Core Viewpoint - The recent announcement by President Trump regarding potential high tariffs on copper and pharmaceuticals has led to a decline in Hong Kong's stock market, with the Hang Seng Index falling below 24,000 points, reflecting increased macroeconomic risks and impacting market sentiment [1][4]. Market Performance - The Hang Seng Index closed down 1.06% at 23,892.32 points, with a total trading volume of 233.88 billion HKD. The Hang Seng China Enterprises Index fell 1.28%, while the Hang Seng Tech Index dropped 1.76% [1]. - Major blue-chip stocks experienced significant movements, with Henderson Land Development leading the decline, down 8.64% at 25.9 HKD, while China Biologic Products rose 10.06% to 5.91 HKD [2]. Sector Analysis - The technology sector saw a collective decline, with Alibaba down nearly 4% and Tencent over 1%. The copper sector was negatively impacted by Trump's tariff threats, leading to a drop in copper-related stocks [3][6]. - The innovative drug sector performed well, with Hengrui Medicine surging 15.61% to 69.6 HKD, indicating resilience amid broader market declines [3][4]. Specific Stock Movements - Macau's gaming sector showed strong performance, with Wynn Macau up 6.33% and Melco Resorts up 2.12%, driven by robust gaming revenue growth [4][5]. - Copper stocks faced significant declines, with Luoyang Molybdenum down 4.74% and Jiangxi Copper down 3.46%, reflecting market reactions to tariff announcements [5][6]. Commodity Prices - International gold prices fell below 3,300 USD per ounce, influenced by reduced safe-haven demand amid tariff uncertainties. Analysts expect gold prices to remain volatile within a range of 3,000 to 3,500 USD per ounce [7].

Core Viewpoint - The Hong Kong Innovative Drug ETF (159567) has shown significant growth in both share volume and fund size since its inception, indicating strong investor interest in the innovative drug sector [1]. Group 1: Fund Performance - As of July 9, 2024, the Hong Kong Innovative Drug ETF (159567) closed with a gain of 1.08% and a trading volume of 2.352 billion yuan [1]. - The fund's share volume increased by 419.87% from 3.95 million shares at the end of 2023 to 20.55 million shares by July 8, 2024 [1]. - The fund's size grew by 749.27%, from 378 million yuan at the end of 2023 to 3.209 billion yuan by July 8, 2024 [1]. Group 2: Liquidity and Trading Activity - Over the last 20 trading days, the cumulative trading amount for the ETF reached 42.082 billion yuan, with an average daily trading amount of 2.104 billion yuan [1]. - Since the beginning of the year, the ETF has recorded a total trading amount of 100.143 billion yuan over 124 trading days, averaging 808 million yuan per day [1]. Group 3: Fund Management - The current fund manager, Ma Jun, has managed the Hong Kong Innovative Drug ETF since its inception on January 3, 2024, achieving a return of 56.11% during the management period [1]. Group 4: Top Holdings - The ETF's top holdings include WuXi Biologics (11.47%), BeiGene (10.87%), and Innovent Biologics (9.60%), among others, indicating a focus on leading companies in the innovative drug sector [2]. - The fund's holdings are diversified across several key players in the biotechnology and pharmaceutical industries, with significant positions in companies like China Biologic Products and CSPC Pharmaceutical Group [2].

Group 1 - The Hong Kong Innovative Drug ETF (159567) closed down 1.44% on July 7, with a trading volume of 1.402 billion yuan [1] - The fund was established on January 3, 2024, with a management fee of 0.50% and a custody fee of 0.10% [1] - As of July 4, 2024, the fund's latest share count was 1.995 billion shares, with a total size of 3.203 billion yuan, reflecting a 404.69% increase in shares and a 747.72% increase in size year-to-date [1] Group 2 - The fund's liquidity showed a cumulative trading amount of 44.415 billion yuan over the last 20 trading days, with an average daily trading amount of 2.221 billion yuan [1] - Year-to-date, the cumulative trading amount reached 96.310 billion yuan over 122 trading days, with an average daily trading amount of 789 million yuan [1] - The current fund manager, Ma Jun, has managed the fund since its inception, achieving a return of 60.51% during the tenure [1] Group 3 - The top holdings of the Hong Kong Innovative Drug ETF include WuXi Biologics (11.47%), BeiGene (10.87%), and Innovent Biologics (9.60%), among others [2] - The fund's holdings are diversified across various companies in the innovative drug sector, with significant investments in both domestic and international firms [2]

