Investment Rating - The report assigns an "Add" rating for the company, marking its first coverage [1][5]. Core Insights - The company has entered a multi-year R&D collaboration with Servier, focusing on challenging targets in oncology using its AI platform Pharma.AI [2][3]. - The agreement allows the company to receive up to $32 million in upfront and milestone payments, with Servier sharing R&D costs and leading subsequent clinical validation and commercialization [3][5]. - The company is recognized for its AI-driven drug development capabilities in oncology, with several promising candidates already in clinical trials [4][5]. - The business model is differentiated, as it does not rely on a single molecule and shares R&D costs with partners, reducing clinical phase risks and maximizing AI platform value [5]. Financial Projections - Revenue is projected to grow from $86 million in 2024 to $170 million in 2027, with growth rates of 68%, 11%, 35%, and 32% respectively [8]. - The company is expected to achieve an EPS of -0.24 in 2024, improving to 0.00 by 2027 [8]. - EBITDA is forecasted to improve from -11 million in 2024 to -2 million in 2027, indicating a trend towards profitability [8][11].

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Views - The report highlights continuous catalysts in the small nucleic acid industry for 2026, with a focus on investment opportunities within the industry chain [5][19] - The report emphasizes the importance of clinical trial data releases and project advancements from major siRNA companies such as Alnylam, Arrowhead, and Wave Life Sciences [19][27] Summary by Sections Industry Overview - The closing index for the industry is at 8657.19, with a 52-week high of 9323.49 and a low of 6876.88 [2] Recent Market Performance - The A-share pharmaceutical and biotechnology sector declined by 0.68% from January 12 to January 16, 2026, underperforming the CSI 300 index by 0.11 percentage points and the ChiNext index by 1.68 percentage points [9][28] - Among the sub-sectors, the medical research outsourcing sector performed the best, increasing by 3.69%, while the vaccine sector saw a decline of 3.43% [10][28] Industry Insights and Investment Recommendations 1. **Innovative Drugs and Industry Chain**: The JPM conference reinforced the development logic of the industry, with increased merger and acquisition activity among multinational corporations (MNCs) and breakthroughs in domestic innovative drug companies. The report suggests focusing on companies with high certainty and relatively low business development (BD) disruption expectations, such as Innovent Biologics and others [11][30][31] 2. **Life Science Services**: The report sees stable recovery in overseas research and production outsourcing demand, with domestic Big Pharma's R&D spending increasing steadily. It recommends focusing on companies like WuXi AppTec and others [12][31] 3. **Medical Devices**: The report notes a potential turning point in the medical device sector, with improving performance from leading companies and a gradual reduction in the pressure from centralized procurement. It suggests monitoring companies like Mindray and others [13][34] 4. **Traditional Chinese Medicine**: The report highlights opportunities in basic drug policies and innovation-driven directions, recommending companies like Zhaoli Pharmaceutical and others [38][40] 5. **AI in Pharmaceuticals**: The report discusses the maturity of AI applications in pharmaceuticals, diagnostics, and medical services, identifying potential beneficiaries in various AI+medical sectors [42] Market Valuation - As of January 16, 2026, the overall valuation of the pharmaceutical sector is at 30.35, with a relative valuation premium of 124.45% over the CSI 300 index, indicating a slight increase from the previous week [48]

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Insights - The report indicates that the real estate sector continues to adjust, with expectations for marginal stabilization in sales [4] - In 2025, national real estate development investment reached 82,788 billion yuan, a year-on-year decrease of 17.2%, while new housing starts fell by 20.4% to 58,770 million square meters [4] - New residential sales area in 2025 was 88,101 million square meters, down 8.7% year-on-year [4] - In December 2025, the sales prices of residential properties in 70 large and medium-sized cities showed a month-on-month decline, with year-on-year declines widening compared to the previous month [4] Industry Fundamentals Tracking New Housing Transactions and Inventory - Last week, the new housing transaction area in 30 major cities was 126.6 million square meters, with a cumulative year-to-date transaction area of 472.22 million square meters, down 27.1% year-on-year [5] - The average transaction area over the past four weeks in these cities was 193.53 million square meters, down 29.5% year-on-year and 14.4% month-on-month [5] - First-tier cities saw a year-on-year decline of 36.1% in average transaction area over the past four weeks [5] Second-Hand Housing Transactions and Listings - In the last week, the second-hand housing transaction area in 20 cities was 234.39 million square meters, with a cumulative year-to-date area of 630.72 million square meters, down 12.3% year-on-year [6] - The average transaction area over the past four weeks in these cities was 214.47 million square meters, down 15.5% year-on-year [6] Land Market Transactions - Last week, 100 major cities saw 31 new residential land supplies and 17 transactions, with an average transaction price of 4,346.25 yuan per square meter and a premium rate of 1.18% [28] - The average transaction price for commercial land was 2,175.75 yuan per square meter, with a premium rate of 0.73% [28] Market Review - Last week, the A-share real estate index fell by 3.52%, underperforming the CSI 300 index, which fell by 0.57% [31] - The real estate index lagged behind the CSI 300 index by 2.95 percentage points [31] - In the Hong Kong market, the Hang Seng Property Services and Management Index fell by 0.74%, while the Hang Seng Composite Index rose by 2.56% [31]

