Core Viewpoint - Terumo, a Japanese medical device manufacturer, is acquiring a German factory from WuXi Biologics for €150 million, aiming to establish its first overseas CDMO base and target large pharmaceutical orders in Europe by 2030 [1]. Group 1: Acquisition Details - The acquisition amount is €150 million, and the factory covers an area of 13,000 square meters [1]. - Approximately 150 employees will transition to Terumo following the acquisition [1]. - The factory is expected to produce pre-filled syringes, although the production capacity has not been disclosed [1]. Group 2: Strategic Goals - Terumo aims to leverage the German factory as a foothold for expanding its overseas operations, particularly targeting major pharmaceutical companies headquartered in Europe, such as Roche and Novartis [1]. - The company is actively developing its CDMO business to provide integrated solutions for drug-compatible containers and delivery devices [1]. - Terumo plans to enhance the production capacity of its Kofu factory in Yamanashi Prefecture within the fiscal year ending March 2025 [1]. Group 3: Market Position - Currently, Terumo's primary clients are domestic pharmaceutical companies in Japan, but it has secured its first overseas order in 2024 [1].

截至2025年5月13日 09:39，恒生医疗保健指数(HSHCI)强势上涨1.38%，成分股百济神州(06160)上涨5.16%，医脉通(02192)上涨5.15%，乐普生物-B(02157)上 涨4.67%，信达生物(01801)，翰森制药(03692)等个股跟涨。恒生医疗ETF(513060)上涨1.72%，最新价报0.47元。流动性方面，恒生医疗ETF盘中换手 3.08%，成交3.05亿元。拉长时间看，截至5月12日，恒生医疗ETF近1月日均成交13.50亿元，排名可比基金第一。 德邦证券指出，AI的发展带动AI医疗的全面普及，大量医疗企业接入DS、华为等AI模型，开始摸索AI在医疗的应用。我们认为，1）拥有大量底层病人数据 的企业将有很大应用落地空间，2）拥有医保数据的企业有望深入应用AI，3）AI制药继续升级，建议关注此类公司。此外，积极关注1）创新药及其产业链 的技术革新与BD潜力；2）有业绩，基本面出现拐点的企业。 西南证券表示，2025年2月，国产大模型DeepSeek-R1全面开源与多领域适配，AI医疗迈入技术融合与行业重构的新阶段，DeepSeek的多模型协同能力成为 行业新范式。这种" ...

Core Viewpoint - The recent policy announced by Trump to align U.S. drug prices with the lowest global prices could lead to a significant decrease in prescription drug prices in the U.S., potentially by 30% to 80%, raising concerns among pharmaceutical companies, especially those exporting to the U.S. [1][2] Group 1: Market Performance - As of May 13, 2025, the CSI Hong Kong Stock Connect Pharmaceutical and Healthcare Composite Index (930965) rose by 2.42%, with notable increases in stocks such as BeiGene (06160) up 4.15% and Innovent Biologics (01801) up 3.14% [1] - The Hong Kong Pharmaceutical ETF (159718) opened high and increased by 2.04%, with a latest price of 0.70 yuan, and a one-month cumulative increase of 3.32% [1] - The CSI Pharmaceutical and Medical Device Innovation Index (931484) increased by 0.87%, with stocks like East China Pharmaceutical (000963) rising by 2.23% [4] Group 2: Trading Volume and Liquidity - The Hong Kong Pharmaceutical ETF had a turnover of 1.72% during the trading session, with a transaction volume of 4.0999 million yuan, and an average daily transaction volume of 95.7602 million yuan over the past month [1] - The latest scale of the Medical Innovation ETF (516820) reached 1.588 billion yuan [4] Group 3: Index Composition - The top ten weighted stocks in the CSI Hong Kong Stock Connect Pharmaceutical and Healthcare Composite Index accounted for 60.54% of the index, including BeiGene (06160) and WuXi Biologics (02269) [5] - The top ten weighted stocks in the CSI Pharmaceutical and Medical Device Innovation Index represented 66.51% of the index, featuring companies like Hengrui Medicine (600276) and WuXi AppTec (603259) [8]

