Group 1 - The China Securities Central Enterprises Dividend Index (931233.CSI) includes 50 stocks of central enterprises with stable dividend levels and high dividend yields, achieving a 1-year dividend yield of 6.75% as of December 10, which is higher than the 10-year government bond yield of 4.88% [1] - The Hang Seng High Dividend Yield Index (HSMCHYI.HI) consists of high dividend stocks from mainland companies listed in Hong Kong, with a 1-year dividend yield of 6.21% as of December 10, surpassing the 10-year government bond yield of 4.34% [1] - The Non-Standard Poor's Hong Kong Stock Connect Low Volatility Dividend Index (SPAHLVHP.SPI) includes 50 high dividend low volatility stocks listed in Hong Kong, with the Hong Kong Stock Connect Low Volatility Dividend ETF (159118) being the ETF with the lowest comprehensive fee tracking this index [1] Group 2 - Shanghai Pharmaceuticals (601607) announced a dividend of HKD 0.13215 per share, with an ex-dividend date of December 29, 2025, and a payment date of February 6, 2026 [2] - Shanghai Pharmaceuticals is not a component of the China Securities Central Enterprises Dividend Index (931233.CSI), the Hang Seng High Dividend Yield Index (HSMCHYI.HI), or the Non-Standard Poor's Hong Kong Stock Connect Low Volatility Dividend Index (SPAHLVHP.SPI) [2]

Group 1 - The China Securities Central State-Owned Enterprises Dividend Index (931233.CSI) includes 50 stocks of central enterprises with stable dividend levels and high dividend yields, achieving a 1-year dividend yield of 6.75% as of December 10, which is higher than the 10-year government bond yield of 4.88% [1] - The Hang Seng China Mainland Enterprises High Dividend Yield Index (HSMCHYI.HI) consists of high dividend stocks from mainland companies listed in Hong Kong, with a 1-year dividend yield of 6.21% as of December 10, surpassing the 10-year government bond yield of 4.34% [1] - The Non-Standard Poor Hong Kong Stock Connect Low Volatility Dividend Hong Kong Dollar Index (SPAHLVHP.SPI) includes 50 high dividend low volatility stocks listed in Hong Kong, with the Hong Kong Stock Connect Dividend Low Volatility ETF (159118) being the ETF with the lowest comprehensive fee tracking this index [1] Group 2 - Shanghai Pharmaceuticals announced a dividend of HKD 0.13215 per share, with an ex-dividend date of December 29, 2025, and a payment date of February 6, 2026 [2] - Shanghai Pharmaceuticals is not a component of the China Securities Central State-Owned Enterprises Dividend Index (931233.CSI), the Hang Seng China Mainland Enterprises High Dividend Yield Index (HSMCHYI.HI), or the Non-Standard Poor Hong Kong Stock Connect Low Volatility Dividend Hong Kong Dollar Index (SPAHLVHP.SPI) [2]

Group 1 - The China Securities Central Enterprises Dividend Index (931233.CSI) includes 50 stocks of centrally controlled enterprises with stable dividend levels and high dividend yields, achieving a one-year dividend yield of 6.71% as of December 9, which is higher than the 10-year government bond yield of 4.84% [1] - The Hang Seng High Dividend Yield Index (HSMCHYI.HI) consists of high dividend stocks from mainland companies listed in Hong Kong, with a one-year dividend yield of 6.19% as of December 9, surpassing the 10-year government bond yield of 4.31% [1] - The Non-Standard Poor's Hong Kong Stock Connect Low Volatility Dividend Index (SPAHLVHP.SPI) includes 50 high dividend low volatility stocks listed in Hong Kong, with the Hong Kong Stock Connect Low Volatility Dividend ETF (159118) being the ETF with the lowest comprehensive fee tracking this index [1] Group 2 - Shanghai Pharmaceuticals announced a dividend of HKD 0.13215 per share, with an ex-dividend date of December 30, 2025, and a payment date of February 6, 2026 [1]

