Core Viewpoint - The recent adjustment in the Hong Kong innovative drug sector has led to significant declines in the stock prices of some leading companies, despite improvements in mid-term earnings for several firms. The market's cold response is attributed to reliance on one-time factors for profit growth and increasing uncertainties in overseas markets, particularly due to high tariff plans proposed by the U.S. [1] Group 1: Performance Improvement Factors - The substantial increase in net profit reported by Hutchison China MediTech is primarily due to income from the sale of equity stakes in associated companies, while its core oncology immunotherapy business revenue has declined year-on-year [3] - Core product, furmonertinib, has seen growth in overseas markets, but domestic sales have significantly decreased due to competition from similar drugs and generics. The management has lowered the annual revenue forecast for the oncology business, and the review time for some new drug indications has been postponed to after 2025 [3] - Other companies like BeiGene and Innovent Biologics have shown impressive data performance, with increases in revenue and gross margins. BeiGene achieved its first half-year profit mainly due to the strong performance of core products, but it is also actively controlling costs, leading to a decrease in sales expense ratio [3] Group 2: Market Signals and Investment Sentiment - The recent price adjustments in innovative drug stocks are closely related to instability in the external environment, particularly the potential tightening of U.S. drug import policies, which poses uncertainties for export-dependent companies regarding pricing negotiations and market access [4] - The basis for some companies' profit improvements is not from sustained growth in core businesses but rather from structural adjustments, cost control, or non-recurring income, leading to cautious investor sentiment regarding valuations [4] - Domestic market price competition is also affecting expectations, as more similar innovative drugs enter the insurance directory and market, potentially eroding market share and sales prices of existing products. A conservative approach to R&D investment may optimize short-term profit margins but weaken long-term pipeline competitiveness [4]