Report Information - Report Title: High - frequency Economic Weekly (2025.10.12 - 2025.10.18) [3] - Date: October 18, 2025 [1] - Analysts: Huang Weiping, Lv Qiang, Wang Zheyi [1] 1. Industry Investment Rating No information provided in the report. 2. Core View The report presents an analysis of the economic situation from multiple aspects during the period of 2025.10.12 - 2025.10.18, indicating that the industrial production shows a seasonal rebound, personnel flow increases while freight prices decline slightly, consumption has mixed performance, construction investment is weak but the real - estate market rebounds seasonally, and export port throughput decreases with differentiated shipping indices. Also, various major policy events have occurred during this period [3]. 3. Summary by Directory 3.1. Large - Scale Assets - This week, bond indices generally rose, stock indices generally fell, most commodities declined, and foreign currencies generally appreciated. The ChinaBond 7 - 10 - year China Development Bank Bond Index had the largest weekly increase of 0.33%. The STAR 50 Index had the largest weekly decline of 6.16%. The Nanhua Precious Metals Index had the largest increase of 10.76%, and the Nanhua Energy and Chemicals Index had the largest decline of 3.43%. The Japanese yen had the largest increase against the RMB with a weekly increase of 1.22%, and the US dollar appreciated against the RMB with a weekly increase of 0.05% [3]. 3.2. Industrial Production - Production showed a seasonal rebound. From the upstream, the weekly coal consumption in the national power plant sample area decreased by 1.27% week - on - week. The petroleum asphalt plant operation rate increased by 1.30 percentage points to 35.80% week - on - week, the blast furnace operation rate remained the same as last week at 84.25%, and the crude steel output increased by 7.57% week - on - week. In the real - estate chain, the rebar operation rate increased by 1.35 percentage points to 41.33% week - on - week, the float glass operation rate increased by 0.34 percentage points to 76.65%, and the mill operation rate decreased by 0.49 percentage points to 37.89% week - on - week. In the consumer goods chain, the polyester filament operation rate decreased by 0.03 percentage points to 91.06% week - on - week, the PTA operation rate decreased by 1.92 percentage points to 75.56%, and the methanol operation rate increased by 4.00 percentage points to 84.38% week - on - week. In the automobile chain, the automobile semi - steel tire operation rate increased by 26.21 percentage points to 72.72% week - on - week, and the automobile all - steel tire operation rate increased by 20.56 percentage points to 64.52% week - on - week [3]. 3.3. People and Goods Flow - Personnel flow increased, and freight prices declined slightly. The 7 - day moving average (7DMA) of the national migration scale index increased by 3.25% week - on - week. The 7DMA of the number of domestic flights decreased by 0.66% week - on - week, and the 7DMA of the number of international flights decreased by 0.11% week - on - week. The subway passenger volumes in Beijing, Shanghai, Shenzhen, and Guangzhou all decreased. The 4 - week moving average (4WMA) of the road logistics freight rate index decreased by 0.02% week - on - week, and the total volume was higher than the same period in previous years [3]. 3.4. Consumption - Automobile retail sales declined, and prices showed a mixed performance. The previous - period automobile wholesale decreased by 1.00% year - on - year, and retail increased by 7.00% year - on - year. Both the 4WMA of the wholesale year - on - year growth rate and the 4WMA of the retail year - on - year growth rate declined. The weekly box office of movies decreased by 73% week - on - week, and the 7DMA of the number of movie - goers decreased by 73% week - on - week. Agricultural product prices showed a mixed performance. The pork price decreased by 2.38% week - on - week, and the vegetable price increased by 0.13% week - on - week [3]. 