Core Viewpoint - Heng Rui Medicine (01276.HK) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Group 1 - The company plans to repurchase 209,900 A-shares at a total cost of RMB 12.7432 million [1] - The buyback price per share is set between RMB 60.58 and RMB 60.78 [1]

Core Viewpoint - Heng Rui Medicine (01276) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Summary by Categories Company Actions - The company plans to repurchase 209,900 A-shares at a total cost of 12.7432 million RMB [1] - The buyback price per share is set between 60.58 and 60.78 RMB [1] Financial Implications - The total expenditure for the buyback reflects a strategic move to enhance shareholder value [1]

Group 1: Financial Market Overview - The A-share market experienced a general adjustment with all major indices declining, with the STAR 50 index showing the largest drop of 2.13% [2] - As of November 18, the margin trading balance in the two markets was 24,948.32 billion yuan, a decrease of 25.67 billion yuan from the previous week [2] - The average daily number of investors participating in margin trading decreased by 3.91% to 437,462 [2] Group 2: Industry Insights - Machinery and Equipment - In October, the production of industrial robots in China increased by 17.90% year-on-year, with a monthly output of 57,900 units, and the cumulative output for the first ten months reached approximately 602,700 units, a year-on-year increase of 28.80% [8] - The construction machinery sector is expected to maintain growth due to favorable downstream demand driven by infrastructure projects and a reduction in tariff disturbances [7][8] - The mechanical equipment industry is rated as "optimistic," with a focus on domestic brands gaining market share [5][8] Group 3: Pharmaceutical and Biological Industry Performance - In Q3 2025, the pharmaceutical and biological industry saw a recovery in revenue and net profit, with a notable increase in gross and net profit margins [9] - The chemical pharmaceutical sector reported a revenue of 1237.44 billion yuan, with a net profit of 114.64 billion yuan, reflecting a significant improvement in profitability [9][10] - The medical device sector showed signs of recovery, with Q3 revenue reaching 604.49 billion yuan, although net profit decreased by 5.1% year-on-year [11]

Report Summary 1. Investment Rating The provided content does not mention the industry investment rating. 2. Core Views - Qi Zhen, a fund manager at Huabao Fund, has a "policy + industry" dual - driven investment framework, focusing on innovative drugs in the medium term. His investment style combines growth and certainty with flexible valuation tolerance, and he prefers long - term holding with low turnover and portfolio structure optimization [3][17][45]. - Since Qi Zhen took office, Huabao Big Health A has achieved remarkable returns, outperforming over 90% of similar pharmaceutical theme funds. Although its drawdown control is slightly weak, it still offers good risk - return performance [4][13][44]. - Qi Zhen is an excellent fund manager with a profound professional background, a mature investment system, and strict risk awareness. He is expected to continue generating excess returns as the Chinese innovative drug industry develops [46]. 3. Summary by Directory 3.1 Fund Manager Information - **Manager Introduction**: Qi Zhen holds a biotechnology bachelor's degree and a biology doctorate from Shanghai Jiao Tong University. He has worked in Northeast Securities and Essence Securities and joined Huabao Fund in October 2020. Since February 2023, he has been the fund manager of Huabao Big Health Hybrid Securities Investment Fund [4][9][44]. - **Managed Product Introduction** - **Representative Product**: Qi Zhen has managed Huabao Big Health A (006881.OF) since February 28, 2023. As of September 30, 2025, its total scale is 268 million yuan [4][10][44]. - **Representative Product Net Value Performance**: After excluding the 3 - month establishment period, Huabao Big Health A significantly outperformed the CSI All - Pharmaceutical Index, recording a cumulative positive excess return of 60.00%. Its return performance ranks among the top in pharmaceutical theme funds, surpassing over 90% of similar funds [11][13][15]. 3.2 Fund Manager Investment Ability Analysis - **Investment Scope - Policy + Industry Dual - Driven, Medium - Term Focus on Innovative Drugs**: Qi Zhen has a biological professional background and a large amount of professional reading. His investment framework is "policy + industry" dual - driven. He focuses on innovative drugs, with a position ratio of over 90%. He mines Alpha stocks with pipeline differentiation or expected inflection points and adjusts the portfolio dynamically [20][21][45]. - **Stock - Holding Characteristics - Balancing Growth and Certainty, Flexible Valuation Tolerance**: For innovative drug companies, Qi Zhen uses pipeline market value conversion for valuation, considering factors such as clinical stage success rate and management credibility. He gives higher valuation space to innovative drugs and focuses more on static valuation and performance improvement in traditional sub - industries [29][45]. - **Operation Characteristics - Preference for Long - Term Holding, Low Turnover, and Portfolio Structure Optimization**: Qi Zhen's operation strategy is mainly long - term holding of core positions, with an annualized turnover rate of only 2 - 3 times. He prefers to invest when the stock price is at the bottom or oversold. He controls drawdown by adjusting the portfolio structure rather than market timing and shows flexibility in A/H share allocation [35][36][45]. 3.3 Summary - Qi Zhen is an outstanding fund manager with a "policy + industry" analysis framework, pipeline market value valuation method, and multi - level risk control system. He is expected to create excess returns as the Chinese innovative drug industry develops. Investors can allocate his products to participate in the investment opportunities of the Chinese pharmaceutical industry upgrade [46]. 3.4 Appendix - The appendix provides product elements of Huabao Big Health A, including fund name, abbreviation, full name, establishment date, comparison benchmark, investment target, investment scope, management fee rate, and current fund manager's tenure [48].