Investment Rating - The report maintains a positive investment rating for the healthcare sector, particularly focusing on specific companies and segments within the industry [3]. Core Insights - The report emphasizes the recovery of medical device tenders and highlights investment opportunities in segments such as blood dialysis and ultrasound, with a focus on domestic replacements [1][2]. - It suggests that leading companies in the chain pharmacy sector are likely to increase market share due to the exit of smaller players [1]. - The report identifies several key areas for investment, including innovative drugs, CXO services, traditional Chinese medicine, vaccines, and medical devices, among others [1]. Summary by Sections 1. CXO Sector - The CXO sector is expected to see valuation recovery due to supportive innovation policies and a reduction in geopolitical risks [7]. 2. Innovative Drugs - The report notes a slight increase in the A-share chemical preparation sector and highlights recent approvals for innovative drugs, suggesting a focus on ongoing R&D progress [12][67]. 3. Traditional Chinese Medicine - The performance of the traditional Chinese medicine sector has lagged behind broader market indices, indicating potential for future growth [20]. 4. Blood Products - The report highlights the strong pricing power of manufacturers in the blood products sector, driven by increased demand for immunoglobulin products [22]. 5. Vaccine Sector - The vaccine sector is facing challenges due to low birth rates, but there are opportunities in specific areas such as HPV vaccines [26]. 6. Upstream Pharmaceutical Supply Chain - The report suggests focusing on companies with strong brand recognition and overseas growth potential in the chemical and biological reagent sectors [28]. 7. IVD Sector - The IVD sector is expected to benefit from the implementation of centralized procurement policies, which may accelerate domestic replacements [31]. 8. Medical Devices - The report recommends attention to the domestic continuous glucose monitoring (CGM) market, particularly in relation to GLP-1 drugs [37]. 9. Medical Services - The report suggests focusing on eye and dental medical service companies, anticipating a boost from consumer stimulus policies [42]. 10. Offline Pharmacies - The report indicates that leading pharmacy chains are stabilizing, with a recommendation to focus on companies with strong supply chain capabilities [45]. 11. Raw Materials - The report emphasizes the importance of quality and cost management in the raw materials sector, suggesting a focus on companies with strong product capabilities [48]. 12. Innovative Instruments - The report highlights the potential for AI applications in the medical device sector, particularly in surgical navigation and pathology screening [51]. 13. Instrument Equipment - The report notes that the scientific instrument sector is expected to recover as demand improves and more domestic support policies are introduced [56]. 14. Low-value Consumables - The report suggests that the low-value consumables sector may see investment opportunities as the industry cycle improves [59].

Core Viewpoint - The CSI Hong Kong Stock Connect Medical Theme Index has shown significant growth, with a 14.60% increase over the past month and a 17.07% increase year-to-date, reflecting strong performance in the medical sector within the Hong Kong stock market [1][2]. Group 1: Index Performance - The CSI Hong Kong Stock Connect Medical Theme Index rose by 0.59% to 787.2 points, with a trading volume of 16.351 billion yuan [1]. - The index has increased by 10.23% over the past three months [1]. Group 2: Index Composition - The index comprises 50 listed companies involved in medical devices, medical services, pharmaceuticals, and biotechnology [1]. - The top ten weighted stocks in the index include WuXi Biologics (16.41%), JD Health (10.86%), and Alibaba Health (7.38%) [1]. Group 3: Sector Allocation - The sector allocation of the index shows that medical services and commercial services account for 34.97%, while pharmaceuticals and biotechnology services account for 31.72% [2]. - Medical devices represent 12.28%, chemical drugs 10.50%, biological drugs 10.12%, and traditional Chinese medicine 0.42% of the index [2]. Group 4: Index Adjustment Mechanism - The index samples are adjusted biannually, with changes implemented on the next trading day following the second Friday of June and December [2]. - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2].