3.5. Investment - Construction showed weak performance, and the real - estate market rebounded seasonally. The cement storage capacity ratio increased by 1.6 percentage points week - on - week, the cement price index increased by 0.01% week - on - week, and the cement shipment rate decreased by 2.1 percentage points week - on - week. The rebar inventory decreased by 2.4% week - on - week, the proportion of profitable steel mills nationwide decreased by 0.9 percentage points week - on - week, and the apparent demand for rebar decreased by 39.4% week - on - week. Overall, the terminal demand for construction was weak. The 7DMA of the commercial housing transaction area in 30 large and medium - sized cities increased by 171.0% week - on - week. By city - tier, the commercial housing transaction areas in first - tier, second - tier, and third - tier cities all increased. The 7DMA of the second - hand housing transaction area in 16 cities increased by 165.6% week - on - week, and the national second - hand housing listing price index decreased by 0.1% week - on - week. The land transaction area in 100 large and medium - sized cities increased, and the land transaction premium rate decreased week - on - week [3]. 3.6. Export - Port throughput decreased, and shipping indices showed a mixed performance. The weekly port cargo throughput decreased by 8.4% week - on - week, and the container throughput decreased by 6.1% week - on - week. The Baltic Dry Index (BDI) increased by 6.87% week - on - week, the Shanghai Containerized Freight Index (SCFI) increased by 12.92% week - on - week, and the China Containerized Freight Index (CCFI) decreased by 4.11% week - on - week [3]. 3.7. Major Policies/Events - On October 13, the year - on - year export in September 2025 was 8.3%, exceeding expectations. On October 14, China imposed countermeasures on 5 US subsidiaries of South Korea's Hwa Ocean Co., Ltd. On October 14, the central bank announced a 6 - month repurchase of 600 billion yuan on October 15. On October 15, the year - on - year growth rates of CPI and PPI improved moderately. On October 15, the year - on - year growth rate of the stock of social financing decreased. On October 17, the central government allocated 500 billion yuan from the local government debt balance limit to local governments [3].

Revenue and Expenditure Overview - In the first three quarters of 2025, the national general public budget revenue reached 163,876 billion yuan, a year-on-year increase of 0.5%[5] - National general public budget expenditure was 208,064 billion yuan, with a year-on-year growth of 3.1%[5] - By September 2025, the completion rate of general public budget revenue was 68.9%, slightly below the five-year average of 69.9%[6] Fiscal Trends - General fiscal revenue showed a year-on-year increase of 3.2% in September 2025, rebounding by 2.9 percentage points from August[6] - General fiscal expenditure in September 2025 grew by 2.3% year-on-year, a decline of 3.8 percentage points compared to August[6] - The issuance of new special bonds reached approximately 10.3 trillion yuan by September 28, 2025, with an issuance progress of 87%[8] Government Debt and Financing - The net financing of government bonds, including new general and special bonds, totaled 10.3 trillion yuan, which is 2.8 trillion yuan more than the previous year[8] - The issuance of new special bonds was 36,612 billion yuan, with an issuance progress of 83%, lagging behind the same period in 2024 by over 6 percentage points[8] - A new policy-oriented financial tool of 500 billion yuan was established by the end of September 2025, with over 100 billion yuan already allocated to sectors like digital economy and artificial intelligence by mid-October[11] Budget Completion and Spending - The completion rate for general fiscal expenditure in September 2025 was 9.7%, consistent with the five-year average[26] - Government fund expenditure continued to decline, with a year-on-year increase of only 0.4% in September 2025, down over 19 percentage points from August[34] - The completion rate for government fund income in September 2025 was 6.8%, higher than the 5.7% in 2024 but below the five-year average of 7.1%[18]

Industry Investment Rating The provided content does not mention the industry investment rating. Core Viewpoints The report analyzes the economic situation from multiple aspects, including industrial production, people and freight flow, consumption, investment, export, and the performance of major asset classes. It points out that industrial production shows seasonal recovery, people flow increases while freight prices decline slightly, consumption has mixed performance, construction shows weakness while the real - estate market recovers seasonally, port throughput decreases, and shipping indices are differentiated. Also, major asset classes show distinct trends with bond indices rising, stock indices falling, most commodities dropping, and foreign currencies appreciating [1]. Summary by Directory 1. Major Asset Classes - This week, bond indices generally rose, stock indices generally fell, most commodities declined, and foreign currencies generally appreciated. Among them, the ChinaBond 7 - 10 - year China Development Bank Bond Index rose the most, with a weekly increase of 0.33%; the STAR 50 Index fell the most, with a weekly decline of 6.16%. The Nanhua Precious Metals Index rose the most among commodities, with a gain of 10.76%, and the Nanhua Energy and Chemicals Index fell the most, with a decline of 3.43%. Foreign currencies appreciated against the RMB, with the Japanese yen having the largest increase, a weekly gain of 1.22%, and the US dollar appreciating against the RMB, with a weekly gain of 0.05% [1]. 