Group 1 - Evergrande Property (06666) resumed trading and rose over 28% as Evergrande and liquidators plan to sell shares, with potential transactions in preliminary stages [1] - Alibaba-W (09988) increased by over 5% and Baidu Group-W (09888) rose over 8% as both companies began using internally designed chips to train their AI models, replacing some NVIDIA chips [1] - China Merchants Energy (01138) saw a rise of over 5% after announcing plans to issue A-shares to raise no more than 8 billion yuan for fleet upgrades, with increased oil production expected to boost shipping demand [1] - Kangfang Biologics (09926) increased by over 4% after presenting excellent clinical data for its drug at WCLC, highlighting its global market value [1] - NIO-SW (09866) rose over 3% as it plans to publicly issue $1 billion in shares, with Goldman Sachs expecting the funds to support the company's product strategy [1] - WanGuo Data-SW (09698) surged over 15% as AI drives data center demand, with the company fully engaging in partnerships with cloud service providers [1] - Jiajian Ankang-B (02617) rose over 32%, with its market capitalization exceeding 50 billion HKD after receiving approval for a Phase II trial of its drug [1] Group 2 - Meitu (01357) increased by over 6% after announcing a partnership with Alibaba's Tongyi Laboratory to enhance its products with advanced AI models [2] - Robotics concept stocks mostly rose, with UBTECH (09880) up over 3%, ShouCheng Holdings (00697) up over 3%, Yuejiang (02432) up over 4%, and Jizhi Jia-W (02590) up over 6%, as domestic and international catalysts for humanoid robot commercialization are expected [2] - Bilibili-W (09626) rose over 2% as it revealed its new strategy card game "Three Kingdoms: Hundred Generals Card," with institutions optimistic about the company's growth potential with AI integration [2] Group 3 - Alibaba (BABA.US) rose 8.00% after the launch of the "Gaode Street Ranking," which attracted over 40 million users on its first day, becoming the largest food ranking in China [3] - XPeng Motors (XPEV.US) increased by 2.39% after receiving a special flight permit for its "land aircraft" (X3-F) in the UAE [3] - Trip.com (TCOM.US) rose 3.21% after forming a five-year strategic partnership with Cityline, marking its first collaboration with a major ticket supplier in Hong Kong and Macau [3] - NIO (NIO.US) increased by 6.21% after completing a $1 billion equity issuance, marking its second public financing plan this year [3] - Kingsoft Cloud (KC.US) rose 5.60% as Citigroup raised its target price to $20, citing strong AI-related demand from Xiaomi [3] - NetEase (NTES.US) continued to rise by 2.98%, reaching a historical high after launching its first sci-fi shooting mobile game based on the "Destiny" IP [3] Group 4 - Adobe (ADBE.US) rose 0.11% after launching its first AI agent product suite to help customers streamline workflows across various applications [4] - Hesai (HSAI.US) increased by 0.90% as sources reported its Hong Kong IPO priced at HKD 212.8 per share, raising at least HKD 3.62 billion with oversubscription nearly 120 times [4] - Tesla (TSLA.US) rose 6.04% as the Model Y L is set to launch in the domestic market on September 19, with orders extending to November [4] - Online real estate platform Opendoor (OPEN.US) surged 79.52% after appointing Kaz Nejatian as the new CEO, with co-founder Keith Rabois returning to the board [4]

Core Viewpoint - Company maintains a "buy" rating for Kangfang Biopharma, projecting revenue growth from 34.19 billion to 85.77 billion CNY from 2025 to 2027, supported by strong commercialization and clear overseas clinical data [1] Group 1: Financial Performance - In H1 2025, Kangfang Biopharma achieved revenue of 14.12 billion CNY, a year-on-year increase of 37.75%, with product sales revenue reaching 14.01 billion CNY, up 49.20% [2] - R&D expenses were 7.31 billion CNY, increasing by 23.06%, while sales and management expenses rose by 29.84% and 34.00%, respectively [1] Group 2: Product Development and Clinical Trials - The commercialization of core dual antibodies, Kadunil and Ivosidenib, is driving revenue growth, with expectations for further performance increases as new products and indications are approved [2] - Ivosidenib's OS data presented at the WCLC 2025 showed significant improvement, with an OSHR of 0.70 in the North American population, indicating a strong survival benefit [2][3] - Ongoing clinical trials for Ivosidenib include various cancer types, with a focus on expanding indications, which could enhance its market potential [3]

