funds into certain high-performing products, with some funds experiencing scale increases of over 30 times in a single quarter. For instance, Changcheng Pharmaceutical Industry Select Mixed Fund A's scale surged from 0.36 million to 11.32 million [3][4] - However, more than 30% of funds with returns exceeding 30% have seen a decrease in scale, indicating a complex investor sentiment [3][6] Investor Behavior - Investor behavior reflects a cautious approach, with some choosing to "take profits" amid concerns over short-term volatility. This has led to a significant outflow of over 6.7 billion from related pharmaceutical theme products in the past month [5][6] - Fund managers suggest that the current market adjustment may present a good opportunity for long-term investment in the innovative drug sector, which is believed to be undergoing a significant transformation [6][7] Market Outlook - The innovative drug sector is expected to continue attracting attention, with fund managers focusing on clinical data, overseas licensing, and domestic sales growth as key areas for investment [7]

Group 1 - Morgan Stanley's fund manager Wang Dapeng expresses optimism about the pharmaceutical industry, highlighting its potential for innovation, manufacturing, and consumption upgrades [1][3] - The second quarter report shows a strong performance in the equity market, with a focus on A-share and Hong Kong stock innovative drugs, benefiting from better-than-expected business development in representative innovative drug companies [2][3] - The top ten holdings of the fund as of June 30, 2025, include companies like Innovent Biologics and BeiGene, accounting for 79.90% of the fund's net asset value, an increase of over 11 percentage points from the previous quarter [2] Group 2 - The pharmaceutical sector is expected to benefit from a stable growth trend in medical insurance and supportive policies for innovative drug payments, leading to a return to endogenous growth [3] - Policy support includes increased pensions and healthcare subsidies, as well as ongoing normalization of centralized procurement and industry restructuring, which are expected to favor the development of innovative drugs [3] - Long-term growth in the pharmaceutical industry is anticipated due to factors such as an aging population, rising income levels, and increased health awareness, with expected growth rates surpassing GDP growth [3]

Core Viewpoint - The company, 3SBio Inc., announced a financing plan through a general mandate by issuing new shares to Pfizer, raising approximately HKD 790 million, netting around HKD 790 million after expenses [1] Group 1: Financing Details - The company issued 31,142,500 shares (approximately 0.3 million shares) at a subscription price of HKD 25.21, representing a discount of about 17.1% compared to the previous trading day's closing price of HKD 30.40 [1] - The shares offered represent about 1.3% of the existing issued share capital and will also account for approximately 1.3% of the enlarged share capital upon completion [1] Group 2: Use of Proceeds - Approximately HKD 630 million of the raised funds will be allocated to enhance the global research and development pipeline for clinical and preclinical projects, as well as to improve production facilities [1] - About HKD 160 million will be used for other general corporate purposes [1] Group 3: Conditions for Completion - The completion of this issuance is subject to the fulfillment of conditions under the subscription agreement or any applicable waivers [1]

金十数据7月24日讯，辉瑞公司宣布与三生制药完成了一项除中国以外（保留在中国独家开发和商业化 权力的选择权）的全球独家授权协议，辉瑞获得了三生制药SSGJ-707——一项基于其专有CLF2平台开 发的靶向PD-1和VEGF双特异性抗体的开发、生产和商业化独家权利。该协议进一步强化了辉瑞的肿瘤 产品线。 辉瑞：与三生制药完成授权协议，获创新癌症免疫疗法独家授权 ...

Group 1 - The core agreement between the company and Pfizer regarding the PD-1/VEGF bispecific antibody (SSGJ-707) has been established, with the license agreement effective from July 24, 2025 [1] - The company will receive a total of up to $150 million in non-refundable and non-offsettable option and exercise fees under the option agreement with Pfizer [1] - Pfizer has conditionally agreed to subscribe for 31.14 million shares at a price of HKD 25.2055 per share, totaling approximately HKD 785.0 million, which represents about 1.30% of the existing issued share capital [1] Group 2 - The net proceeds from the subscription will be approximately HKD 785.0 million, with around HKD 628.0 million (80% of the net proceeds) allocated for global research and development of clinical and preclinical projects, and improving production facilities [2] - Approximately HKD 157.0 million (20% of the net proceeds) will be used for other general corporate purposes [2] - The subscription is seen as an opportunity to raise additional funds and enhance the company's shareholder base with Pfizer as a strategic investor, supporting business growth and pipeline development [2]