2. Industrial Production - Production shows seasonal recovery. In the upstream, the weekly coal consumption in the national power plant sample area decreased by 1.27% week - on - week, the operating rate of petroleum asphalt plants increased by 1.30 pcts to 35.80% week - on - week, the blast furnace operating rate remained flat at 84.25% compared with last week, and the crude steel output increased by 7.57% week - on - week. In the real - estate chain, the operating rate of rebar production increased by 1.35 pcts to 41.33% week - on - week, the operating rate of float glass increased by 0.34 pcts to 76.65% week - on - week, and the mill operation rate decreased by 0.49 pcts to 37.89% week - on - week. In the consumer goods chain, the operating rate of polyester filament decreased by 0.03 pcts to 91.06% week - on - week, the operating rate of PTA decreased by 1.92 pcts to 75.56% week - on - week, and the operating rate of methanol increased by 4.00 pcts to 84.38% week - on - week. In the automotive chain, the operating rate of automobile semi - steel tires increased by 26.21 pcts to 72.72% week - on - week, and the operating rate of automobile all - steel tires increased by 20.56 pcts to 64.52% week - on - week [1]. 3. People and Freight Flow - People flow increased, while freight prices declined slightly. The 7 - day moving average (7DMA) of the national migration scale index increased by 3.25% week - on - week. The 7DMA of the number of domestic flights decreased by 0.66% week - on - week, and the 7DMA of the number of international flights decreased by 0.11% week - on - week. The subway passenger volumes in Beijing, Shanghai, Shenzhen, and Guangzhou all decreased. In terms of freight flow, the 4 - week moving average (4WMA) of the road logistics freight rate index decreased by 0.02% week - on - week, but the total volume was higher than the same period in previous years [1]. 4. Consumption - Automobile retail sales showed a decline, and prices were differentiated. The previous period's automobile wholesale sales decreased by 1.00% year - on - year, and retail sales increased by 7.00% year - on - year. The 4WMA of the wholesale and retail year - on - year growth rates both declined. This period's movie box office decreased by 73% week - on - week, and the 7DMA of the number of movie - goers decreased by 73% week - on - week. Agricultural product prices were differentiated, with pork prices decreasing by 2.38% week - on - week and vegetable prices increasing by 0.13% week - on - week [1]. 5. Investment - Construction showed weakness, while the real - estate market recovered seasonally. The cement storage capacity ratio increased by 1.6 pcts week - on - week, the cement price index increased by 0.01% week - on - week, and the cement shipping rate decreased by 2.1 pcts week - on - week. The rebar inventory decreased by 2.4% week - on - week, the proportion of profitable steel mills nationwide decreased by 0.9 pcts week - on - week, and the apparent demand for rebar decreased by 39.4% week - on - week. Overall, the terminal demand for construction was weak. The 7DMA of the commercial housing transaction area in 30 large and medium - sized cities increased by 171.0% week - on - week. By city - tier, the commercial housing transaction areas in first - tier, second - tier, and third - tier cities all increased. The 7DMA of the second - hand housing transaction area in 16 cities increased by 165.6% week - on - week, and the national second - hand housing listing price index decreased by 0.1% week - on - week. The land transaction area in 100 cities increased, and the land transaction premium rate decreased week - on - week [1]. 6. Export - Port throughput decreased, and shipping indices were differentiated. This period's port cargo throughput decreased by 8.4% week - on - week, and the container throughput decreased by 6.1% week - on - week. The BDI index increased by 6.87% week - on - week, the SCFI index increased by 12.92% week - on - week, and the CCFI index decreased by 4.11% week - on - week [1].