Investment Rating - The industry investment rating is "Outperform" [2] Core Views - The report emphasizes the continuous catalysts in the small nucleic acid industry for 2026, highlighting the potential investment opportunities within the industry chain [5][19] - The report suggests a positive outlook for innovative drugs and the industry chain, with expectations of increased global participation from domestic innovative drug companies and the introduction of more innovative projects in 2026 [11][30] - The report identifies the medical device sector as a potential area for capital inflow, with signs of improvement in leading companies and a reduction in the pressure from centralized procurement [13][34] Summary by Sections Industry Overview - The closing index for the industry is at 8657.19, with a 52-week high of 9323.49 and a low of 6876.88 [2] Recent Market Performance - The A-share pharmaceutical and biotechnology sector fell by 0.68% from January 12 to January 16, 2026, underperforming the CSI 300 index by 0.11 percentage points [9][28] - The medical research outsourcing sector performed the best among sub-sectors, rising by 3.69%, while the vaccine sector declined by 3.43% [10][28] Innovative Drugs and Industry Chain - The JPM conference highlighted the strengthening of industry development logic, with increased merger and acquisition activity among multinational corporations and breakthroughs in domestic innovative drugs [11][30] - The report recommends focusing on companies with high certainty and relatively low disruption expectations, such as Innovent Biologics and others [11][30] Medical Devices - The report notes that the medical device sector is showing signs of improvement, with leading companies reporting better performance in Q3 [13][34] - The report suggests that the pressure from centralized procurement is decreasing, which may lead to valuation recovery [13][34] Small Nucleic Acid Drugs - The report highlights several key clinical trials and data readouts expected in 2026 from companies like Alnylam, Arrowhead, and Wave Life Sciences, indicating a significant focus on the weight loss and CNS fields [6][8][27] - The report encourages attention to domestic small nucleic acid-related companies and upstream industry chains [27] Investment Recommendations - The report suggests focusing on companies in the CXO and life science services sectors, as demand for overseas R&D and production outsourcing is expected to recover steadily [12][31] - It also highlights the potential for valuation re-evaluation opportunities in the biopharmaceutical sector, particularly for blood products and vaccines [32][33]

Report Information - Report Type: Fixed Income Report - Release Date: January 19, 2026 - Analysts: Liang Weichao (SAC ID: S1340523070001), Cui Chao (SAC ID: S1340523120001) [2] Core Views - High - frequency economic data focuses: production end shows a differentiated heat, with the decline in the operating rates of coke ovens, blast furnaces, and PTA, and the increase in the operating rates of asphalt, PX, and tires; the floor area of commercial housing transactions continues to decline while the land supply area slightly increases; price trends are also differentiated, with slight increases in the prices of crude oil, zinc, and rebar, and copper prices rising and then falling; the overall price of agricultural products continues to decline, but the prices of pork, eggs, vegetables, and fruits all increase. In the short term, pay attention to the implementation of fiscal and monetary coordination policies [3][32] Section Summaries Production - Steel: The utilization rate of coke oven capacity decreased by 0.14 pct, the blast furnace operating rate decreased by 0.47 pct, and the rebar output decreased by 0.74 tons in the week of January 16. The inventory also decreased by 5.27 tons [9] - Petroleum Asphalt: The operating rate continued to rise by 1.8 pct from a low level in the week of January 14 [9] - Chemical Industry: The PX operating rate increased by 1.25 pct, while the PTA operating rate decreased by 0.65 pct on January 15 [9] - Automobile Tires: The operating rate of all - steel tires increased by 4.91 pct, and that of semi - steel tires increased by 7.55 pct in the week of January 15 [10] Demand - Real Estate: In the week of January 11, the floor area of commercial housing transactions in 30 large and medium - sized cities decreased by 107.21 square meters, the inventory - to - sales ratio increased, the land supply area in 100 large and medium - sized cities increased by 39.32 square meters, and the premium rate of residential land transactions increased by 0.62 pct [13] - Movie Box Office: It decreased by 711 million yuan in the week of January 11 [13] - Automobile: In the week of