Changjiang Securities·2025-08-04 23:30Investment Rating - The industry investment rating is "Positive" and is maintained [8] Core Insights - The report highlights that the AH premium rates for A/H listed pharmaceutical companies remain at a high level, with significant premiums observed for various innovative drug companies and CXO firms as of August 1, 2025 [2][6] - The report indicates a trend of narrowing AH premium rates, suggesting that leading companies like Heng Rui Medicine and WuXi AppTec have begun to achieve valuation recovery, with Heng Rui's H shares experiencing a reversal in AH premium [7][28] - The report anticipates that as Chinese innovative pharmaceutical companies continue to advance their R&D pipelines and internationalization efforts, the Hong Kong stock market may enter a value reassessment phase, revealing structural investment opportunities [2][28] Summary by Sections AH Premium Rates - As of August 1, 2025, the AH premium rates for several innovative drug companies are as follows: BeiGene at 47.56%, Junshi Biosciences at 70.30%, Innovent Biologics at 83.37%, Fudan-Zhangjiang at 185.15%, and Rongchang Biologics at 17.36% [6][17] - For CXO companies, the AH premium rates are: Zhaoyan New Drug at 52.67%, Tigermed at 36.50%, Kanglong Chemical at 51.60%, and Kelaiying at 20.21% [6][17] Trends in AH Premium Rates - The report notes a significant decrease in AH premium rates since early 2025, with leading companies like Heng Rui Medicine and WuXi AppTec achieving notable valuation adjustments [7][23] - The AH premium rates for these companies have shown a marked decline from earlier levels, indicating a shift in market dynamics [23][28] Investment Perspectives - The report emphasizes that the ongoing "tenglong huan niao" (transformation) in medical insurance will continue to unfold, with innovative drugs being a primary investment focus [30] - It suggests that companies with healthy cash flows, strong innovation capabilities, and established R&D platforms are well-positioned for growth [30] - The report also highlights the importance of breakthrough therapies and technological advancements, particularly in areas such as cytokine immunotherapy and PD1-based therapies [30]