Group 1 - The core index, the China Securities Hong Kong 300 Mainland High Beta Index (H300CNHB), reported a value of 898.38 points, with a one-month increase of 7.01%, a three-month increase of 1.94%, and a year-to-date increase of 6.72% [1][2] - The index reflects the overall performance of securities listed on the Hong Kong Stock Exchange from various strategic investment perspectives, with a base date of December 30, 2005, set at 1000.0 points [1][2] - The top ten holdings of the index include MicroPort Scientific Corporation-B (5.17%), Hua Hong Semiconductor (2.95%), Alibaba Health (2.72%), XPeng Inc.-W (2.7%), Guotai Junan Securities (2.55%), WuXi Biologics (2.53%), Country Garden Services (2.51%), Kingdee International Software Group (2.43%), China Jinmao Holdings Group (2.37%), and GDS Holdings Limited-SW (2.31%) [1][2] Group 2 - The index's holdings are entirely composed of securities from the Hong Kong Stock Exchange, with the real estate sector accounting for 21.70%, financials for 20.95%, healthcare for 18.32%, consumer discretionary for 16.93%, information technology for 10.92%, communication services for 4.34%, materials for 2.93%, consumer staples for 2.01%, and industrials for 1.89% [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year, and weight factors are generally fixed until the next scheduled adjustment [2]

Summary of the Conference Call Industry Focus - The report focuses on the pharmaceutical industry, specifically highlighting innovative drugs and contract research organizations (CXO) Core Insights and Arguments - Continuous recommendation of innovative drugs with positive growth outlook, including: - 恒瑞医药 (Hengrui Medicine) - 华东医药 (East China Pharmaceutical) - 翰森制药 (Hansoh Pharmaceutical) - 贝达药业 (Betta Pharmaceuticals) - 信立泰 (Sinopharm) - 科伦药业 (Kelun Pharmaceutical) - 百利天恒 (Baili Tianheng) - 荣昌生物 (Rongchang Biopharmaceutical) - 科伦博泰生物 (Kelun Biotech) - 石药集团 (Shijiazhuang Pharmaceutical Group) [1][1][1] - Recommendation of CXOs showing signs of profit growth turning points, including: - 药明生物 (WuXi Biologics) - 药明康德 (WuXi AppTec) [1][1] - Positive outlook on domestic replacement of innovative medical devices, specifically: - 惠泰医疗 (Huitai Medical) [1] - Anticipation of recovery in consumer healthcare, particularly: - 爱尔眼科 (Aier Eye Hospital) [1] Other Important Points - The report emphasizes the ongoing trend of recommending companies that are positioned well within the pharmaceutical sector, particularly those that are expected to benefit from market dynamics and growth opportunities - The focus on innovative drugs and CXOs indicates a strategic approach to capitalize on emerging trends in the healthcare market - The mention of domestic replacements in medical devices suggests a shift towards local production and innovation, which could impact market competition and supply chains - The recovery in consumer healthcare points to potential growth areas as the market stabilizes post-pandemic

Group 1 - The core viewpoint of the article highlights the performance of the CSI Hong Kong-Shanghai Biotech Theme Index, which opened high and is currently at 1195.47 points, reflecting a recent decline of 2.95% over the past month but an increase of 13.55% over the last three months and 13.14% year-to-date [1][2] - The index comprises 50 listed companies involved in biopharmaceuticals, pharmaceuticals, and biotech services from the mainland and Hong Kong markets, serving as a benchmark for the overall performance of biotech-themed securities [1][2] - The top ten weighted companies in the index include: Hengrui Medicine (13.31%), BeiGene (10.94%), WuXi AppTec (8.63%), Mindray Medical (7.77%), WuXi Biologics (5.11%), Innovent Biologics (4.73%), CanSino Biologics (3.38%), CSPC Pharmaceutical Group (2.73%), China National Pharmaceutical Group (2.41%), and Shanghai RAAS Blood Products (1.82%) [1][2] Group 2 - The index's holdings are distributed across different market exchanges, with the Hong Kong Stock Exchange accounting for 41.35%, Shanghai Stock Exchange for 36.05%, and Shenzhen Stock Exchange for 22.61% [1][2] - In terms of industry composition, biopharmaceuticals represent 42.86%, chemical drugs 25.82%, pharmaceutical and biotech services 21.73%, and medical devices 9.59% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day following the second Friday of June and December each year, ensuring that the weight factors are updated accordingly [2]