Core Viewpoint - Hansoh Pharmaceutical is a leading innovation-driven pharmaceutical company in China, focusing on major disease treatments and achieving significant growth in revenue and innovative drug sales [2] Company Overview - Hansoh Pharmaceutical Group Limited is recognized for its commitment to continuous innovation aimed at improving human life quality, with a focus on oncology, anti-infection, central nervous system, metabolism, and autoimmune diseases [2] - The company has established itself among the top 100 global pharmaceutical companies and is a key high-tech enterprise in China, having been listed on the Hong Kong Stock Exchange since June 2019 [2] Research and Development - Hansoh has set up four R&D centers in Shanghai, Lianyungang, Changzhou, and Maryland, USA, employing over 1,800 specialized R&D personnel [2] - The company has developed a comprehensive R&D system covering all stages from information gathering to clinical research, and has established several national-level research institutions [2] - Currently, there are 40 candidate innovative drug projects undergoing over 60 clinical trials, showcasing a competitive R&D pipeline [2] Financial Performance - In 2024, the company reported a revenue of 12.261 billion yuan, representing a year-on-year growth of 21.3%, with innovative drugs and cooperative product sales accounting for 9.477 billion yuan, or 77.3% of total revenue [2] - Seven innovative drugs have been approved for market launch, with nine indications included in the national medical insurance directory, significantly reducing patient medication costs [2] International Strategy - Hansoh is actively pursuing business development collaborations, having engaged in 11 introduced projects, with nine in clinical stages and two in commercialization [2] - The company has established licensing collaborations with leading international pharmaceutical firms such as GSK and Merck [2] Sustainability and Quality Standards - Hansoh integrates ESG principles into its long-term strategy, maintaining an MSCI ESG rating of AA and leading in key areas such as corporate governance and inclusive healthcare [2] - The company’s production quality system has received official certifications from the FDA, EMA, and PMDA, allowing its products to be sold in major international markets [2]

截至2025年6月30日 14:27，中证香港创新药指数(931787)上涨0.68%，成分股昭衍新药(06127)上涨 11.01%，云顶新耀(01952)上涨9.27%，泰格医药(03347)上涨7.85%，凯莱英(06821)上涨4.84%，药明合 联(02268)上涨4.76%。港股创新药ETF(513120)上涨1.16%。 流动性方面，港股创新药ETF盘中换手33.61%，成交44.72亿元，市场交投活跃。拉长时间看，截至6月 27日，港股创新药ETF近1周日均成交67.88亿元。 规模方面，港股创新药ETF最新规模达133.20亿元。份额方面，港股创新药ETF最新份额达118.60亿 份，创近1月新高。 从资金净流入方面来看，港股创新药ETF近14天获得连续资金净流入，最高单日获得6.09亿元净流入， 合计"吸金"31.59亿元。 融资买入方面，6月27日港股创新药ETF获融资买入5.11亿元，两融余额12.21亿元。 截至6月27日，港股创新药ETF近1年净值上涨86.07%，QDII股票型基金排名1/120。从收益能力看，截 至2025年6月27日，港股创新药ETF自成立以来，最高单月回报为 ...

Investment Rating - The report assigns a "Buy" rating to Hansoh Pharma with a 12-month price target of HK$22.71, indicating a downside potential of 20.6% from the current price of HK$28.60 [8][9]. Core Insights - Management emphasizes encouraging progress in ex-China development for out-licensed assets, including B7H3 ADC, B7H4 ADC, and oral GLP-1, with a reiterated product sales guidance of double-digit growth in 2025 [1][2]. - The key product Ameile is projected to achieve peak sales of Rmb8 billion, with additional upside potential from combination therapies [1][3]. - The company anticipates deal-making opportunities from early-stage ADCs and next-generation disease modifiers for immunology diseases [1][7]. Summary by Sections Ex-China Development Progress - HS-20093 (B7H3 ADC) has received two breakthrough designations from the FDA for SCLC and osteosarcoma, with GSK planning pivotal studies by Q4 2025 [2]. - HS-20089 (B7H4 ADC) is set to commence pivotal trials in 2026 for gynecological cancers [2]. - HS-10535 (oral GLP-1) is expected to enter phase 1 trials in 2025, targeting multiple cardiovascular and metabolic diseases [2]. - HS-20094 (GLP-1/GIP) will focus on weight reduction strategies in combination with Regeneron's internal pipeline assets [2]. Sales Growth and Commercialization - Management guides for double-digit sales growth in 2025, driven by innovative drugs, particularly Ameile, which has a revised sales target of Rmb6 billion for 2025 [3][6]. - The potential for collaboration income is highlighted as a sustainable revenue driver, supported by a growing R&D pipeline with 8-10 new INDs each year [6]. Licensing and Deal-Making Opportunities - Potential licensing-out opportunities include early-stage pre-clinical assets and several ADCs that have entered clinical stages [7]. - Specific assets with deal-making potential include HS-20122 (EGFR/cMET ADC), HS-10370 (KRAS G12D), and others targeting immunology diseases [7].