January 11, the average daily retail sales of automobile manufacturers decreased by 92,800 vehicles, and the average daily wholesale sales decreased by 175,200 vehicles [17] - Shipping Freight Rates: In the week of January 16, the SCFI index decreased by 4.45%, the CCFI index increased by 1.25%, and the BDI index decreased by 7.17% and has been falling rapidly since the peak in early December last year [20] Prices - Energy: The Brent crude oil price rose by 1.25% to $64.13 per barrel on January 16, while the coking coal futures price decreased by 0.34% to 1,184 yuan per ton [22] - Metals: The LME copper, aluminum, and zinc futures prices changed by - 1.5%, - 0.06%, and + 1.76% respectively, and the domestic rebar futures price rose by 0.86% on January 16 [22] - Agricultural Products: The overall price continued to decline, with the 200 - index of agricultural product wholesale prices decreasing by 0.37%. However, the prices of pork, eggs, vegetables, and fruits increased by 0.56%, 3.31%, 0.18%, and 1.91% respectively compared with the previous week on January 16 [25] Logistics - Subway Passenger Volume: In Beijing and Shanghai, the seven - day moving average of subway passenger volume decreased by 484,700 and 287,100 person - times respectively on January 16 [28] - Flight Operations: On January 17, the seven - day moving average of domestic (excluding Hong Kong, Macao, and Taiwan) flight operations increased by 405.29 flights, domestic (Hong Kong, Macao, and Taiwan) increased by 1.14 flights, and international flights decreased by 18.86 flights [30] - Urban Traffic: On January 17, the seven - day moving average of the peak congestion index in first - tier cities decreased by 0.03 [30]

Industry Investment Rating - The investment rating for the industry is Neutral, maintained [1] Core Insights - The report highlights a comprehensive recovery in the securities industry, evidenced by significant profit growth from leading brokers such as CITIC Securities and Southwest Securities, with net profit increases of 38.46% and 47%-57% year-on-year respectively for 2025 [3][17] - The active capital market and supportive policies have contributed to the robust performance of the industry, with expectations for continued valuation recovery in the brokerage sector due to current liquidity benefits [3] Industry Fundamentals Tracking - As of January 16, 2026, the Shibor 3-month rate remained stable at 1.60%, indicating a low-cost environment for short-term financing, which is beneficial for brokers [4][18] - The average daily trading volume for stock funds during the week of January 12-16 was approximately 40,855 billion, reflecting a 21.32% increase from the previous week, signaling a recovery in market trading sentiment [5][19] - The margin financing balance has seen rapid growth, increasing from approximately 2.56 trillion to 2.72 trillion from January 5 to January 15, 2026, with the proportion of margin trading remaining above 10% [6][20] - The bond market index showed a slight upward trend, with the wealth index rising from 248.7749 points on January 9 to 249.2233 points on January 16, indicating a stable market environment [7][22] - The yield on 10-year government bonds fluctuated between 1.84% and 1.86%, reflecting a low-risk interest rate environment, while the stock-bond spread showed a mild upward trend [9][25] Market Review - The A-share securities industry index decreased by 2.21% last week, underperforming the CSI 300 index by 1.64 percentage points, with a year-on-year increase of 9.58% for the securities sector compared to 24.65% for the CSI 300 [10][27] - In terms of industry ranking, the securities sector ranked 26th among 31 primary industries, slightly outperforming the non-bank financial sector [10][28]

Investment Rating - Industry investment rating: Stronger than the market, maintained [1] Core Views - Focus: Expectations for marginal improvement in PX and PTA supply and demand this year. The price spread between PX (China main port) and naphtha (Japan) has started to decline, recorded at 326.08 USD/ton on the 15th, with attention on the potential for the price spread to strengthen again. Geopolitical influences from Iran have led to a risk premium in oil pricing this week [2] - Review: The performance of the oil and petrochemical index was average this week, with a decrease of 0.27% compared to last week. Among the sub-indices, oilfield services performed the best within the oil and petrochemical sector, with an increase of 1.63% [5][3] - Oil: Crude oil prices increased; US crude oil inventories rose while gasoline inventories fell [6][10] - Polyester: The price of polyester filament remained stable; inventory days for different varieties of polyester filament in Jiangsu and Zhejiang varied, with a decrease in weaving machine operating rates [13][20] - Olefins: Sample PE spot prices increased, while petrochemical inventories of polyolefins decreased [23][24] Summary by Sections Upstream - If geopolitical factors lead to a future oil premium, it will benefit upstream targets [2] Midstream (Refining) - An improvement in demand and progress in eliminating outdated production capacity will benefit midstream refining [2] Polyester Filament - Attention on the progress of PTA's internal competition and PX profit recovery; if successful, it will benefit polyester filament [2] Oil Market - Brent crude oil futures and TTF natural gas futures closed at 64.47 USD/barrel and 37.66 EUR/MWh, respectively, with increases of 1.6% and 32.1% compared to last week [7] Polyester Market - The latest data shows stable prices for polyester filament, with POY, DTY, and FDY prices at 6550, 7750, and 6800 CNY/ton, respectively, with price spreads increasing by 24 CNY/ton [15][21] Olefins Market - The sample PE price was 6920 CNY/ton, up 0.29% from last week, while petrochemical inventories of polyolefins decreased to 490,000 tons, down 80,000 tons from the previous week [26]

