Core Points - The company has successfully included several of its products in the National Medical Insurance Catalog for 2025, which is expected to enhance sales and improve operational performance [1] - The total estimated sales for the included drugs in 2024 is approximately 8.66 billion yuan, and for the first three quarters of 2025, it is about 7.55 billion yuan [1] Drug Inclusion in National Medical Insurance Catalog - The following drugs have been newly included: - Injection of Rukang Qutuzumab - Apixaban Famitinib Capsules - Injection of Funaqi Zhumab - Sulfate of Amatuximab Tablets - Injection of Phosphorola Pitant Palonosetron - Injection of Ruikasi Zhumab - Acetate of Abiraterone Tablets (II) - Lipid Injection of Irinotecan Hydrochloride (II) - Regaglitin Metformin Tablets (I)/(II) - Perfluorohexyl Octane Eye Drops [1] - The following drugs have successfully added new indications: - Injection of Karelizumab - Fluorazepam Capsules - Injection of Fumaric Acid Tegafur [1] - The following drugs have been renewed and retained in the National Medical Insurance Catalog: - Maleate of Pyrotinib Tablets - Hecorapam Ethanolamine Tablets - Phosphate of Regaglitin Tablets - Injection of Methylsulfonylmethane Remazolam - Sulfate of Pevonedistat Injection [1] - The following drugs have new indications and have been adjusted to regular catalog management: - Mesylate of Apatinib Tablets - Lipid Injection of Bupivacaine [1] Impact on the Company - The inclusion of these drugs in the National Medical Insurance Catalog is expected to positively impact sales, although the exact effect on the company's operational performance is currently indeterminate [1] - The National Medical Insurance Catalog will officially take effect on January 1, 2026, with further details on payment standards and reimbursement rules to be announced by relevant government departments [1]

Core Viewpoint - Jiangsu Hengrui Medicine Co., Ltd. has announced that several of its products have been included in the National Medical Insurance Directory, which is expected to positively impact sales and overall business performance in the future [1][2]. Group 1: Inclusion of Products in National Medical Insurance Directory - The following products have been newly included in the National Medical Insurance Directory: injection of Rukang Qutuzumab, Apixaban Famitinib capsules, injection of Funaqi Qutuzumab, Sulfate Amamxetine tablets, injection of Phosphororapitant Palonosetron, injection of Ruikasi monoclonal antibody, Acetate Abiraterone tablets (II), Liposomal Irinotecan injection (II), and Regaglitin Metformin tablets (I)/(II), as well as Perfluorohexyl Octane eye drops [2]. - Additional indications for injection of Karilizumab, Fluorouracil capsules, and injection of Fumagillin have successfully been added to the National Medical Insurance Directory [2]. - The renewal of the following products has been successfully retained in the National Medical Insurance Directory: Maleate Pyrrolidine tablets, Hecorapam Ethanolamine tablets, Phosphate Regaglitin tablets, injection of Toluene Sulfonate Remazolam, and Sulfate Pevotizumab injection [2]. Group 2: Financial Impact - The total sales of the aforementioned products for the year 2024 are estimated to be approximately 8.66 billion yuan, while the sales for the first three quarters of 2025 are projected to be around 7.55 billion yuan [2]. - The inclusion of these products in the National Medical Insurance Directory is expected to facilitate sales, although the exact impact on the company's operating performance cannot be estimated at this time [2].

Group 1: Market Performance - A number of leading stocks reached historical highs, including well-known industry leaders such as BYD, CITIC Bank, and Xinlitai, as well as niche market leaders like Hengxin Life, which saw a 20% limit-up increase [1] - BYD's stock rose by 4.22%, driving strength in the automotive supply chain, with seven out of the top ten stocks by trading volume belonging to the automotive sector [1] - The Shanghai Composite Index increased by 0.08%, the Shenzhen Component Index rose by 0.5%, and the ChiNext Index gained 0.48% [1] Group 2: Pharmaceutical Sector - The pharmaceutical sector showed strong performance, with significant gains in chemical pharmaceuticals, CRO, medical services, and innovative drugs [5] - Heng Rui Pharmaceutical's listing on the Hong Kong stock market saw a 30.87% increase, boosting sentiment in the pharmaceutical sector [8] - Multiple significant drugs received approval for market entry, including the innovative drug Anglazavir from Guangdong Zhongsheng Pharmaceutical, which led to a limit-up for the company [9]

Core Insights - The report highlights a mixed performance in the A-share market, with the overall trend showing a decline across major indices, particularly in the small-cap sector [6][8] - The banking sector is noted for its resilience, with recent interest rate cuts expected to support net interest margins and attract cautious investors [8][23] - The renewable energy sector, particularly solar power, has shown significant growth, with a 75% year-on-year increase in installed capacity in the first four months of 2025 [25] Market Overview - The A-share market has a total market capitalization of 650258 billion, with the Shanghai Composite Index at a PE ratio of 11.94 and a PB ratio of 1.24 [3] - The Shenzhen Component Index has a higher PE ratio of 20.11, indicating a more expensive valuation compared to the Shanghai index [3] - The ChiNext Index shows a high PE ratio of 26.95, reflecting its growth-oriented nature [3] Economic Indicators - The People's Bank of China conducted a 1545 billion reverse repurchase operation, indicating a proactive approach to manage liquidity in the market [15] - Retail sales of home appliances have maintained double-digit growth for eight consecutive months, with a notable 38.8% increase in April [17] - The total loan balance for technology-based SMEs reached 3.3 trillion, marking a 24% year-on-year increase [20] Industry Dynamics - The banking sector is adjusting deposit rates downward, which is expected to stabilize the net interest margin and support the overall financial system [23] - The power industry reported a 15.9% increase in total installed capacity, with solar energy leading the growth [25] - The collaboration between Proya and Bota Bio aims to leverage synthetic biology for innovation in cosmetics, indicating a trend towards integrating advanced technologies in traditional industries [26][27] Company Developments - Proya has entered a strategic partnership with Bota Bio to explore breakthroughs in beauty science through biotechnology [26][27] - Heng Rui Pharmaceutical received approval for its innovative drug, a combination of DPP-4 inhibitor and metformin, which is expected to enhance its market position in diabetes treatment [28][29] - Guokai Microelectronics is planning a major asset restructuring, focusing on semiconductor manufacturing, which could significantly impact its future growth trajectory [30][31]