Core Viewpoint - The Hong Kong Innovative Drug ETF (159567) has shown significant growth in both share volume and fund size since its inception, indicating strong investor interest in the innovative drug sector [1]. Group 1: Fund Performance - As of June 24, the Hong Kong Innovative Drug ETF (159567) closed with a gain of 2.25% and a trading volume of 2.373 billion yuan [1]. - The fund was established on January 3, 2024, with a management fee of 0.50% and a custody fee of 0.10% [1]. - The latest share count reached 1.478 billion, with a total fund size of 2.217 billion yuan as of June 23, reflecting a 273.92% increase in shares and a 486.71% increase in size since December 31, 2024 [1]. Group 2: Liquidity and Trading Activity - Over the last 20 trading days, the ETF recorded a cumulative trading amount of 38.434 billion yuan, averaging 1.922 billion yuan per day [1]. - Year-to-date, the ETF has seen a total trading amount of 79.325 billion yuan over 113 trading days, averaging 0.702 billion yuan per day [1]. Group 3: Fund Management - The current fund manager is Ma Jun, who has managed the fund since its inception, achieving a return of 49.94% during the management period [1]. Group 4: Top Holdings - The ETF's top holdings include WuXi Biologics (11.47%), BeiGene (10.87%), and Innovent Biologics (9.60%), among others, with significant market values attributed to each [2].

Investment Rating - Initiate with OUTPERFORM rating [1][2] Core Views - Hansoh Pharma is a leading innovative pharmaceutical company in China, focusing on oncology, anti-infection, central nervous system diseases, metabolic diseases, and autoimmune diseases, with a robust pipeline of over 30 clinical-stage innovative drug projects and 50 ongoing clinical studies [3][9] - The company has seen a significant increase in innovative drug revenue, projected to exceed 10 billion RMB in 2025, accounting for over 80% of total revenue [3][17] - The oncology segment is a key growth driver, with revenue expected to reach 8.12 billion RMB in 2024, representing 66% of total revenue [27] Summary by Sections 1. Company Overview - Established in 1995, Hansoh Pharma has over 30 years of experience in the pharmaceutical industry, with a focus on R&D, production, and commercialization [9][10] - The company has a strong global management team with extensive industry experience [13][14] 2. Oncology Segment - The oncology segment is well-established, with a comprehensive product system covering various disease types and treatment stages [4][27] - The core product, Amivantamab, has gained significant market share and is expected to continue driving growth [27][29] 3. Innovative Drug Pipeline - The company has a diverse pipeline with over 40 innovative drug candidates across various therapeutic areas, including ADCs and dual antibodies [20][24] - Recent collaborations with multinational corporations have strengthened the company's R&D capabilities and expanded its pipeline [5][25] 4. Financial Projections - Revenue projections for FY25-27 are 13.76 billion RMB, 14.86 billion RMB, and 16.5 billion RMB, respectively, with net profits of 4.62 billion RMB, 4.69 billion RMB, and 5.2 billion RMB [6][17] - The company has increased its R&D investment significantly, with a projected R&D expense ratio of 22% in 2024 [15][17] 5. Market Position and Strategy - Hansoh Pharma is positioned as a leading player in the Chinese pharmaceutical market, with a focus on innovative drug development and international expansion [3][9] - The company aims to leverage its strong R&D capabilities and strategic partnerships to enhance its market presence and drive future growth [5][20]