Core Viewpoint - The report maintains a "buy" rating for Kangfang Biopharma (09926), projecting significant revenue growth from 2025 to 2027, driven by strong commercialization and a promising innovation pipeline [1][2]. Group 1: Financial Performance - Kangfang Biopharma reported a revenue of 14.12 billion yuan for H1 2025, representing a year-on-year increase of 37.75% [1][2]. - The sales revenue from product sales reached 14.01 billion yuan, reflecting a 49.20% year-on-year growth [2]. - R&D expenses were 7.31 billion yuan, up 23.06% year-on-year, while sales and management expenses increased by 29.84% and 34.00%, respectively [1]. Group 2: Product Development and Clinical Trials - The commercialization of core dual antibodies, Kadunil and Ivosidenib, is driving revenue growth, with expectations for further performance improvements as new products and indications are approved [2]. - The WCLC 2025 conference showcased updated overall survival (OS) data for Ivosidenib, indicating a significant improvement in survival benefits, particularly in the North American population [2][3]. - Ongoing clinical trials for Ivosidenib include various cancer types, with a focus on expanding its indications, which could enhance its market potential [3].

Core Insights - 康方生物's stock rose over 4%, specifically 4.39%, reaching 133.3 HKD with a trading volume of 288 million HKD [1] Group 1: Clinical Research Results - 康方生物's overseas partner, Summit Therapeutics, presented updated data from the global multicenter Phase III HARMONi study at the 2025 WCLC Presidential Symposium, indicating an improvement in overall survival (OS) with a hazard ratio (HR) of 0.78 (P=0.0332) [1] - The updated OS data shows a positive trend compared to the analysis from May, particularly highlighting a significant benefit in the North American population with an HR of 0.70 [1] Group 2: Clinical Performance and Market Value - 中信建投 noted that both the international Phase III HARMONi study and the Phase III HARMONi-A study conducted in China demonstrated excellent clinical performance in progression-free survival (PFS) and OS [1] - The results confirm that the依沃西 therapy not only has rapid efficacy and effective disease control but also exhibits a favorable tail effect in tumor immunotherapy, emphasizing its consistent benefits and safety across different regions and ethnicities [1]

Core Viewpoint - 康方生物's stock rose over 4%, reaching 133.3 HKD with a trading volume of 288 million HKD, following the release of updated data from the HARMONi study at the 2025 WCLC conference [1] Group 1: Clinical Study Results - 康方生物's partner, Summit Therapeutics, presented updated data from the global multicenter Phase III HARMONi study, showing an improvement in overall survival (OS) with a hazard ratio (HR) of 0.78 (P=0.0332) [1] - The updated OS data indicates a positive trend compared to the analysis from May, particularly highlighting a significant benefit in the North American population with an HR of 0.70 [1] Group 2: Treatment Efficacy - 中信建投 noted that the HARMONi study results, along with the Phase III HARMONi-A study conducted in China, demonstrated excellent clinical performance in both progression-free survival (PFS) and OS [1] - The findings confirm that the依沃西 therapy offers rapid efficacy and effective disease control, along with a favorable tail effect in tumor immunotherapy [1] Group 3: Global Market Potential - The consistent benefit trends and safety profiles observed in both global and Chinese clinical settings further emphasize the global market value of 依沃西 [1]

Key Points - The top three companies with net inflows of southbound funds are Alibaba-W (09988) with 4.234 billion, Ping An of China (02318) with 844 million, and Southern Hang Seng Technology (03033) with 480 million [1] - The top three companies with net outflows of southbound funds are Xiaomi Group-W (01810) with -1.733 billion, Meituan-W (03690) with -852 million, and Kangfang Biologics (09926) with -462 million [1] - In terms of net inflow ratio, Tehai International (09658) leads with 62.75%, followed by Yancoal Australia (03668) with 51.59%, and Yimeng Biologics-B (09606) with 51.01% [1] - The companies with the highest net outflow ratios are GX China (03040) at -100.00%, Kangji Medical (09997) at -60.98%, and China International Marine Containers (02039) at -48.45% [1] Top 10 Net Inflows - Alibaba-W (09988) had a net inflow of 4.234 billion, representing a 16.56% increase in closing price to 141.900 [2] - Ping An of China (02318) saw a net inflow of 844 million, with a 24.06% increase in closing price to 57.200 [2] - Southern Hang Seng Technology (03033) recorded a net inflow of 480 million, with a 6.20% increase in closing price to 5.715 [2] Top 10 Net Outflows - Xiaomi Group-W (01810) experienced a net outflow of -1.733 billion, with a -17.96% decrease in closing price to 56.200 [2] - Meituan-W (03690) had a net outflow of -852 million, with a -5.77% decrease in closing price to 99.650 [2] - Kangfang Biologics (09926) faced a net outflow of -462 million, with a -15.64% decrease in closing price to 140.100 [2] Net Inflow Ratios - Tehai International (09658) had a net inflow ratio of 62.75% with a net inflow of 7.0962 million, closing at 14.980 [3] - Yancoal Australia (03668) recorded a net inflow ratio of 51.59% with a net inflow of 28.6046 million, closing at 27.620 [3] - Yimeng Biologics-B (09606) had a net inflow ratio of 51.01% with a net inflow of 194 million, closing at 406.400 [3] Net Outflow Ratios - GX China (03040) had a net outflow ratio of -100.00% with a net outflow of -11.4 thousand, closing at 38.140 [3] - Kangji Medical (09997) recorded a net outflow ratio of -60.98% with a net outflow of -20.9363 million, closing at 8.850 [3] - China International Marine Containers (02039) had a net outflow ratio of -48.45% with a net outflow of -16.1516 million, closing at 8.020 [3]