Investment Rating - Industry investment rating: Stronger than the market, maintained [1] Core Insights - Focus: Expectations for marginal improvement in PX and PTA supply and demand this year. The price spread between PX (China main port) and naphtha (Japan) has started to decline, recorded at 326.08 USD/ton on the 15th, with attention on the potential for the price spread to strengthen again. Geopolitical influences from Iran have led to a risk premium in oil pricing this week [2] - Review: The performance of the oil and petrochemical index was average this week, with a decrease of 0.27% compared to last week. Among the sub-indices, oilfield services performed the best within the oil and petrochemical sector, with an increase of 1.63% [5][3] - Oil: Crude oil prices increased; U.S. crude oil inventories rose while gasoline inventories fell [6][10] - Polyester: The price of polyester filament remained stable; inventory days for different varieties of polyester filament in Jiangsu and Zhejiang varied, with a decrease in weaving machine operating rates [13][20] - Olefins: Sample PE spot prices increased, while petrochemical inventories of polyolefins decreased [23][26] Summary by Sections Oil - Crude oil prices increased, with Brent crude futures and TTF natural gas futures closing at 64.47 USD/barrel and 37.66 EUR/MWh, respectively, marking increases of 1.6% and 32.1% compared to last week [7] - U.S. crude oil and petroleum product inventories (excluding strategic reserves) increased by 6,210 thousand barrels; gasoline, jet fuel, and distillate fuel oil inventories changed by -35, -892, and -29 thousand barrels, respectively [12] Polyester - The price of polyester filament remained stable, with POY, DTY, and FDY prices at 6,550, 7,750, and 6,800 CNY/ton, respectively, with price spreads increasing by 24 CNY/ton for each type compared to last week [15] - Inventory days for polyester filament in Jiangsu and Zhejiang were reported as 17.4, 23.2, and 12.8 days for FDY, DTY, and POY, respectively, with weaving machine operating rates decreasing by 0.6% [21][20] Olefins - Sample PE spot prices rose to 6,920 CNY/ton, reflecting a 0.29% increase from the previous week [26] - Petrochemical inventories of polyolefins decreased to 490,000 tons, down by 80,000 tons from last week [26]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the current low - interest environment and with the rising demand for residents' wealth re - allocation, the improvement of wealth management product returns is likely to follow the path of strengthening the fixed - income base, structurally introducing equity assets, and enhancing risk management capabilities. The wealth management industry will seek a balance between return stability and stage elasticity through structural optimization and improved tool utilization, with the improvement in returns mainly reflected in the enhancement of allocation efficiency [6]. 3. Summary According to the Directory 3.1 1. Wealth Management Scale Seasonal Decline, Newly Issued Products Remain Conservative in the Equity Market - **1.1 Wealth management scale seasonal decline, fixed - deposit maturity brings re - allocation window**: By the end of December 2025, the total scale of wealth management products was about 33.2 trillion yuan, a decrease of about 0.8 trillion yuan from the end of November. The year - on - year growth rate in December was 11.8%, lower than that in November and December 2024. High - interest fixed deposits from the first quarter of 2023 will mature in the first quarter of 2026, with a 3 - year fixed - deposit rate of only about 1.25%, creating potential re - allocation power for non - deposit wealth management products [12][13]. - **1.2 Newly issued wealth management products still focus on pure fixed - income and low - weight fixed - income +**: From December 15, 2025, to January 15, 2026, newly issued wealth management products were still mainly pure fixed - income products in terms of scale. The funds of newly issued products were concentrated in R1 - R3 risk - level products, especially R2 products. The newly issued fixed - income products accounted for 98.74% of the total scale, and the fixed - income enhancement products accounted for 68.51% of the newly added funds [16]. 3.2 2. Characteristics of Wealth Management's Participation in Equities: Fixed - Income + as the Mainstay, Equity as a Supplement - **2.1 Existing products: Fixed - income + and multi - asset portfolios are the main carriers**: Wealth management's participation in the stock market is mainly through R3 - centered fixed - income + and multi - asset portfolios, introducing equity positions indirectly or directly through various means. Pure equity products are limited due to customer group characteristics, regulatory suitability constraints, and channel endowments [18]. - **2.2 Incremental products: Directional attempts of newly issued equity and fixed - income + products**: Since 2025, about 80 equity - index wealth management products have been newly issued, with Huaxia Wealth Management being the most active. However, the single - product scale is generally small, and products with a fixed - income nature are more likely to be subscribed [20]. 