Core Insights - The pharmaceutical-themed funds are dominating the performance rankings for the first half of the year, with nine out of the top ten funds being pharmaceutical-focused, led by Huatai-PineBridge Hong Kong Advantage Select A, which achieved a 103.67% return [1][2] - The strong performance of these funds is driven by multiple factors, including breakthroughs in innovative drug development, recovery of liquidity in the Hong Kong stock market, and restructuring of valuation systems through cross-border business development transactions [1][2] Fund Performance - The average return of the top ten actively managed equity funds exceeds 69%, with notable performances from Changcheng Pharmaceutical Industry Select A and Yongying Pharmaceutical Innovation Smart Select A, achieving returns of 87.73% and 79.79% respectively [2] - Huatai-PineBridge Hong Kong Advantage Select A is highlighted as a "doubling fund" for the year, marking a significant achievement in the market [2] Market Dynamics - The pharmaceutical sector is experiencing a "double hit" in profitability and valuation in 2025, with the Hang Seng Hong Kong Stock Connect Innovative Drug Index showing a year-to-date increase of 70.09% [3] - The performance of pharmaceutical funds is significantly influenced by their exposure to Hong Kong stocks, with the Hang Seng Healthcare Index rising by 54.59%, outperforming the A-share innovative drug index, which increased by 24.15% [3] Investment Strategy - Huatai-PineBridge Hong Kong Advantage Select A has benefited from investments in leading companies in the Hong Kong innovative drug and medical device sectors, capitalizing on improved overseas liquidity and favorable industry policies [4] - The introduction of financing channels for unprofitable biotech companies in Hong Kong has allowed competitive biotech firms to enter the market, with many now in advanced stages of research and commercialization [4] Future Outlook - The pharmaceutical industry is expected to maintain long-term investment value driven by demographic aging, consumption upgrades, and technological innovation, although caution is advised regarding potential overvaluation of certain stocks [6] - The current market for innovative drugs is characterized by high valuations and volatility, with expectations for a rebalancing between these factors in the near future [6][7] - The valuation of leading companies and key stocks is anticipated to be reassessed, with a focus on the long-term potential of authorized products and revenue realization from commercial partnerships [7]

Investment Rating - The report maintains a strong confidence in the pharmaceutical sector's potential for a reversal in 2025, highlighting innovative drugs and left-side sector recovery as the main investment opportunities [4][44]. Core Insights - The innovative drug sector remains in a high prosperity state, with significant collaborations continuing to emerge. The upcoming 85th American Diabetes Association (ADA) Scientific Sessions in June 2025 is expected to provide important clinical and research updates from endocrine and metabolic drug companies, suggesting investment opportunities in this area [11][44]. - The report emphasizes the increasing approval and quality of new drugs in China, indicating a recovery in the innovative drug sector that has been undervalued for several years. The global recognition of China's technological capabilities is also drawing renewed attention from capital markets towards domestic pharmaceutical companies [27][44]. - The report suggests focusing on leading companies with international expansion and innovation progress, such as Heng Rui Medicine, BeiGene, Innovent Biologics, and others, as well as ADC leaders like Keren Pharmaceutical and Bai Li Tianheng [27][44]. Summary by Sections Pharmaceutical Sector - UroGen Pharma's FDA approval of Zusduri, the first and only drug for treating recurrent low-grade intermediate-risk non-muscle invasive bladder cancer, marks a significant breakthrough in drug delivery systems [20][21]. - The report highlights the progress in chronic disease metabolism, with Eli Lilly's oral Lp(a) lowering drug being considered for breakthrough therapy designation, indicating a growing pipeline of innovative treatments [23][27]. - Merck's oral PCSK9 inhibitor Enlicitide has shown positive results in Phase III trials, representing a significant advancement in cholesterol management therapies [28][29]. Medical Devices - The launch of the MAGLUMI X10, a high-speed automated chemiluminescence immunoassay analyzer, reflects the increasing demand for innovative medical devices in China [33][35]. - The investment by Xianjian Technology in Jianhu Medical to develop electrophysiology products indicates a strategic move to enhance capabilities in high-end medical devices [36][38]. Medical Services - The successful initiation of China's first invasive brain-computer interface clinical trial signifies a major advancement in medical technology, with potential applications for improving the quality of life for patients with spinal cord injuries and amputations [39][40]. - The report anticipates rapid growth in related industries, including high-end imaging equipment and surgical robots, driven by technological advancements and policy support [40]. Traditional Chinese Medicine - The approval of Fangsheng Pharmaceutical's innovative traditional Chinese medicine product marks a significant step in the development of new drugs in this sector, with an expected increase in new drug applications in the coming years [41][43].