Investment Rating - The report indicates a cautious outlook for the home appliance sector, with the sector underperforming compared to the CSI 300 index, which remained stable while the home appliance index fell by 1.5% [2][3]. Core Insights - Haier Group and Alibaba have signed a comprehensive strategic cooperation agreement focusing on AI and cloud technologies, advanced manufacturing, e-commerce, and globalization, aiming to create a new digital industrial ecosystem [7][48]. - JD.com's 11.11 sales event showed impressive results, with home appliances and new trend products experiencing significant growth, including a more than 4-fold increase in sales for over 1,000 brands [8][48]. - The report highlights three main investment themes: 1. White goods sector benefiting from favorable real estate policies and high dividend yields, with a recommendation for leading companies like Hisense, Midea, and Gree [2]. 2. Export opportunities driven by large customer orders, recommending companies like Ousheng Electric and Dechang Shares [2]. 3. Core components demand exceeding expectations due to the white goods sector's performance, recommending companies like Huaxiang and Shun'an Environment [2]. Industry Dynamics - The home appliance sector has seen a decline in stock performance, with leading companies like Yitian Intelligent and Aupu Technology showing gains, while companies like Biying and Light Peak Technology faced significant losses [4][3]. - The report notes a rise in raw material prices, particularly copper and aluminum, while stainless steel prices have decreased [9]. - Sales data for cleaning appliances in September showed a significant increase, with robotic vacuum sales up 56.56% and washing machine sales up 61.29% year-on-year [24][30]. Company Updates - Yitian Intelligent announced a tax payment of 5.65 million yuan, which will be accounted for in the current year's financials [42]. - Biying Electric completed a non-trading transfer of shares for its employee stock ownership plan [42]. - Haier Group has engaged in a strategic partnership with Alibaba to enhance its digital capabilities [48].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - After the holiday, the REITs market continued to adjust, but the overall liquidity has bottomed out and rebounded this week, with the most obvious improvement in the affordable housing sector [3]. - The enthusiasm for new subscriptions in the primary market of REITs remains high. The net subscription multiples of Huaxia Zhonghai Commercial REIT and CITIC Construction Investment Shenyang International Software Park REIT have reached new highs [3]. - This week, the CSI REITs Total Return Index fell by 1.44%, outperforming the CSI 300 by 0.78 percentage points and underperforming the CSI Dividend by 2.11 percentage points [4]. 3. Summary by Directory 3.1 Primary Market - A total of 3 single - issue public REITs made new progress this week. E Fund Guangxi Beitou Expressway REIT has been declared, while Huaxia Zhonghai Commercial REIT and CITIC Construction Investment Shenyang International Software Park REIT have completed fundraising [4][15]. - As of October 10, 2025, 18 single - issue REITs have been successfully issued this year, with a issuance scale of 36.34 billion yuan, a year - on - year decrease of 21.5% [4]. 3.2 Secondary Market 3.2.1 Market Review - The CSI REITs Total Return Index closed at 1043.46 points, down 1.44%, outperforming the CSI 300 by 0.78 percentage points and underperforming the CSI Dividend by 2.11 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 7.81%, underperforming the CSI 300 by 6.91 percentage points and outperforming the CSI Dividend by 7.54 percentage points [4]. - By project attribute, equity - based REITs fell by 2.09% this week, and concession - based REITs fell by 1.64%. By asset type, the data center (+0.62%), transportation (-1.56%), environmental protection and water services (-1.70%), and park (-1.74%) sectors performed better [4]. 3.2.2 Liquidity - The average daily turnover rates of equity - based and concession - based REITs this week were 0.39% and 0.36% respectively, an increase of 8.58 and 4.88 basis points from last week. The weekly trading volumes were 366 million and 102 million shares respectively, a week - on - week increase of 28.35% and 15.87% [4][24]. - The affordable housing sector showed the most obvious improvement in liquidity [3]. 3.2.3 Valuation - The ChinaBond valuation yields of equity - based and concession - based REITs are 3.94% and 4.16% respectively. The affordable housing sector has a relatively high valuation [26][28]. 3.3 This Week's News and Important Announcements - On October 13, 2025, the Ministry of Civil Affairs supported the initial cultivation of elderly - care REITs, and carried out practical exploration work in 11 regions [32]. - On October 16, 2025, 9 departments including the Ministry of Housing and Urban - Rural Development supported eligible new urban infrastructure to issue REITs [32]. - On October 17, 2025, the bid - evaluation result of the financial advisor for Qingcheng Mountain - Dujiangyan Scenic Area REITs was announced, with CICC winning the bid at 5 million yuan [32]. - There were also important announcements such as dividends, operating conditions, and strategic placement share unlocks of some REITs [33].

