Core Viewpoint - Nomura's report indicates that WuXi AppTec's strong R&D capabilities enable it to seize market opportunities, reaffirming a "Buy" rating and raising the target price from HKD 130.63 to HKD 132.8 [1] Group 1: Company Performance - As of the end of fiscal year 2025 (September), the company has undertaken a total of 3,430 projects, which is approximately three times the number in 2021 [1] - The breakdown of projects includes 2,889 in preclinical, 374 in Phase I, 87 in Phase II, 80 in Phase III, and commercial stages [1] - The total order backlog reached CNY 59.88 billion, with new orders signed in the third quarter increasing by 32% year-on-year to CNY 15.3 billion [1]

Core Viewpoint - The Hong Kong innovative drug concept stocks experienced a decline, with notable drops in several key companies [1] Company Performance - WuXi AppTec saw a decline of over 3% [1] - Innovent Biologics and Hansoh Pharmaceutical both dropped by more than 2% [1] - China National Pharmaceutical Group and CSPC Pharmaceutical Group fell by over 1% [1]

Summary of Key Points from China Healthcare Conference and Tour Industry Overview - **Industry**: China Healthcare - **Focus**: Innovation, Globalization, and Recovery in Medical Technology (Medtech) Core Insights 1. **Innovation Hub**: China is establishing itself as a global innovation hub, particularly in novel modalities such as IO bispecific, ADC, and siRNA [1][2] 2. **Medtech Globalization**: Leading Chinese medical equipment companies are moving beyond simple exports to establish localized production and direct sales networks [1][3] 3. **IVD Market Recovery**: The domestic In-Vitro Diagnostics (IVD) market is showing signs of bottoming out, with hospitals incentivized to switch to cost-effective domestic solutions due to pricing pressures [1][4] 4. **CXO Sector Performance**: Strong orders in the CXO sector are sustained, with potential price recovery in domestic clinical CROs expected to improve gross margins in 2026 [1][5] Company-Specific Highlights 1. **Abbisko (2256.HK)** - Focus on clinical progress of irpagratinib and ABSK043, with a strong pipeline that remains undervalued in the market [15] - Irpagratinib's Phase 3 study for HCC is on track, and ABSK043 shows promise in combination therapies [16][17] 2. **Huadong Medicine (000963.SZ)** - Innovative drugs contributed Rmb1,675 million in sales for 9M25, up 62% YoY, with a focus on oncology and metabolic diseases [19] - Ongoing discussions for potential out-licensing of GLP-1 candidates and ADC [20] 3. **MicroPort MedBot (2252.HK)** - YTD overseas orders exceeded 70, indicating rapid commercialization in international markets [23] - Targeting cash flow breakeven in 2026, with a focus on increasing revenue from high-margin consumables [24][25] 4. **Shanghai Fosun Pharma (2196.HK)** - Optimistic about the inclusion of CAR-T therapy Yescarta in the innovative drug catalog of commercial insurance, expected to accelerate coverage [28] - Increasing R&D investment by 20% YoY, focusing on new modalities like radiopharmaceuticals [30] 5. **Henlius (2696.HK)** - HLX43 shows promising data in NSCLC, with plans for multiple registrational trials [31][33] - Developing a new platform for radiopharmaceuticals and small nucleic acids [32] 6. **Shenzhen Mindray (300760.SZ)** - Aiming to double its current 10% market share in IVD within three years, leveraging comprehensive lab solutions [37] - Global strategy focuses on localization and diversification of manufacturing [38] 7. **Tigermed (3347.HK)** - Positive revenue growth guidance for 2025, with strong orders in Phase 1/2 trials [40][42] - Expanding overseas operations, with significant growth in the US and Japan [43] 8. **United Imaging (688271.SS)** - Achieving robust growth in developed markets, with a CAGR of 50% for overseas markets expected [44][48] - Strong positioning in high-end MRI and molecular imaging sectors [47] Additional Insights - **siRNA Modality**: The siRNA field is at an inflection point, attracting significant interest from multinational corporations due to its long-dosing interval potential [2][9] - **Market Dynamics**: The domestic IVD market is experiencing a structural shift favoring domestic leaders, with hospitals seeking cost-effective solutions [4][14] - **Globalization Trends**: Chinese medtech firms are successfully executing globalization strategies, with significant growth in emerging markets [3][13] This summary encapsulates the key takeaways from the China Healthcare Conference and Tour, highlighting the industry's focus on innovation, globalization, and recovery, along with specific insights into leading companies within the sector.