Investment Rating - The industry investment rating is "Recommended (Maintain)" [1] Core Views - The innovative drug industry chain continues to show strong performance, with the pharmaceutical and biotechnology sector outperforming the CSI 300 index, rising by 3.29% while the index fell by 1.08% during the week of November 10 to November 14, 2025 [9][10] - The market potential for small nucleic acids is continuously increasing, indicating that it may become a significant technological hotspot in innovative drugs [19][22] - The sentiment in the innovative drug sector has recently declined, but the sustainability of the sector's prosperity is expected to continue, with a focus on "innovation + internationalization" [22][24] Summary by Sections 1. Weekly Pharmaceutical Sector Performance - The pharmaceutical and biotechnology sector has shown a year-to-date increase of 22.99%, outperforming the CSI 300 index by 5.38 percentage points [9] - The sector's valuation as of November 14, 2025, is 30.89 (PE, TTM), with a premium of 129.74% over the CSI 300 index [10] 2. Industry Events/Policy Overview - On November 14, 2025, the National Bureau of Statistics reported a stable economic performance, with industrial production increasing by 4.9% year-on-year [17] - The People's Bank of China reported an increase of 14.97 trillion yuan in RMB loans in the first ten months of 2025 [17] 3. Industry Investment Strategy - The report highlights the active business development (BD) transactions in the innovative drug sector, with significant collaborations and licensing agreements, such as the partnership between Sainty Biotech and Eli Lilly [19] - The report suggests a focus on the recovery of the medical device and traditional Chinese medicine sectors, as well as the ongoing improvement in the innovative drug industry chain [22][28] 4. Recommended Stocks - Recommended stocks include: - **Hengrui Medicine**: Expected to achieve rapid growth in both domestic and international markets [29] - **BeiGene**: Anticipated to achieve comprehensive profitability in 2025, with strong performance in its core products [30] - **Innovent Biologics**: Expected to reach a revenue target of 20 billion yuan by 2027 [31] - **Kanglong Chemical**: Projected to see significant revenue growth driven by its innovative products [32] - **WuXi AppTec**: Anticipated to maintain rapid growth in its core business and increase global production capacity [33]