Investment Rating - The report maintains a positive outlook on the home appliance sector, highlighting potential investment opportunities in leading companies such as Haier, Midea, and Gree [2][8]. Core Insights - The home appliance sector underperformed compared to the CSI 300 index, with a decline of 1.5% in the Shenwan household appliance index [2][3]. - Haier Group and Alibaba signed a comprehensive strategic cooperation agreement focusing on AI and cloud technologies, advanced manufacturing, e-commerce, and globalization [8][55]. - JD.com's 11.11 sales event showed significant growth in home appliances, with new product sales increasing over four times year-on-year [9][55]. Industry Dynamics - Haier and Alibaba's partnership aims to create a new digital industrial ecosystem, leveraging AI capabilities and enhancing manufacturing innovation [8][55]. - JD.com's early sales data indicated that high-end products like large TVs and multi-tub washing machines saw sales growth exceeding ten times year-on-year [9][55]. Data Observations - In September, sales of cleaning appliances like robotic vacuums and washing machines increased significantly, with robotic vacuum sales up 56.56% and washing machines up 61.29% year-on-year [27][30]. - Personal care products also showed varied performance, with hairdryer sales increasing by 4.94% but with a decline in average price, while electric shaver sales surged by 45.46% with a significant increase in sales revenue [33][34]. Investment Highlights - The report identifies three main investment themes: 1. White goods, benefiting from favorable real estate policies and high dividend yields. 2. Export opportunities driven by large customer orders and stable profitability. 3. Core components, with demand exceeding expectations due to the robust performance of white goods [2][8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The liquidity of the REITs market has bottomed out and rebounded, with two new projects attracting over 200 billion yuan in funds. The first - level market's new - issue enthusiasm remains high, and the overall liquidity has improved, especially in the affordable housing sector [3]. - As of October 10, 2025, 18 REITs have been successfully issued this year, with a scale of 36.34 billion yuan, a year - on - year decrease of 21.5%. Three new - issue and two expansion - issue REITs have made new progress this week [4]. - This week, the CSI REITs Total Return Index closed at 1043.46 points, down 1.44%. The liquidity of both property - type and franchise - type REITs has increased, and the data center sector is the most active. In terms of valuation, the warehousing and logistics, transportation, and park sectors rank among the top [5]. 3. Summary According to the Directory 3.1 First - level Market: Three New - issue Public REITs Made New Progress - As of October 17, 2025, 77 REITs have been issued, with a total issuance scale of 199.6 billion yuan, a total market value of 217.4 billion yuan, and a circulating market value of 108 billion yuan. Among them, property - type REITs account for a large proportion in terms of quantity and scale [16]. - This week, three new - issue REITs made progress: E Fund Guangxi Beitou Expressway REIT has been declared, and China AMC China Overseas Commercial REIT and CITIC Construction Investment Shenyang International Software Park REIT have completed fundraising [4][17]. - Two expansion - issue REITs made progress: China AMC China Resources Commercial REIT has been accepted, and China AMC China Resources Youchao REIT has received feedback [4][18]. 3.2 Second - level Market: Liquidity Bottomed out and Rebounded this Week 3.2.1 Market Review: CSI REITs Total Return Index Fell 1.44% - This week, the CSI REITs Total Return Index closed at 1043.46 points, down 1.44%, outperforming the CSI 300 by 0.78 percentage points and underperforming the CSI Dividend by 2.11 percentage points. Year - to - date, it has risen 7.81%, underperforming the CSI 300 by 6.91 percentage points and outperforming the CSI Dividend by 7.54 percentage points [5]. - By project attribute, property - type REITs fell 2.09%, and franchise - type REITs fell 1.64%. By asset type, the data center, transportation, environmental protection and water services, and park sectors performed better [5]. - Among individual bonds, 4 rose and 70 fell. The top three were Huatai - PineBridge Nanjing Jianye REIT, Southern Runze Technology Data Center REIT, and Huatai - PineBridge Baowan Logistics REIT, while the bottom three were Yin Hua Shaoxing Raw Water Conservancy REIT, Hongtu Shenzhen Anju REIT, and Huatai - PineBridge Baowan Logistics REIT [5]. 