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5] Core Insights - The pharmaceutical sector has underperformed the overall market, with a significant decline in various sub-sectors, including a 6.88% drop in the biotechnology sector [1][32] - Hidradenitis Suppurativa (HS) is identified as a chronic, recurrent inflammatory skin disease with a low prevalence in China and the U.S., highlighting the potential market for treatment options [2][10] - The report emphasizes the increasing market share of new biologics targeting IL-17A and IL-17A/F, which are expected to outperform traditional therapies like Adalimumab [17][18][22] Summary by Sections Market Performance - The overall A-share market declined by 4.32%, with the biotechnology sector falling by 6.88%, indicating a weaker performance compared to the broader market [1][32] - Specific declines were noted in chemical pharmaceuticals (7.02%), biological products (7.46%), and medical services (6.90%) [1][32] Hidradenitis Suppurativa (HS) Overview - HS affects approximately 0.03% of the population in China, with around 400,000 cases, and has been included in the rare disease directory [2][10] - The disease's complex pathogenesis involves multiple immune pathways, making it a target for various therapeutic approaches [11][27] Investment Strategy - The report suggests focusing on undervalued stocks in the medical device and pharmacy sectors, which have already priced in risks from policy changes [42][43] - It highlights the potential for growth in the CXO sector, particularly in CDMO and clinical CRO segments, as they continue to show strong performance despite market challenges [42][43] Recommended Stocks - The report lists several companies with strong growth potential, including Mindray Medical, WuXi AppTec, and Aier Eye Hospital, all rated as "Outperform" [4][44] - Mindray Medical is noted for its robust R&D and international expansion, while WuXi AppTec is recognized for its comprehensive drug development services [44]

两市全天特大单净流出96.75亿元，其中25股特大单净流入超2亿元，中兴通讯特大单净流入10.02亿元， 特大单净流入资金居首。 沪指今日收盘上涨0.29%。资金面上看，沪深两市全天特大单净流出96.75亿元，共计1964股特大单净流 入，2587股特大单净流出。 从申万一级行业来看，今日有8个行业特大单资金净流入，电子特大单净流入规模居首，净流入资金 18.25亿元，该行业指数今日上涨0.26%，其次是轻工制造，今日上涨1.09%，净流入资金为6.25亿元， 净流入资金居前的还有房地产、基础化工等行业。 | 002428 | 云南锗业 | 26.01 | 3.92 | 2.30 | 有色金属 | | --- | --- | --- | --- | --- | --- | | 003009 | 中天火箭 | 58.83 | 10.00 | 2.19 | 国防军工 | | 001309 | 德明利 | 214.18 | -1.46 | 2.16 | 电子 | | 000801 | 四川九洲 | 16.37 | 6.30 | 2.09 | 家用电器 | 特大单净流出资金排名 所属行业来看，上述特大单净流入资金居前 ...

Core Viewpoint - WuXi AppTec (603259.SH) announced a significant change in shareholder equity, with a reduction of 11,827,898 shares, representing 0.40% of the total share capital as of the announcement date [1] Group 1: Shareholder Changes - The company received a notification regarding the reduction of shares held by certain shareholders from 547,539,294 shares to 535,711,396 shares, decreasing their ownership percentage from 18.35% to 17.95% [1][2] - The reduction in shareholding occurred between November 20, 2025, and November 25, 2025, with a weighted average price of 93.571 yuan per share during this period [2] - The total amount of shares sold by the shareholders amounted to approximately 1.107 billion yuan [2]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **China A-shares market**, specifically the **CSI300 index** and its outlook for 2026. Core Insights and Arguments 1. **CSI300 Target Projections**: - The base-case target for the CSI300 by the end of 2026 is set at **5,200**, based on a **15.9x** P/E ratio and an estimated EPS of **Rmb328**, reflecting a **15% year-on-year growth** [1][4][5]. - Bear-case and bull-case targets are **4,000** and **6,000**, respectively [1][5]. 2. **Investment Themes for 2026**: - **Pro-equity "anti-involution" policies** are expected to enhance structural upside in net profit margin (NPM) and return on equity (ROE) for the CSI300, with consensus estimates of **12% NPM** and **11% ROE** [4]. - **AI Infrastructure Growth**: Anticipated capital expenditure growth in AI infrastructure globally will benefit Chinese suppliers, particularly those focused on localization and AI monetization [4]. - **Global Macro Support**: Easing fiscal and monetary policies globally will support offshore sales for listed companies [4]. - **K-shaped Recovery in Consumption**: This recovery is expected to benefit both low-end and luxury consumption sectors [4]. 3. **Downside Risks**: - Potential cuts to consensus EPS estimates for Q4 2025, especially in the **IT** and **Healthcare** sectors [4]. - The continuation of a "high-quality development" approach may dampen mid-range aspirational consumption [4]. - Geopolitical tensions, particularly between the US and China, could pose risks, especially with upcoming elections [4]. 4. **Potential Policy Changes**: - The onset of a non-performing loan (NPL) cycle may lead to new policies aimed at supporting physical properties [4]. - Increased efficiency from AI and digitalization may necessitate enhanced social security coverage due to job dislocations [4]. 5. **Thematic Stock Screens**: - Focus on **IT and Healthcare A-shares** that demonstrate innovation potential, with metrics such as market capitalization and overseas revenue [4]. - Screening for top A-share listings across various sectors including **autos, battery materials, lithium, solar, cement, chemicals, coal, steel, dairy, hogs, liquor, and logistics** [4][10]. Additional Important Insights - The **CSI300 index** is projected to have an implied upside of **17%** from the current level to the base-case target, while the bear-case scenario indicates a **10% downside** [5]. - The report highlights a shift from value to growth stocks expected by early 2026, particularly in the context of the **IT** and **Healthcare** sectors [4]. - The **A-share market** has shown robust margin financing, indicating strong investor confidence [14]. This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the outlook for the China A-shares market and the CSI300 index for 2026.

