Group 1 - The core viewpoint of the article highlights that on October 30, among the 31 primary industries tracked by Shenwan, 12 industries experienced net financing inflows, with the pharmaceutical and biotechnology sector leading with a net inflow of 1.088 billion yuan [1] - Other industries with significant net financing inflows include non-ferrous metals, chemicals, automotive, agriculture, forestry, animal husbandry, and fishery, as well as transportation [1] Group 2 - On the same day, 1,700 individual stocks received net financing inflows, with 191 stocks having inflows exceeding 30 million yuan [1] - Notably, 42 stocks had net financing inflows surpassing 100 million yuan, with WuXi AppTec receiving the highest net inflow of 728 million yuan [1] - Other stocks with significant net financing inflows include Tianji Co., Lanke Technology, Yiwei Lithium Energy, Antai Technology, Tianqi Lithium, and Northern Rare Earth [1]

Summary of Wuxi Apptec Conference Call Company Overview - **Company**: Wuxi Apptec - **Industry**: Pharmaceutical R&D services - **Market Position**: Largest chemical drug contract research, development, and manufacturing organization (CRDMO) in China [12][13] Key Financial Highlights - **Q3 2025 Performance**: - Revenue: Rmb12.1 billion, up 15.3% YoY and 8.2% QoQ, exceeding estimates [2] - Net Profit: Rmb3.5 billion, up 53.3% YoY, also beating estimates [2] - Adjusted non-IFRS net profit: Rmb4.2 billion, up 42.0% YoY [2] - Adjusted non-IFRS gross margin: 44.5%, improved by 6.1 percentage points YoY [2] - Backlog for continuing operations: Rmb59.9 billion, a strong 41.2% YoY increase [2] Business Segment Performance - **Wuxi Chemistry**: - Revenue: Rmb9.7 billion, up 15.3% YoY and 8.6% QoQ - TIDES business revenue: Rmb2.8 billion, up 91.2% YoY, contributing 29% to Wuxi Chemistry revenue [3] - TIDES backlog: Increased by 17.1% YoY [3] - **Wuxi Testing**: - Revenue: Rmb1.5 billion, up 2.1% YoY and 6.1% QoQ - CRO/SMO segment revenue: Down 6.4% YoY [3] - **Wuxi Biology**: - Revenue: Rmb696 million, up 5.9% YoY [3] Geographic Performance - **US Market**: Key growth driver with revenue up 31.9% YoY to Rmb22.2 billion [3] - **Europe**: Revenue increased by 13.5% YoY to Rmb3.8 billion [3] - **China**: Returned to positive growth with revenue of Rmb5.0 billion, up 0.5% YoY [3] Future Guidance and Strategic Moves - **Revenue Guidance for 2025**: Raised from Rmb42.5-43.5 billion to Rmb43.5-44.0 billion [4] - **Continuing Revenue Growth Guidance**: Increased from 13%-17% to 17%-18% YoY [4] - **Divestiture**: Announced divestiture of clinical CRO/SMO business for Rmb2.8 billion, allowing focus on core CRDMO business [4] Valuation and Investment Outlook - **Price Target**: Increased to HK$138.4 from HK$136.1, rated as "Buy" [5] - **EPS Forecast Adjustments**: Increased by 23.4% for 2025, with slight adjustments for subsequent years [5][10] - **Market Capitalization**: Approximately HK$326 billion (US$42.0 billion) [7] Risks and Considerations - **Key Risks**: Include potential project delays, geopolitical uncertainties, and lower-than-expected R&D spending by pharmaceutical companies [13] - **Market Sentiment**: Positive outlook with expectations of improved global biopharma funding [15] Additional Insights - **Analyst Ratings**: 12-month rating of "Buy" with a forecast stock return of 27.1% [11][19] - **Market Performance**: Stock price as of October 24, 2025, was HK$110.50, within a 52-week range of HK$121.40-45.65 [7]

