Core Viewpoint - Morgan Stanley has initiated coverage on Innovent Biologics (01801) with an "Overweight" rating and a target price of HKD 130, indicating a positive outlook for the company amidst a stabilizing biotechnology sector in China [1] Industry Summary - The Chinese biotechnology sector is entering a turning point this year, with fundamentals stabilizing and innovation showing resilience, while licensing deals are ongoing and financing activities are recovering [1] - In the first half of the year, investment themes with high conviction are limited due to a lack of catalysts, and risk appetite remains unstable [1] - Increased geopolitical uncertainties are expected to lead to a broader rotation away from high-beta sectors, with biotechnology facing greater allocation pressure [1] - The sector is anticipated to experience range-bound fluctuations in the first half of the year, with clearer price direction expected in the second half due to catalysts, capital reallocation, and improved valuations [1] Company Summary - The next growth phase for the biotechnology sector is likely to begin with significant data releases, business development activities, and increased visibility in licensing deals [1] - Most of these events are concentrated around the second half of 2026, suggesting that further industry re-evaluation should be delayed rather than interrupted [1] - Morgan Stanley expects the Chinese biotechnology sector to remain volatile in the first half of the year, driven by events, while a more sustained upward trend is anticipated in the second half as catalysts accumulate and foreign capital flows increase [1]
大摩：中国生科板块催化剂集中下半年 重新覆盖信达生物予“增持”评级