Investment Rating - The report assigns an "Overweight" rating to Innovent Biologics (01801) with a target price of HKD 130 [1] Core Insights - The Chinese biotechnology sector is entering a turning point this year, with fundamentals stabilizing and innovation resilience [1] - There is ongoing licensing activity and a recovery in financing activities, although the first half of the year is characterized by a scarcity of catalysts and limited high-conviction investment themes [1] - Geopolitical uncertainties are expected to lead to a broader rotation away from high-beta sectors like biotechnology, which may face greater allocation pressure [1] - The report anticipates that the Chinese biotechnology sector will 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 more favorable valuations [1] - The next growth phase is likely to begin with significant data releases, business development activities, and increased visibility in licensing transactions, with most events concentrated in the second half of 2026 [1] - The expectation is for continued volatility driven by events in the first half, followed by a more sustained upward trend in the second half as catalysts accumulate and overseas capital flows increase [1]