Core Insights - The Medical Health R Index (480016) closed at 7508.88 points, down 0.45%, with a trading volume of 17.774 billion yuan and a turnover rate of 0.67% [1] - Among the index constituents, 16 stocks rose while 33 fell, with Bai Li Tian Heng leading the gainers at 2.32% and Tigermed leading the decliners at 3.42% [1] Index Performance - The top ten constituents of the Medical Health R Index include: - WuXi AppTec (sh603259) with a weight of 13.66%, latest price at 92.32, down 1.54%, and a market cap of 275.46 billion yuan - Hengrui Medicine (sh600276) with a weight of 11.00%, latest price at 61.78, down 0.03%, and a market cap of 410.05 billion yuan - Mindray Medical (sz300760) with a weight of 7.57%, latest price at 206.71, up 0.33%, and a market cap of 250.62 billion yuan - United Imaging Healthcare (sh688271) with a weight of 4.27%, latest price at 134.25, up 0.19%, and a market cap of 110.64 billion yuan - Other notable constituents include Pianzi Shou (sh600436), Yuan Er Fu Ke (sz300015), Kelun Pharmaceutical (sz002422), Xinhecheng (sz002001), Fosun Pharma (sh600196), and Ziji Shenzhou (sh688235) [1] Capital Flow - The Medical Health R Index constituents experienced a net outflow of 2.083 billion yuan from institutional investors, while retail investors saw a net inflow of 1.545 billion yuan [1] - Detailed capital flow for specific stocks shows: - Kelun Pharmaceutical (sz002422) had a net inflow of 23.33 million yuan from institutional investors but a net outflow from retail investors - Tongce Medical (600763) and Yirui Technology (688301) also showed mixed capital flows with varying net inflows and outflows [2]

Group 1: Report Summary - The report analyzes the investment value of Zhang Jintao, a fund manager at Huabao Fund, with a focus on his performance in managing Huabao Pharmaceutical Biology A [1][4]. - Zhang Jintao has developed an investment methodology that combines industry cycle analysis with a multi - dimensional framework, showing strong adaptability in the current era of global opportunities for Chinese innovative drugs [5][20]. - Since Zhang Jintao took office, Huabao Pharmaceutical Biology A has achieved above - average returns among pharmaceutical theme funds, outperforming nearly 80% of its peers, with relatively strong offensive capabilities [4][16]. Group 2: Fund Manager Information 2.1 Fund Manager Introduction - Zhang Jintao has worked in multiple financial institutions, including Huatai United Securities, ABC Fortune Fund, etc. He joined Huabao Fund in April 2021 and has served as the fund manager of multiple funds since May 2021 [4][10]. 2.2 Management Product Introduction 2.2.1 Representative Product - Zhang Jintao has managed Huabao Pharmaceutical Biology A (240020.OF) since May 7, 2021, with a total scale of 629 million yuan as of September 30, 2025 [11]. 2.2.2 Representative Product Net Value Performance - After Zhang Jintao took office, excluding the 3 - month construction period, Huabao Pharmaceutical Biology A significantly outperformed the All - Index Pharmaceutical Index, achieving a cumulative positive excess return of 40.27% [12]. - In terms of performance among peers, it ranks in the upper - middle position, but its risk - control indicators such as volatility are relatively weak. Overall, it still has good cost - effectiveness [16]. Group 3: Fund Manager Investment Ability Analysis 3.1 Investment Scope - Guided by Industry Cycle and Anchored by Market Value Space - Zhang Jintao's investment system is based on a deep understanding of the "five - year cycle" of the pharmaceutical industry. He believes that the Chinese innovative drug industry has entered the stage of results realization after a long - term R & D investment period [21]. - He has constructed a "policy - industry - valuation" three - dimensional decision - making framework. The policy dimension focuses on understanding policy intentions; the industry dimension focuses on verifying industry and company fundamentals; the valuation dimension calculates the long - term target market value to evaluate risk - return ratios [21][22]. 3.2 Holding Characteristics - Portfolio Construction Highlights Industry Thinking - Zhang Jintao highly concentrates on the innovative drug sector, aiming to obtain alpha returns within the innovative drug industry by focusing on companies with upcoming blockbuster products or in the rapid - volume - growth stage [20][30]. - He also strategically allocates about 8% of the portfolio to the CXO sector as a supplement and risk - hedge. His average holding period is about 1 - 2 years, and he emphasizes dynamic adjustment [30]. 3.3 Operational Characteristics - Keeping Pace with the Times and Dynamically Optimizing - Zhang Jintao maintains a high stock position, believing that it is difficult to obtain excess returns through position timing in the pharmaceutical industry. Instead, he focuses on stock selection [35]. - The portfolio's turnover mainly comes from the optimization of non - core positions. The top ten heavy - holding stocks remain relatively stable, while the tail positions are adjusted more frequently to track new industry trends [35]. - The holding concentration is adjusted dynamically according to the industry stage, with a relatively dispersed strategy in the early stage and a gradually increasing concentration as the industry trend becomes clearer [35]. Group 4: Conclusion - Zhang Jintao's investment methodology combines industry - level strategic judgment with individual - stock tactical selection, showing strong adaptability and viability in the context of the global opportunities for Chinese innovative drugs [45][46]. - Huabao Pharmaceutical Biology A, under his management, has achieved good performance among pharmaceutical theme funds, with relatively strong offensive capabilities but slightly weaker defensiveness [44].

