交银国际每日晨报-20251024

Core Insights - The report highlights the strong performance of Chinese pharmaceutical companies at the ESMO conference, suggesting that Q4 2025 will see increased focus on policies, academic conferences, and business development catalysts [1][2] - The Hang Seng Healthcare Index rose by 2.0% this week, underperforming the broader market, with CXO, internet pharmaceuticals, and biopharmaceuticals showing better performance [1] - Institutional holdings in the pharmaceutical sector have seen fluctuations, with a slight decrease in domestic holdings through the Hong Kong Stock Connect, while foreign investments have also been declining since mid-year [1] Market Review - The report notes that since October, the pharmaceutical sector has experienced significant price volatility, but the overall trend remains focused on innovative drug investments, particularly in companies with clear pipeline values and cost-effectiveness [1][2] - Key companies such as Kangfang Biotech, Rongchang Biotech, Kelun-Botai, and others presented significant data at the ESMO conference, indicating a potential market revival as industry catalysts increase [2] Investment Recommendations - The report recommends focusing on innovative drugs, particularly companies like 3SBio and DQ Pharma, which have rich short-term catalysts and whose valuations do not yet reflect the value of their core products [2] - It also suggests that CXO companies, benefiting from high downstream demand and improving financing conditions, should be prioritized, with WuXi AppTec highlighted as a leading player in this segment [2]