Summary of Key Points from Conference Call Records Industry Overview - The global pharmaceutical industry is facing a "patent cliff," with over 40% of revenues affected for many multinational companies, creating opportunities for Chinese innovative drug companies to introduce their assets [1][3][4] - The Chinese innovative drug sector is experiencing a diverse globalization path, including overseas expansion, business development, and joint ventures, with significant collaboration with regions like Europe, Southeast Asia, and the Middle East [1][5] Company Performance - **Hengrui Medicine**: Achieved a revenue growth of 15.88% and a net profit growth of 29.67% in the first half of the year, with expectations for further performance improvement in the second half [1][7] - **Kangfang Biotech**: Reported a revenue increase of 49.20% in the first half of the year, with promising data from its API12 presented at WCLC and ongoing global clinical trials for AK104 [1][8] Market Dynamics - The innovative drug sector showed healthy performance in the first half of the year, with significant contributions from products entering the medical insurance list, enhancing profit margins for companies like Kangfang Biotech, Hengrui Medicine, and others [1][6] - The domestic CRO (Contract Research Organization) industry is entering a new phase after adjustments, with a recovery in overseas demand and a clear trend of Chinese innovative drugs moving into late-stage clinical trials [3][10][11] Future Trends and Drivers - The core driving force for Chinese innovative drugs going global is their breakthrough global competitiveness, particularly in next-generation immunotherapy and antibody-drug conjugates (ADCs) [2][12] - The domestic CRO industry is expected to benefit from sustained global innovation demand, increased R&D spending, and the internationalization of Chinese innovative drugs [12] Geopolitical Impact - Geopolitical factors have influenced the Chinese CRO industry, with concerns arising from U.S. regulations, but these have been alleviated over time as companies enhance their core capabilities and expand overseas [13] Notable Companies and Products - **Innovative Products**: - **Sinda's PD-L1 monoclonal antibody**: Demonstrated promising survival data for patients with solid tumors, indicating a broad international market potential [19] - **Gree Pharmaceutical's GLP-1 drugs**: Showed favorable clinical data with significant market potential due to expected weight loss effects [20][21] - **Leading CDMO Companies**: Companies like WuXi AppTec reported a 21% revenue growth and a 102% increase in net profit, benefiting from the ADC industry and overseas expansion [3][14] Conclusion - The Chinese innovative drug sector is poised for growth, driven by strong performance metrics, a favorable global market environment, and strategic international collaborations. The ongoing developments in clinical trials and product launches are expected to further enhance the competitive landscape for these companies [1][9][22][23][24]