3.2.2 Liquidity: Turnover Rate Bottomed out and Rebounded, with the Affordable Housing Sector Improving Most Significantly - The average daily turnover rates of property - type and franchise - type REITs this week were 0.39% and 0.36% respectively, an increase of 8.58 and 4.88 basis points compared to last week. The trading volumes were 366 million and 102 million shares respectively, a week - on - week increase of 28.35% and 15.87% [5][27]. - The data center sector was the most active, and the affordable housing sector had the most significant improvement in liquidity [3][27]. 3.2.3 Valuation: The Affordable Housing Sector has a Higher Valuation - According to the China Bond valuation yield, the yields of property - type and franchise - type REITs are 3.94% and 4.16% respectively. The warehousing and logistics, transportation, and park sectors rank among the top [5][32]. 3.3 This Week's News and Important Announcements - News: The Ministry of Civil Affairs supports the cultivation of pension REITs; 9 departments including the Ministry of Housing and Urban - Rural Development support eligible new - type urban infrastructure to issue REITs; the bid - evaluation result of the financial advisor for Qingcheng Mountain - Dujiangyan Scenic Area REITs has been announced [36]. - Announcements: China AMC Joy City Commercial REIT will conduct a second dividend in 2025; the Q3 operating conditions of AVIC Shougang Green Energy REIT and CITIC Construction Investment Mingyang Smart New Energy REIT have been announced; the strategic placement shares of China Merchants Shekou Rental Housing REIT will be lifted from restrictions [37].

Investment Rating - The report initiates coverage with a "Buy" rating for BYD Electronics [1][7]. Core Insights - The report emphasizes BYD Electronics' competitive advantages and growth potential across its various business segments, including consumer electronics, automotive electronics, and new business layouts in AIDC and robotics [6]. - The company is positioned as the 7th largest EMS globally, benefiting from the transformation cycle in consumer electronics materials and vertical integration to enhance value [6][19]. - The report highlights expected profit growth, with net profits projected to reach RMB 48.9 billion, RMB 67.0 billion, and RMB 88.9 billion for 2025-2027, representing year-on-year growth rates of 15%, 37%, and 33% respectively [7]. Summary by Sections 1. Company Overview - BYD Electronics is a leading high-tech EMS provider, leveraging core technologies in electronic information, AI, 5G, and IoT to offer comprehensive product solutions [19]. - The company has a strong focus on material and process innovation, capturing opportunities in the transformation of mobile device materials [19][25]. 2. Financial Data and Profit Forecast - Revenue projections for 2023 to 2027 are as follows: RMB 129.96 billion, RMB 177.31 billion, RMB 194.70 billion, RMB 221.78 billion, and RMB 240.89 billion, with growth rates of 21.2%, 36.4%, 9.8%, 13.9%, and 8.6% respectively [5]. - The expected net profit for the same period is RMB 4.04 billion, RMB 4.27 billion, RMB 4.89 billion, RMB 6.70 billion, and RMB 8.89 billion, with growth rates of 117.6%, 5.5%, 14.6%, 37.1%, and 32.7% respectively [5]. 3. Business Segments - Consumer Electronics: The company focuses on deepening its business with Apple, expecting Apple-related revenue to account for 69% of its business by 2024 [6]. - Automotive Electronics: The company benefits from the smart upgrade cycle of its parent company, with revenue from this segment reaching RMB 12.45 billion in the first half of 2025, a year-on-year increase of 60.5% [6]. - New Business: The report discusses the potential of AIDC and robotics, with significant advancements in liquid cooling and power supply products certified by NVIDIA [6][9]. 4. Investment Analysis - The report provides a cautious target PE of 18 times for 2026, leading to a target market capitalization of RMB 120.6 billion, indicating an upside potential of 55% [7]. - The report identifies catalysts for stock price performance, including increased supply share of structural components to overseas clients and advancements in new product lines [10].

