Citi is bullish on the China Medical Health Sector, with AI empowerment driving Ping An Healthcare (01833) to become the preferred stock.
Citi is bullish on the Chinese Medical and health sector, with Ping An Health and others as preferred stocks.
Zhuhai International: The pharmaceutical industry in China is expected to continue the valuation recovery this year, with the market for Innovative Drugs likely to differentiate.
Zhao Yin International published a report indicating that, driven by positive factors such as the export Trade of Innovative Drugs, optimization of domestic procurement policies, the implementation of the Class B medical insurance catalog for Innovative Drugs, the revival of tenders for Medical Devices, and the recovery of domestic demand, the Pharmaceutical Industry is expected to continue experiencing valuation repair in 2025.
The Trump administration plans to impose tariffs on imported Pharmaceuticals, and the U.S. Pharmaceutical Industry warns that it may increase drug costs.
A report commissioned by a trade organization in the USA Pharmaceutical Industry indicates that if the USA imposes a 25% tariff on imported Pharmaceuticals, it could increase the annual Pharmaceutical costs in the USA by nearly 51 billion dollars and raise drug prices by up to 12.9%.
Accelerating recovery? In March, domestic Innovative Drugs investment and financing increased by about 50% year-on-year, and the Hong Kong Stock pharmaceutical Sector collectively surged.
① In March, domestic investment and financing for Innovative Drugs increased by approximately fifty percent year-on-year, how significant is the Bullish impact? ② The Hong Kong stock market's pharmaceutical Sector rose collectively, which stocks are attracting market attention?
[Brokerage Focus] Sinolink: The actual geopolitical risk in the Innovative Drugs Sector is low. In the second half of the year, it is recommended to focus on left-side reversals.
Jinwu Finance | Sinolink's Research Reports indicate that the external tariff environment is changing rapidly, and the pharmaceutical Sector has good risk resistance and growth potential. The geopolitical risk in the Innovative Drugs Sector is very low, and there are opportunities for domestic substitution in Blood Products, Medical Device, and instruments. A reversal in the left-side Sector is imminent after the first quarter report, and attention is recommended. The firm states that in the second half of the year, attention should be given to the left-side reversal, as performance gradually recovers and the fundamentals improve. Focus on the individual stocks in Generic Drugs, chain pharmacies, Medical Device, and Traditional Chinese Medicine that are experiencing difficulties. Throughout the year, it is advised to continuously focus on the main line of Innovative Drugs and semi-Innovative Drugs; additionally, in the short term, attention should be paid to the fluctuations in tariffs regarding Blood Product
Hong Kong stocks in the pharmaceutical sector soared! Kai Medical surged more than 22%. Institutions claim that tariffs have "no impact" on the wave of Innovative Drugs going abroad.
① How do government policy support and the overseas expansion of Innovative Drugs become a new growth engine for Hong Kong stock pharmaceutical companies? ② Why does Zhongtai International believe that tariffs have limited impact on Innovative Drug companies?
Guosen: Focus on the Innovative Drugs that are accelerating their overseas expansion and the service Sector supported by policies.
Guosen recommends paying attention to the Medical Services Sector.
Have Insiders Sold 3SBio Shares Recently?
3SBio's Lung Cancer Drug Gets Breakthrough Therapy Designation in China
Do 3SBio's (HKG:1530) Earnings Warrant Your Attention?
3SBIO (01530.HK): The anti-VEGF/PD-1 bispecific antibody drug 707 injection has received breakthrough therapy designation from the National Medical Products Administration.
On April 17, Glonghui reported that 3SBIO (01530.HK) announced that its self-developed anti-VEGF/PD-1 bispecific antibody (research code: 707 injection) was included as a breakthrough therapy by the National Medical Products Administration on April 17, 2025, for the indication of first-line treatment of locally advanced or metastatic non-small cell lung cancer with positive PD-L1 expression. The 707 injection is a targeted VEGF/PD-1 bispecific antibody independently developed by 3SBIO based on the CLF2 patent platform, and is currently undergoing multiple clinical studies in China, including first-line treatment for PD-L1 expression.
Express News | 3Sbio - 707 Injection (Anti-Vegf/Pd-1 Bispecific Antibody) Granted Breakthrough Therapy Designation by Nmpa
Has the SSE Health Care theme Index risen again? This year, the public fund performance has shuffled, with the highest return of the health care theme Fund exceeding 44%, and Inflow of capital has accelerated.
As of April 16, two SSE Health Care theme Index Funds have entered the top 10 performances of actively managed equity funds this year; Since April, multiple Hwabao WP CSI Medical Service ETFs have seen significant net subscriptions, with the total amount of fund shares for these medical ETFs reaching a new high; Fund managers believe that the pharmaceutical sector is not just undervalued in parts, but is comprehensively undervalued, and the nature of Innovative Drugs has changed.
Brokerage morning meeting highlights: The current rare earth Sector is well-prepared for both offense and defense, it is recommended to pay active attention.
In today's Brokerage morning meeting, China Securities Co.,Ltd. proposed that the current Rare Earth Sector has both offensive and defensive capabilities, suggesting active attention; HTSC indicated that the AI Medical industry trend is accelerating; China International Capital Corporation believes that the total telecom capital expenditure will be under pressure in 2025, focusing on structural growth opportunities such as computing power and 5G-A.
Caitong: Innovative Drugs and Medical Devices remain an important main line in this round of the bull market in the Medical industry.
The country is likely to accelerate the introduction of policies to encourage expanded domestic demand, which is Bullish for the sectors focused on domestic consumption, including Traditional Chinese Medicine, Medical Services, Internet medicine and pharmacies, medical aesthetics, etc., as an extension of the Health China logic.
Tariffs Loom as US Investigates Drug and Chip Imports
Sinolink: Innovative Drugs will be the main growth line in the Pharmaceutical Sector, bringing investment opportunities for left-side sector stocks after the Q1 report.
The reversal of market conditions and improvement in performance after the quarterly report will also bring investment opportunities in individual stocks in sectors such as chain pharmacies, Medical Devices, CXO, generic drugs, Traditional Chinese Medicine, and Medical Services, and it is recommended to increase investment.
Brokerage morning meeting highlights: The short-term bottom of the A-shares has already formed, looking for structural opportunities amid fluctuations.
At today's Brokerage morning meeting, Everbright believes that the market may mainly feature structural trends and hot sector rotations; Sinolink stated that they remain Bullish on the growth potential of Innovative Drugs companies in the Hong Kong and A shares markets; Galaxy Securities indicated that a short-term bottom in A shares has already formed and is seeking structural opportunities amidst the fluctuations.
Prelude to increased tariffs? The Trump administration has initiated a Section 232 investigation into pharmaceuticals and Semiconductors.
① The USA government disclosed on Monday that it has launched an investigation into the impact of imported Pharmaceuticals and Semiconductors on National Security; ② This is widely seen as a prelude to imposing tariffs on prescription drugs and Semiconductors, and it could further escalate the trade war initiated by the USA.
AI replacing animal experiments? A message from the FDA has left "monkey breeders" feeling devastated, and experts state that "we are still far from the stage of implementation."
① The news that the USA FDA has publicly stated it will gradually replace animal testing requirements has led to an increase in the stock prices of AI pharmaceutical companies, impacting traditional drug evaluation CRO companies; ② Some believe this action represents a trend in Industry development. However, others believe that it is far from being implementable.