Group 1 - China Railway announced a dividend of HKD 0.0899 per share, with an ex-dividend date of December 1, 2025, and a payment date of December 23, 2025 [1] - Shanghai Pharmaceuticals declared a dividend of CNY 0.1200 per share, with no specified ex-dividend or payment dates [1] - Jacobson Pharmaceutical announced a dividend of HKD 0.0425 per share, with an ex-dividend date of December 1, 2025, and a payment date of December 18, 2025 [1] - Laopuhuang Gold declared a dividend of HKD 10.52 per share, with an ex-dividend date of November 20, 2025, and a payment date of January 15, 2026 [1] Group 2 - The CSI Central State-Owned Enterprises Dividend Index includes 50 stocks with stable dividend levels and high yields, with a one-year dividend yield of 5.67% as of November 18, higher than the 10-year government bond yield of 3.86% [2] - The Hang Seng Mainland Enterprises High Dividend Yield Index has a one-year dividend yield of 5.34% as of November 18, also higher than the 10-year government bond yield of 3.52% [2] - The largest investment vehicle tracking the CSI Central State-Owned Enterprises Dividend Index is the Hong Kong Central State-Owned Enterprises Dividend ETF [2]

Core Viewpoint - China National Pharmaceutical Group (国药控股) shares rose over 3%, reaching a new high of 20.86 HKD this year, driven by positive market sentiment and analyst recommendations [1] Group 1: Stock Performance - The stock price increased by 3.49% to 20.78 HKD, with a trading volume of 111.2 million HKD [1] - Morgan Stanley's report indicated a 70% to 80% probability of the stock price rising within the next 30 days, with a target price set at 22.5 HKD [1] Group 2: Company Performance - Two subsidiaries of China National Pharmaceutical Group reported positive third-quarter results, indicating a positive trend for the group [1] - China National Pharmaceutical Co. (国药股份) saw a year-on-year revenue and profit increase of 4% and 13%, respectively, in the third quarter [1] - China National Accord Medicines Corporation (国药一致) reported a year-on-year revenue and net profit decline of 2% and 10%, but noted that its distribution business is stabilizing and returning to growth [1] Group 3: Market Context - The pharmaceutical distributor sector is expected to remain under market scrutiny until 2025 due to weak domestic demand and ongoing technology licensing activities in China [1] - The current valuation of China National Pharmaceutical Group, based on a projected P/E ratio of 6.5 times for 2026, suggests a favorable entry point for investors [1]

Core Viewpoint - Morgan Stanley believes that the stock price of China National Pharmaceutical Group (01099) will rise within the next 30 days, with a probability of 70% to 80%, and has given a "Buy" rating with a target price of HKD 22.5 [1] Group 1: Company Performance - Two subsidiaries of China National Pharmaceutical Group have reported third-quarter results showing a positive trend, which is expected to have a beneficial effect on the group [1] - China National Pharmaceutical Co., Ltd. (600511.SH), a major distributor in Beijing and a key supplier of anesthetic drugs, reported a year-on-year revenue and profit increase of 4% and 13% respectively in the third quarter, indicating a positive turnaround [1] - China National Pharmaceutical Group's southern distribution network and Guoda Pharmacy chain, represented by China National Pharmaceutical Holdings (000028.SZ), experienced a year-on-year revenue and net profit decline of 2% and 10% respectively in the third quarter, but the company noted that its distribution business has "stabilized and is recovering growth" [1] Group 2: Market Outlook - The pharmaceutical distributor is expected to remain under market attention until 2025 due to weak domestic demand and the impact of technology licensing activities in China [1] - Based on a projected price-to-earnings ratio of 6.5 times for 2026, Morgan Stanley considers that China National Pharmaceutical Group currently presents a good entry opportunity [1]