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5][4]. Core Insights - The pharmaceutical sector has underperformed the overall market, with a significant decline in various sub-sectors, including a 6.88% drop in the biotechnology sector [1][32]. - Hidradenitis Suppurativa (HS) is identified as a chronic, recurrent inflammatory skin disease with a low prevalence in China and the U.S., highlighting the potential market for treatment options [2][10]. - The report emphasizes the increasing market share of new biologics targeting IL-17A and IL-17A/F, which are expected to outperform traditional therapies like Adalimumab [2][18]. Summary by Sections Market Performance - The overall A-share market declined by 4.32%, with the biotechnology sector falling by 6.88%, indicating a weaker performance compared to the broader market [1][32]. - Specific declines were noted in chemical pharmaceuticals (7.02%), biological products (7.46%), and medical services (6.90%) [1][32]. Hidradenitis Suppurativa Treatment Overview - HS affects approximately 0.03% of the population in China, with around 400,000 cases, and has been included in the rare disease directory [2][10]. - First-line treatments primarily involve antibiotics, while second-line therapies include biologics such as Adalimumab and newer agents targeting IL-17A and IL-17A/F [2][10]. Company Earnings Forecast and Investment Ratings - Key companies such as Mindray Medical, WuXi AppTec, and Aier Eye Hospital are rated as "Outperform," with projected net profits for 2024 ranging from 1.4 billion to 116.7 billion CNY [4][42]. - The report highlights the strong growth potential in the CXO sector, particularly in CDMO and clinical CRO services, driven by new orders and emerging business lines [42][43]. Investment Strategy - The report suggests focusing on undervalued stocks in the medical device and pharmacy sectors, which have already priced in various policy risks [42]. - It also emphasizes the importance of monitoring the clinical progress of innovative drugs in overseas markets, as this can significantly impact their commercialization potential [43][42]. Recommended Stocks - Mindray Medical is noted for its strong R&D and sales capabilities, benefiting from domestic healthcare infrastructure development [44]. - WuXi AppTec is recognized for its comprehensive service capabilities across the new drug development chain, poised to benefit from the global outsourcing market [44]. - Aier Eye Hospital is highlighted for its scale and commitment to introducing international standards in eye care [44].

Core Viewpoint - The data indicates significant outflows of capital from various stocks, highlighting potential concerns regarding investor sentiment and market stability [1] Group 1: Major Stocks with Capital Outflows - WuXi AppTec experienced a capital outflow of 367 million yuan [1] - Huadian Technology saw an outflow of 298 million yuan [1] - Lezhi Group had a capital outflow of 254 million yuan [1] - Inspur Information faced an outflow of 248 million yuan [1] - Yongding Holdings recorded an outflow of 245 million yuan [1] - Tianhua New Energy experienced a capital outflow of 211 million yuan [1] - Changxin Bochuang had an outflow of 198 million yuan [1] - Hainan Ruize saw an outflow of 197 million yuan [1] - Sanjiang Shopping recorded a capital outflow of 185 million yuan [1] - Yaowang Technology faced an outflow of 183 million yuan [1] - Tianji Holdings had a capital outflow of 182 million yuan [1] - CATL experienced an outflow of 159 million yuan [1] - BlueFocus Communication Group saw an outflow of 152 million yuan [1] - Industrial and Commercial Bank of China recorded a capital outflow of 151 million yuan [1] - China Film faced an outflow of 148 million yuan [1] - Vanke A experienced a capital outflow of 147 million yuan [1] - Guofeng New Materials saw an outflow of 142 million yuan [1] - Shiji Information recorded a capital outflow of 142 million yuan [1] - Meilixin faced an outflow of 135 million yuan [1] - Zhongwen Online experienced a capital outflow of 134 million yuan [1]

Core Viewpoint - The Hang Seng Index opened with a slight increase of 0.07%, while the Hang Seng Tech Index experienced a minor decline of 0.1% [1] Company Performance - WuXi AppTec saw a decline of over 3% [1] - NIO experienced a drop of more than 2% [1] - Zijin Mining reported an increase of over 2% [1]