Market Overview - The Hong Kong stock market experienced a collective rise during the holiday, with the Hang Seng Index increasing by 1.74%, the Hang Seng China Enterprises Index rising by 1.92%, and the Hang Seng Tech Index climbing by 3.08% [1][2]. Technology Sector - Tech stocks saw significant gains, with Xiaomi Group rising over 6%, Alibaba and JD.com increasing by over 3%, and Tencent up by over 2% [2]. - Notable individual performances included Tencent Holdings at 487.80 HKD (+2.22%), Alibaba at 122.00 HKD (+3.83%), and Xiaomi at 53.10 HKD (+6.31%) [3]. Robotics and AI - Robotics stocks surged, with Horizon Robotics increasing by over 14%, and other companies like Shengye and Jinli Permanent Magnet rising by over 11% and 5%, respectively [4][5]. Healthcare and Biotech - The healthcare outsourcing sector was active, with Kanglong Chemical and WuXi AppTec both rising over 7%, and WuXi Biologics increasing by over 5% [6]. New Energy Vehicles - New energy vehicle companies saw substantial increases, with Leap Motor rising over 7%, Xiaopeng Motors and Xiaomi both up over 6%, and Li Auto and BYD increasing by over 3% [7]. Consumer Goods - Beer stocks performed well, with Hong Kong San Miguel rising over 4%, and Qingdao Beer and Budweiser APAC both increasing by over 2% [8]. - Home appliance stocks also strengthened, with Quan Feng Holdings rising over 7%, and Hisense and Techtronic Industries increasing by over 4% [9]. Gambling Sector - The gambling sector saw broad gains, with Galaxy Entertainment and MGM China both rising over 2% [10]. Restaurant Sector - The restaurant sector faced declines, with Yum China dropping over 7% and other companies like Chaogao and Cafe de Coral decreasing by over 1% [11]. Local Consumption - Local consumption stocks weakened, with Chao Yue Holdings falling over 6% and Chow Tai Fook down over 1% [13]. Stock Performance - Hong Kong Exchanges saw a peak increase of 3.46% during trading, reaching 352.6 HKD, marking a new high since early April [13]. - Standard Chartered Group's stock initially rose over 4% post-earnings but closed up only 0.71% at 113.6 HKD, with a total market value of 269.225 billion HKD [15]. Future Outlook - Huatai Securities noted that the market has largely priced in the impact of tariffs on earnings expectations, with a 1.5% downward adjustment in profit expectations for core offshore Chinese stocks [17].

Core Viewpoint - WuXi Biologics demonstrates a strong commitment to sustainability through its 2024 Sustainability Report, highlighting significant advancements in sustainable development and corporate governance [1][3][15] Group 1: Sustainability Commitment - The company has successfully executed its "Follow and Win the Molecule" strategies while achieving notable sustainability milestones in 2024 [2] - WuXi Biologics has achieved a 30% intensity reduction in GHG emissions and a 28% reduction in water consumption compared to baseline years [7] - The Green CRDMO solution offers up to an 80% reduction in product carbon footprint, recognized by the United Nations Global Compact [9] Group 2: Governance and Stakeholder Engagement - The company has established strong corporate governance mechanisms aligned with the United Nations Sustainable Development Goals (UN SDGs) [3][4] - WuXi Biologics actively engages with stakeholders and participates in the Pharmaceutical Supply Chain Initiative (PSCI) to uphold principles in ethics, human rights, and environmental management [4] Group 3: Community and Employee Empowerment - The company supports career development for women in STEM, with 54% of STEM positions held by female employees, surpassing industry averages [5] - In 2024, nearly 10,000 employee volunteer hours were logged in local communities, emphasizing the company's commitment to social responsibility [6] Group 4: Recognition and Future Outlook - WuXi Biologics has received multiple accolades, including an MSCI AAA Rating and inclusion in the Dow Jones Sustainability Indices, reflecting its leadership in ESG [11] - Looking ahead, the company plans to continue prioritizing sustainability as a cornerstone of its innovation and operations, contributing to the UN Sustainable Development Goals [12]