Core Viewpoint - The report highlights significant shifts in the holdings of actively managed equity funds in the third quarter of 2025, with a notable rise in technology stocks and a decline in traditional consumer stocks like Kweichow Moutai [3][4][6]. Group 1: Fund Holdings Overview - As of September 2025, the total assets under management in the public fund industry reached 35.85 trillion yuan, a quarter-on-quarter increase of 6.30% [3]. - The top three holdings of actively managed equity funds are dominated by technology companies, with CATL reclaiming the top position, surpassing Tencent Holdings [3][4]. - Kweichow Moutai's total market value held by active equity funds decreased to 29.958 billion yuan, down from 30.616 billion yuan in the previous quarter, dropping from third to seventh place among top holdings [3][6]. Group 2: Technology Sector Performance - The technology sector emerged as the primary focus for public fund investments, with seven out of the top ten holdings being technology-related companies [4]. - Notable performers include Xinyi Technology and Zhongji Xuchuang, both of which ranked among the top three heavyweights [4]. - The current market trend indicates a strong and sustained interest in technology stocks, driven by China's economic transformation towards a hard-tech model [4][5]. Group 3: Challenges in Traditional Consumer Sector - The traditional consumer sector, particularly the liquor industry, is facing significant challenges, with 59.7% of liquor companies reporting a decrease in operating profits [6][7]. - The white liquor market is undergoing a deep adjustment phase due to policy changes, consumption structure transformation, and intense competition [6][7]. - The overall sales volume in the liquor industry is expected to decline by over 20% year-on-year, reflecting macroeconomic fluctuations and slow recovery in consumer spending [7][8]. Group 4: Fund Manager Strategies - The top five stocks with increased holdings include Zhongji Xuchuang, Industrial Fulian, ST Huatuo, Dongshan Precision, and Hanwha Technology, all of which are technology companies [9][10]. - Conversely, the top stocks with reduced holdings include Shenghong Technology and Haiguang Information, with significant sell-offs attributed to internal management's actions [11]. - Despite CATL being the top holding, it also appears on the list of reduced holdings, indicating a complex strategy among institutional investors [11].

Group 1 - The Hu Run Research Institute released the "2025 Hu Run Rich List," featuring 1434 entrepreneurs with personal wealth exceeding 5 billion RMB, a 31% increase from last year [1] - Among the 1400+ entrepreneurs, 60% were not on the list ten years ago, with new faces primarily from the industrial products, health, and consumer goods sectors, while dropouts mainly came from the real estate sector [1] Group 2 - In the biopharmaceutical sector, notable wealth growth was observed among entrepreneurs in the innovative drug space, particularly in cancer treatment [1] - Zhong Huijuan, Chairman and CEO of Hansoh Pharmaceutical, and her daughter Sun Yuan, with a wealth of 141 billion RMB, replaced Zong Fuli of Wahaha Group (87.5 billion RMB) as the new "China's richest woman" [1] - Other significant wealth increases include Xie Bing of China National Pharmaceutical Group, whose wealth grew by over 40 billion RMB, and Sun Piaoyang of Hengrui Medicine (600276), whose wealth increased by over 30 billion RMB [1] - Additional mentions include Lou Jing of 3SBio, returning to the list with a wealth of 15 billion RMB, and Li Ge of WuXi AppTec (603259), whose wealth grew by nearly 20 billion RMB [1] - New entrants include Qi Yi Jia, focusing on neurodegenerative diseases with a wealth of 44 billion RMB, and the couple Li Huanxiong and Wu Meirong of Yipinhong (300723), returning with a wealth of 18 billion RMB [1] - Hu Kaijun of Yuan Da also saw his wealth increase by over 20 billion RMB [1]