Investment Rating - The report indicates a positive outlook for the overseas pharmaceutical industry, particularly focusing on innovative drugs and clinical trial advancements [11]. Core Insights - The report highlights significant clinical trial updates from various companies, including Innovent Biologics, CanSino Biologics, and Kelun-Biotech, with a focus on their ongoing studies for advanced cancer treatments [6][7][8]. - The report emphasizes the successful third-phase clinical trials for several drugs, including TUKYSA for HER2+ metastatic breast cancer, and the acquisition of Orbital Therapeutics by BMS for $1.5 billion, indicating strong market activity and investment in innovative therapies [9][10]. Summary by Sections 1. Overseas Pharmaceuticals - The report discusses the recent updates from the 2025 ESMO conference, including multiple clinical trials for drugs targeting advanced kidney cancer and non-small cell lung cancer [6][7]. - Notable companies mentioned include Innovent Biologics with its study on IBI363 for sq-NSCLC, and Kelun-Biotech's TROP2 ADC for EGFR mutation-positive NSCLC [8][9]. 2. Market Performance - The Hang Seng Healthcare Index experienced a decline of 5.01%, underperforming the Hang Seng Index by 1.78 percentage points [6]. - The report notes the overall positive growth in the pharmaceutical sector, driven by innovative drug commercialization and active mergers and acquisitions [11]. 3. Company Updates - BMS's acquisition of Orbital Therapeutics for $1.5 billion is highlighted, showcasing the trend of consolidation in the pharmaceutical industry [9]. - Strong quarterly performance from Johnson & Johnson and Pfizer is reported, with J&J achieving $23.993 billion in revenue, a 6.8% year-over-year increase [10]. 4. Recommendations - The report suggests focusing on innovative drug companies with active clinical pipelines, including Innovent Biologics, CanSino Biologics, and Kelun-Biotech, as potential investment opportunities [11].

Investment Rating - The report maintains an "Overweight" rating for the overseas pharmaceutical industry, indicating a positive outlook for the sector [1]. Core Insights - The report highlights key clinical data updates from the 2025 ESMO conference, focusing on several companies including Innovent Biologics, CanSino Biologics, and Kelun-Biotech, which are conducting pivotal clinical trials for various cancer treatments [1][7]. - Notable advancements include the registration studies for IBI363 by Innovent Biologics and the approval of a third indication for TROP2 ADC by Kelun-Biotech, showcasing the ongoing innovation in the sector [8][9]. - The report emphasizes the strong performance of companies like BMS and Pfizer, with BMS acquiring Orbital Therapeutics for $1.5 billion and Pfizer reporting positive results from its HER2 inhibitor trial [9][10]. Summary by Sections 1. Overseas Pharmaceuticals - The Hang Seng Healthcare Index fell by 5.01%, underperforming the Hang Seng Index by 1.78 percentage points [6]. - Key events include multiple clinical trials presented at the 2025 ESMO, such as Innovent's study on the combination of sintilimab and lenvatinib for advanced renal cell carcinoma [7]. - The report suggests continued monitoring of innovative drugs and clinical progress from companies like BeiGene, Innovent, and CanSino [11]. 2. Company Updates - BMS announced a $1.5 billion acquisition of Orbital Therapeutics, which includes the OTX-201 therapy [9]. - Strong performance reported by Johnson & Johnson with Q3 2025 revenue of $23.993 billion, a 6.8% year-over-year increase [9]. - Pfizer's TUKYSA trial for HER2+ metastatic breast cancer yielded positive top-line results, indicating a successful phase in their drug development [10]. 3. Market Trends - The report notes a significant increase in inbound tourism to Macau during the National Day holiday, with a total of approximately 1.14 million visitors, marking a 1.9% year-over-year growth [13]. - The average daily visitor count reached a record high of 143,000, reflecting a recovery in the tourism sector [13].