Financial Data and Key Metrics Changes - The company has increased its EPS guidance to a range of $15.85 to $16, reflecting strong performance in fiscal year 2025 [7] Business Line Data and Key Metrics Changes - The U.S. Healthcare Solutions segment has been a significant driver of growth, with broad-based strong performance across all U.S. businesses [6][9] - Specialty pharmaceuticals continue to be a key growth area, with strong sales to physician practices and health systems [9][10] Market Data and Key Metrics Changes - The international segment, which contributes 15% of operating income, has faced challenges, particularly in global specialty logistics and consulting businesses [63][64] - There is an expectation for improved performance in the international business in fiscal year 2026 due to a rebound in clinical trial activity [66] Company Strategy and Development Direction - The company focuses on three growth priorities: leading with market leaders, strengthening its position in specialty markets, and enhancing patient access to pharmaceuticals [3][4] - Four strategic drivers include digital transformation, prioritizing growth-oriented investments, productivity improvements, and talent and culture [5][6] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the market, citing strong fundamentals and utilization trends as key drivers of growth [12][13] - The company is cautious about potential changes in the insured population and their impact on pharmaceutical access [28][30] Other Important Information - The company is committed to investing approximately $600 million in CapEx, primarily in technology and infrastructure [74] - There is a focus on strategic M&A, particularly regarding OneOncology and Retina Consultants of America [74] Q&A Session Summary Question: What are the key drivers of the company's strong growth this year? - Management attributes growth to strong utilization trends, sales of specialty products, and broad-based performance across U.S. businesses [9] Question: How does the company view the sustainability of its growth? - Management acknowledges strong recent performance but emphasizes a prudent approach to long-term guidance, evaluating market conditions annually [12] Question: What is the impact of revenue versus profit growth in the U.S. business? - The company explains that profit growth is driven by product mix changes, with some lower-margin products being replaced by higher-margin alternatives [14][17] Question: How is the company planning for COVID vaccine demand? - Management discusses the importance of understanding customer booking expectations and the variability in demand based on approvals [24][26] Question: What are the expectations for the international business moving forward? - Management expresses optimism for growth in the international segment in fiscal year 2026, citing easier comparisons and a rebound in clinical trial activity [66] Question: How is the integration process for Retina Consultants of America progressing? - The integration is reported to be going well, with strong collaboration between teams and a focus on capital investment priorities [45] Question: What is the company's approach to capital deployment? - The company plans to balance investments in the business, strategic M&A, share repurchases, and dividend growth [72][75]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system simplifies the process of finding promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Cencora (COR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive as it indicates strong future prospects [4] - Cencora has a historical EPS growth rate of 14.5%, with projected EPS growth of 15.3% this year, surpassing the industry average of 14.5% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6] - Cencora's year-over-year cash flow growth is 12.9%, significantly higher than the industry average of -1.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.1%, compared to the industry average of 8% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8] - Cencora's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.9% over the past month [8] Group 5: Overall Positioning - Cencora has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]

Group 1 - The company announced the acquisition of 100% equity in Bozhou Le Laohao Pharmaceutical Co., Ltd. for a total consideration of RMB 900,000, which was determined after fair negotiation between the parties [1] - The board anticipates that this acquisition will not have any significant adverse impact on the company's financial condition or operations in the short term [1] - The target company holds a Drug Business License and is primarily engaged in the wholesale and distribution of pharmaceuticals, sales of medical instruments, and wholesale of medical protective supplies, playing a crucial role in public health [1] Group 2 - The company plans to enhance management efficiency and integrate resources based on the existing business of the target company, aiming to become a comprehensive supply chain service provider [2] - The company intends to expand its business beyond basic distribution to provide value-added services such as financial, data, and management solutions for the industry chain [2] - The company aims to leverage digital technology to reduce operational costs and utilize artificial intelligence to improve decision-making accuracy, transforming its logistics capabilities into data, service, and financial strengths [2]