Investment Rating - The industry investment rating is maintained at "Outperform the Market" [1] Core Views - In Q3 2025, the overall heavy holdings of public funds in the pharmaceutical sector decreased slightly, with a focus on innovative drugs and CXO holdings becoming more concentrated [2][6] - The total scale of pharmaceutical funds reached 434.6 billion yuan, with a quarter-on-quarter increase of 28.4%, indicating a growing interest in the sector [19] - The proportion of passive funds in the pharmaceutical sector has increased significantly from 18% in Q1 2018 to 52% in Q3 2025, reflecting a shift in investment strategies [19] Summary by Sections Overall Holdings - The heavy holdings ratio of all public funds in the pharmaceutical sector was 9.7%, down 0.1 percentage points quarter-on-quarter, with an overweight ratio of 3.3% [2][9] - The heavy holdings ratio of all active public funds in the pharmaceutical sector was 10.8%, down 0.3 percentage points quarter-on-quarter, with an overweight ratio of 4.36% [2][9] - The heavy holdings ratio of all non-pharmaceutical funds in the pharmaceutical sector was 4.4%, down 0.2 percentage points quarter-on-quarter, with an underweight ratio of -2.03% [2][9] Fund Structure - The proportion of active funds in the pharmaceutical sector decreased slightly, with active pharmaceutical funds accounting for 31% of the total heavy holdings market value, down 0.5 percentage points [3][13] - The total market value of pharmaceutical funds was 434.6 billion yuan, with active funds at 206.7 billion yuan and passive funds at 228 billion yuan [19] Heavy Holdings by Fund Type - The overall structure of holdings showed an overweight in innovative drugs and CXO, while traditional Chinese medicine and high-value consumables were underweighted [6] - The top three sectors with increased holdings among all public funds were CXO, Bio-Pharma, and online pharmacies, while medical devices, traditional Chinese medicine, and specialty chains saw declines [6] Heavy Holdings of Individual Stocks - The top five stocks by total market value held by all public funds included WuXi AppTec (45 billion yuan), Hengrui Medicine (42.4 billion yuan), and Innovent Biologics (21.7 billion yuan [6] - The top three stocks with increased holdings among active funds were BeiGene H (+4.8 billion yuan), CanSino Biologics (+4.2 billion yuan), and China National Pharmaceutical Group (+3.9 billion yuan) [6]

Core Viewpoint - WuXi AppTec announced a share reduction plan due to funding needs, which led to a significant drop in stock price and market capitalization, despite strong financial performance in Q3 2025 [1][2] Group 1: Share Reduction Announcement - On October 29, WuXi AppTec announced a share reduction plan, with the actual controller planning to reduce up to 2% of the total share capital, equating to a maximum of 59.6751 million shares [1] - Following the announcement, WuXi AppTec's stock price fell by 8.47% to 97.06 CNY per share, resulting in a market capitalization dropping below 300 billion CNY [1] - If the maximum reduction is executed at the current price, the actual controller could potentially cash out nearly 5.8 billion CNY [1] Group 2: Financial Performance - In Q3 2025, WuXi AppTec reported revenue of 12.057 billion CNY, a year-on-year increase of 15.26%, and a net profit attributable to shareholders of 3.515 billion CNY, up 53.27% [2] - For the first three quarters of 2025, the company achieved total revenue of 32.857 billion CNY, reflecting an 18.61% year-on-year growth, and a net profit of 12.076 billion CNY, which is an 84.84% increase [2] Group 3: Business Segmentation and Growth Drivers - The growth in performance is attributed to a focus on the CRDMO business model and increased efficiency from large-scale projects in late-stage clinical and commercialization phases [2] - Investment income reached 4.099 billion CNY in the first three quarters of 2025, accounting for over 30% of total profit, boosted by the sale of shares in an associated company [2] - The chemical business remains the main revenue driver, generating 25.978 billion CNY in the first three quarters, a 29.28% increase year-on-year [2] Group 4: Order Backlog and Client Distribution - As of September 2025, WuXi AppTec's order backlog for ongoing operations reached 59.88 billion CNY, a significant increase of 41.2% year-on-year [2] - Revenue from U.S. clients was 22.15 billion CNY, up 31.9%, while European clients contributed 3.84 billion CNY, a 13.5% increase, and Chinese clients generated 5.04 billion CNY, a modest growth of 0.5% [2]