Investment Rating - The investment rating for the company is "Buy" (maintained) due to smooth commercialization progress and further updates on HARMONi data [5]. Core Views - The company reported a revenue of 1.412 billion RMB in H1 2025, representing a year-on-year increase of 37.75%, with a net profit attributable to shareholders of -570 million RMB [7]. - The commercialization of key products, namely Cadonilimab and Ivosidenib, has driven revenue growth, with product sales revenue increasing by 49.20% year-on-year [7]. - The HARMONi study presented at the WCLC 2025 conference showed improved overall survival (OS) data, with an OS hazard ratio (HR) of 0.78, indicating significant survival benefits [7]. - The company is expected to achieve revenues of 34.19 billion RMB, 55.98 billion RMB, and 85.77 billion RMB for the years 2025 to 2027, respectively [7]. Financial Summary - Revenue projections for 2023, 2024, 2025E, 2026E, and 2027E are 4,526 million RMB, 2,124 million RMB, 3,419 million RMB, 5,598 million RMB, and 8,577 million RMB, respectively, with corresponding growth rates of 440.3%, -53.1%, 61.0%, 63.7%, and 53.2% [6]. - The net profit attributable to shareholders is projected to be 2,028.30 million RMB in 2023, -514.52 million RMB in 2024, -29.64 million RMB in 2025E, 586.11 million RMB in 2026E, and 1,485.85 million RMB in 2027E, with growth rates of 273.6%, -125.4%, 94.2%, 2077.2%, and 153.5% respectively [6]. - The company's reasonable equity value is estimated at 187.5 billion HKD, assuming a perpetual growth rate of 3% and a WACC of 7.06% [7].

Market Overview - On September 11, the Hang Seng Index fell by 0.43%, closing at 26,086.32 points, while southbound funds through the Stock Connect recorded a net purchase of HKD 18.989 billion [1][3] - The total trading volume for the Stock Connect on September 11 was HKD 172.214 billion, with a net purchase of HKD 18.989 billion [1] Stock Performance - In the Shanghai Stock Connect, the total trading volume was HKD 103.737 billion, with a net purchase of HKD 8.073 billion [1] - In the Shenzhen Stock Connect, the total trading volume was HKD 68.477 billion, with a net purchase of HKD 10.916 billion [1] Active Stocks - The most actively traded stock in the Shanghai Stock Connect was Alibaba-W, with a trading volume of HKD 80.75 billion and a net purchase of HKD 29.46 billion, closing up by 0.35% [1][2] - Meituan-W had the highest net sell amount of HKD 9.36 billion, closing down by 5.06% [1][2] - In the Shenzhen Stock Connect, Alibaba-W also led with a trading volume of HKD 43.575 billion and a net purchase of HKD 7.835 billion [2] - The top net purchase stock was Innovent Biologics, with a net purchase of HKD 0.847 billion, despite closing down by 2.51% [2] Summary of Key Stocks | Stock Code | Stock Name | Trading Volume (HKD million) | Net Purchase (HKD million) | Daily Change (%) | |------------|------------------|------------------------------|----------------------------|-------------------| | 09988 | Alibaba-W | 807.48 | 294.62 | 0.35 | | 03690 | Meituan-W | 618.38 | -93.59 | -5.06 | | 00981 | SMIC | 491.04 | 41.75 | 4.97 | | 01801 | Innovent Biologics| 253.79 | 84.73 | -2.51 | | 00700 | Tencent Holdings | 263.33 | -92.26 | -0.63 | [2]

Market Overview - On September 11, the Hang Seng Index fell by 0.43% with a total southbound trading volume of HKD 172.21 billion, including buy transactions of HKD 95.60 billion and sell transactions of HKD 76.61 billion, resulting in a net buy of HKD 18.99 billion [1] Southbound Trading Activity - The southbound trading through Stock Connect (Shenzhen) had a total trading volume of HKD 68.48 billion, with buy transactions of HKD 39.70 billion and sell transactions of HKD 28.78 billion, leading to a net buy of HKD 10.92 billion [1] - The southbound trading through Stock Connect (Shanghai) had a total trading volume of HKD 103.74 billion, with buy transactions of HKD 55.91 billion and sell transactions of HKD 47.83 billion, resulting in a net buy of HKD 8.07 billion [1] Active Stocks - Alibaba-W was the most actively traded stock with a total trading volume of HKD 124.32 billion and a net buy of HKD 37.30 billion, closing with a price increase of 0.35% [1][2] - Other notable stocks included Meituan-W and SMIC, with trading volumes of HKD 84.52 billion and HKD 80.43 billion, respectively [1] - Tencent Holdings had the highest net sell amount of HKD 11.51 billion, closing down by 0.63% [1][2] Continuous Net Buying and Selling - Alibaba-W and SMIC were the only two stocks with continuous net buying for more than three days, with Alibaba-W having a total net buy of HKD 371.43 billion over 15 days and SMIC with HKD 15.76 billion over 3 days [2] - Stocks with continuous net selling included Kangfang Biotech, Tencent Holdings, and Meituan-W, with total net sell amounts of HKD 17.48 billion, HKD 14.61 billion, and HKD 10.28 billion, respectively [2]