Core Insights - Lianyungang is enhancing its business environment through innovative services and supportive government policies, aiming to create a more favorable atmosphere for enterprises [1][9] Group 1: Logistics and Trade - Lianyungang is actively innovating in logistics to reduce costs and improve efficiency, with 772 international freight trains operated from January to October this year [2] - The city has established six premium freight train routes covering Central Asia and Europe, significantly expanding its service reach [2] - A new data corridor between Lianyungang and Horgos is being developed to enhance connectivity and efficiency in the New Eurasian Land-Sea Corridor, reducing cargo handling time from 30 hours to under 5 hours, achieving an overall efficiency increase of 80% [3] Group 2: Regulatory Reforms - The city has implemented a "comprehensive inspection once" reform, reducing redundant inspections by 12,710 times this year, a decrease of 46.59%, thus alleviating the burden on enterprises [6] - Lianyungang has streamlined environmental approval processes, allowing a company to complete necessary permits in just 15 days, significantly faster than previous timelines [4] Group 3: Pharmaceutical Industry - The "Chinese Medicine Port" in Lianyungang is fostering a robust pharmaceutical ecosystem, attracting companies like Shenzhen Beimei Pharmaceutical, which established a children's medicine production base [7] - The economic development zone has developed a "4+N" industrial system, with the new pharmaceutical industry being a key pillar, housing major companies and becoming a significant base for innovative drugs and exports [7][8] Group 4: Government Initiatives - The local government is focused on continuous improvement of the business environment, with a dedicated leadership group and regular meetings to address optimization efforts [10] - Lianyungang is enhancing administrative efficiency through standardized processes and a unified service platform, aiming to improve the overall experience for businesses [11][12]

Core Viewpoint - Heng Rui Medicine (01276) has seen a stock price increase of nearly 3%, currently trading at 72.35 HKD, following the announcement of receiving clinical trial approval for its drug, Fumaric Acid Tegeline Injection, from the National Medical Products Administration [1] Group 1: Company Developments - On November 17, Heng Rui Medicine announced that it received the clinical trial approval notice for Fumaric Acid Tegeline Injection from the National Medical Products Administration [1] - Fumaric Acid Tegeline Injection is a μ-opioid receptor (MOR) biased small molecule agonist, set to be approved for domestic market launch in January 2024, marking it as China's first independently developed Class 1 opioid analgesic innovation drug [1] - The company has invested approximately 200 million RMB in the research and development of Fumaric Acid Tegeline Injection to date [1] Group 2: Market Context - A similar product, Oliceridine (brand name: Olinvyk), developed by Trevena, was approved for sale in the United States in 2020 [1] - Jiangsu Enhua Pharmaceutical Co., Ltd. has obtained exclusive licensing from Trevena for Oliceridine, which was approved for sale in China in May 2023, although no sales data has been reported yet [1]

Core Viewpoint - Heng Rui Medicine (600276) has seen a nearly 3% increase in stock price, currently trading at 72.35 HKD, following the announcement of clinical trial approval for its drug, Fumaric Acid Tegeline Injection, by the National Medical Products Administration of China [1] Group 1: Company Developments - On November 17, Heng Rui Medicine announced that it received the clinical trial approval notice for Fumaric Acid Tegeline Injection from the National Medical Products Administration [1] - Fumaric Acid Tegeline Injection is a μ-opioid receptor (MOR) biased small molecule agonist, set to be approved for domestic market launch in January 2024, marking it as China's first independently developed Class 1 opioid analgesic innovation drug [1] - The company has invested approximately 200 million RMB in the research and development of Fumaric Acid Tegeline Injection to date [1] Group 2: Market Context - The drug has a comparable product, Oliceridine (brand name: Olinvyk), developed by Trevena, which was approved for sale in the United States in 2020 [1] - Jiangsu Enhua Pharmaceutical Co., Ltd. has obtained exclusive licensing from Trevena for Oliceridine, which was approved for sale in China in May 2023, although no sales data has been reported yet [1]