Core Viewpoint - The Medical Health R Index (480016) experienced a decline of 2.53% on October 30, closing at 7627.16 points, with a total trading volume of 39.436 billion yuan and a turnover rate of 1.18% [1] Group 1: Index Performance - The index had 8 stocks that rose, with Zai Lab leading at a 2.8% increase, while 42 stocks fell, with WuXi AppTec leading the decline at 8.47% [1] - The top ten constituent stocks of the Medical Health R Index are primarily in the biopharmaceutical sector, with WuXi AppTec holding the largest weight at 14.37% [1] Group 2: Stock Details - WuXi AppTec: Latest price 97.06 yuan, down 8.47%, market cap 289.603 billion yuan [1] - Hengrui Medicine: Latest price 62.88 yuan, down 1.78%, market cap 417.347 billion yuan [1] - Mindray Medical: Latest price 216.69 yuan, down 2.76%, market cap 262.724 billion yuan [1] - United Imaging Healthcare: Latest price 141.03 yuan, down 3.77%, market cap 116.231 billion yuan [1] - Other notable stocks include: - Pien Tze Huang: 177.00 yuan, down 1.02% [1] - Aier Eye Hospital: 12.11 yuan, down 0.49% [1] - Kelun Pharmaceutical: 34.25 yuan, down 1.21% [1] - Changchun High & New Technology: 115.20 yuan, down 2.00% [1] - Fosun Pharma: 28.50 yuan, down 1.42% [1] - New Hope Liuhe: 24.29 yuan, down 0.04% [1] Group 3: Capital Flow - The Medical Health R Index constituents saw a net outflow of 3.222 billion yuan from institutional investors, while retail investors had a net inflow of 2.144 billion yuan [1] - The detailed capital flow indicates that retail investors were more active compared to institutional investors on that day [2]

Market Overview - The medical services sector experienced a decline of 3.33% on October 30, with WuXi AppTec leading the drop [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Stock Performance - Notable gainers in the medical services sector included: - Meinian Health: Closed at 5.57, up 6.30% with a trading volume of 3.67 million shares and a turnover of 2.059 billion [1] - Nossig: Closed at 64.10, up 3.52% with a trading volume of 90,000 shares and a turnover of 577 million [1] - Major decliners included: - WuXi AppTec: Closed at 97.06, down 8.47% with a trading volume of 1.2312 million shares and a turnover of 12.061 billion [2] - Ruizhi Pharmaceutical: Closed at 11.07, down 4.82% with a trading volume of 197,200 shares and a turnover of 22 million [2] Capital Flow - The medical services sector saw a net outflow of 1.594 billion from institutional investors, while retail investors contributed a net inflow of 720 million [2] - The sector's capital flow indicates a mixed sentiment, with institutional investors pulling back while retail investors showed interest [2] Individual Stock Capital Flow - Meinian Health had a net inflow of 423 million from institutional investors, while it faced a net outflow of 222 million from retail investors [3] - Innovation Medical recorded a net inflow of 12.4 million from institutional investors, with a net outflow of 180 million from retail investors [3] - WuXi AppTec experienced significant selling pressure, with a net outflow of 4.243 million from retail investors [3]

药明康德（603259）(02359)跌超6%，截至发稿，跌6.03%，报105.9港元，成交额6.52亿港元。 消息面上，10月29日晚，药明康德公告，公司于2025年10月29日收到实际控制人控制的股东发出的《告 知函》。因自身资金需求，公司实际控制人控制的股东计划根据市场情况自本公告披露日起15个交易日 后的3个月内，通过集中竞价和/或大宗交易方式减持公司A股股份，减持股份数量不超过公司总股本的 2%，即合计不超过59675143股。 ...

Core Points - WuXi AppTec (603259) announced that its controlling shareholder plans to reduce its A-share holdings by up to 2% of the total share capital, which amounts to a maximum of 59,675,143 shares [1] - The reduction will occur through centralized bidding and/or block trading within three months after the announcement, starting 15 trading days from the date of the notice [1] - The shareholder intends to limit the total number of shares sold through centralized bidding to no more than 1% of the total share capital, equating to a maximum of 29,837,571 shares [1] - For block trading, the total number of shares sold will also be capped at 2% of the total share capital, which is the same maximum of 59,675,143 shares [1] - The buyer of shares through block trading will be restricted from transferring the acquired shares for six months [1]