3.3 3. Performance of Wealth Management Yields in an Equity Bull Market - **3.1 Recent overall performance of wealth management is dominated by partial - stock hybrid categories**: In the equity bull market, fixed - income products maintain low - volatility and low - return characteristics, with an average weekly return of 0.02% - 0.06%. The return elasticity of hybrid products is significantly improved, with partial - stock hybrid products having an average weekly return of 0.93%. Equity products have the strongest upward elasticity, with an average weekly return of 0.58%, but their return distribution varies widely [22][23]. - **3.2 High - performing fixed - income + wealth management deeply participates in equity investment**: Some high - performing fixed - income + wealth management products have achieved a return of 10% - 15% this year, significantly higher than the performance benchmark. They increase returns by allocating equity ETFs, industry - themed funds, and convertible bond funds on the basis of bond assets [26]. 3.4 4. Feasible Paths for Wealth Management Products to Improve Returns in the Future - Wealth management products should give full play to their channel and customer - group advantages, optimize asset allocation and product structure within the policy boundaries. They should adopt a "gradual and explainable" allocation strategy, moderately include low - volatility equity sectors, and use index - based investment products. Although the reduction of fees has improved the cost - performance of wealth management products, there are still constraints in the sales incentive mechanism, risk constraints, and channel efficiency. In general, the development of fixed - income products containing equity is expected to follow the path of "strengthening the fixed - income base + structural equity participation + refined risk management" [28][29][31].

Industry Investment Rating - The investment rating for the construction materials industry is "Outperform the Market" [1] Core Insights - The report highlights that the cement market is entering a seasonal downturn, with overall demand showing a downward trend. The real estate market remains weak, while infrastructure demand is regionally differentiated due to policy drivers. The civil market shows relatively inelastic demand. In the medium term, cement industry capacity is expected to decline under policies limiting overproduction, leading to a significant increase in capacity utilization and profit elasticity. Key companies to watch include Conch Cement and Huaxin Cement [3][4] - The glass industry is experiencing sustained demand pressure due to the impact of real estate, with a continuous decline in demand expected in 2025. Short-term improvements in demand during the traditional peak season are limited, and inventory levels among intermediaries are relatively high. Despite recent cold repairs of several production lines, overall supply-demand pressure remains, and prices are expected to stay low in the short term. Key company to monitor is Qibin Group [4][14] - The fiberglass sector is seeing weak demand as the year-end approaches, with downstream purchasing performance being subdued. However, the electronic yarn segment is driven by demand from the AI industry, leading to a rise in both volume and price. The industry is expected to experience explosive growth in demand alongside AI advancements. Key companies to focus on include China Jushi and China National Building Material [4] - The consumer building materials sector has reached a profitability bottom, with prices having no further downward space after years of competition. The industry is strongly advocating for price increases and profit improvements, with expectations for 2026 to see recovery in profitability for leading companies such as Oriental Yuhong and Sanke [4] Summary by Sections Cement - The national cement market is gradually entering the off-season, with demand continuing to decline. The construction market remains weak, and infrastructure demand shows significant regional differentiation. The civil market has relatively rigid demand, and funding remains a key constraint on demand release. In the coming weeks, demand is expected to decrease significantly due to colder weather and the upcoming Spring Festival [8] - In November 2025, the monthly cement production was 154 million tons, a year-on-year decline of 8.2% [8] Glass - The glass industry is under pressure, with traditional peak season demand showing limited improvement. Inventory levels among intermediaries are high, and despite recent cold repairs, supply-demand pressure persists. Prices are expected to remain low in the short term [14] Fiberglass - The fiberglass sector is experiencing subdued demand as year-end approaches, but the electronic yarn segment is benefiting from AI industry demand, leading to a rise in both volume and price. The industry is expected to see significant growth in demand [4] Consumer Building Materials - The consumer building materials sector has reached a profitability bottom, with strong calls for price increases and profit improvements. Expectations for 2026 include recovery in profitability for leading companies [4]