JPM Selects AKESO, HANSOH PHARMA, and WUXI APPTEC as Preferred Choices; Pharma Market Correction Offers Support for Next Year
Market Pullback: China healthcare stocks have seen a significant decline since early October, with the Hang Seng Healthcare Index down 12% and the CSI 300 Healthcare Index down 9%, contrasting with a minor drop in the HSI and a rise in the CSI 300 Index.
Contributing Factors: The pullback is attributed to increased US-China tensions, geopolitical risks leading to profit-taking by investors, and uncertainties surrounding the US Biosecure Act affecting pharmaceutical outsourcing.
JPMorgan's Outlook: Despite the current pullback, JPMorgan believes it will create favorable conditions for next year's performance, highlighting several top stock picks in the healthcare sector.
Highlighted Stocks: JPMorgan's recommended stocks include AKESO, HANSOH PHARMA, WUXI APPTEC, INNOVENT BIO, and HENGRUI PHARMA, with varying short selling ratios indicating market sentiment.
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Nomura Maintains Buy Rating on HENGRUI PHARMA, Lowers Target Price to HKD87.49; Anticipates 30% Increase in 2026 Net Profit
4Q25 Revenue Expectations: Nomura anticipates HENGRUI PHARMA will achieve a 7% YoY increase in revenue to RMB8.3 billion, falling short of the market expectation of RMB9.5 billion, with drug sales expected to grow by 14% YoY.
Profit Margin Projections: The gross profit margin is estimated to rise to 86.5%, while the operating profit margin is projected to expand to 24.2%, leading to a 32% YoY increase in net profit attributable to shareholders, reaching RMB2.3 billion.
2026 Revenue Forecast: For 2026, Nomura forecasts an 18% revenue growth to RMB37.2 billion, with drug sales increasing by 9% YoY and external licensing revenue contributing RMB6 billion, alongside improved profit margins.
Target Price Adjustment: Nomura has reduced HENGRUI PHARMA's target price from HKD94.54 to HKD87.49 but maintains a Buy rating on the stock.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted H Shares
Top Shorted Stocks: S&P Global Market Intelligence identified the top ten most shorted stocks in Hong Kong, with metrics including the number of shares lent and short selling ratios.
HTSC Highlights: HTSC (06886.HK) leads with a short selling ratio of 43.867% and a significant short selling amount of $129.04 million, despite a recent price drop.
Other Notable Stocks: Other stocks with high short selling ratios include PING AN (30.985%) and COSCO SHIP HOLD (29.243%), indicating investor skepticism.
Market Trends: The data reflects ongoing trends in the Hong Kong stock market, with various companies experiencing fluctuations in share prices alongside their short selling activities.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong
Top Shorted Stocks in Hong Kong: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics including the number of shares borrowed and short selling ratios.
Notable Stocks: Key stocks include Ping An with a short selling ratio of 39.57%, COSCO Ship Hold at 23.71%, and Hengrui Pharma at 18.79%, reflecting significant investor skepticism.
Market Trends: The report indicates a mixed performance in stock prices over the past week, with some stocks experiencing gains while others faced declines.
Market Insights: Analysts, including those from M Stanley, suggest that the recent uptrend in the Chinese property sector may not be sustainable, predicting potential declines in home sales and prices.
JD's Shen Jianguang: Rapid Growth of AI Infrastructure Enhances Hong Kong's Competitive Advantage
Hong Kong's AI Development Environment: Hong Kong is recognized as a vibrant and internationalized hub for AI companies, facilitating business expansion and innovation, according to Shen Jianguang, Vice President and Chief Economist of JD-SW.
Strategic Advantages in AI: The city is expected to leverage its rapid AI infrastructure development to enhance its position in data science, fintech, and intelligent manufacturing, serving as a bridge between mainland China and global markets.
Biomedical Technology Cooperation: Dai Hongbin, Vice Chairman of HENGRUI PHARMA, emphasized the importance of Hong Kong's strategic role in the international innovation ecosystem and expressed interest in collaborating with the Office for Attracting Strategic Enterprises to advance biomedical technology.
Market Activity: The article notes current short selling statistics for Hong Kong stocks, indicating significant market activity, with specific figures for JD-SW and HENGRUI PHARMA.
M Stanley Reduces Revenue and NP Projections for HENGRUI PHARMA (01276.HK), Raises Target Price to $92
Revenue Forecast Adjustment: Morgan Stanley has lowered its total revenue forecasts for HENGRUI PHARMA for 2025-2027 by 2.1%, 3.7%, and 1.8% due to decreased commercial development income from GlaxoSmithKline assets and a decline in the generic drug business.
Net Profit Forecast Reduction: The broker also reduced its net profit forecasts for the same period by 7.4%, 8.9%, and 6.5%, although this was partially offset by higher forecasts for innovative drug sales.
Target Price Increase: Despite the lowered forecasts, Morgan Stanley raised its target price for HENGRUI PHARMA from $86 to $92, maintaining an Overweight rating.
Market Activity: The stock experienced a short selling of $25.50 million, with a short selling ratio of 25.531%.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong (Table)
Top Shorted Stocks: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics based on the short selling ratio, which measures shares lent out relative to total issued shares.
Leading Stocks: COSCO SHIP HOLD topped the list with a short selling ratio of 40.396%, followed by DONGFANG ELEC and PHARMARON with ratios of 19.528% and 34.783%, respectively.
Stock Performance: The report includes recent price changes and short selling amounts, indicating varying performance among the listed stocks over the past week.
Market Insights: The data reflects investor sentiment and market dynamics, with significant short selling activity observed in companies like PING AN and ZTE, highlighting potential concerns or speculation in the market.
Nomura Maintains Buy Rating on HENGRUI PHARMA, Lowers Target Price to HKD87.49; Anticipates 30% Increase in 2026 Net Profit
4Q25 Revenue Expectations: Nomura anticipates HENGRUI PHARMA will achieve a 7% YoY increase in revenue to RMB8.3 billion, falling short of the market expectation of RMB9.5 billion, with drug sales expected to grow by 14% YoY.
Profit Margin Projections: The gross profit margin is estimated to rise to 86.5%, while the operating profit margin is projected to expand to 24.2%, leading to a 32% YoY increase in net profit attributable to shareholders, reaching RMB2.3 billion.
2026 Revenue Forecast: For 2026, Nomura forecasts an 18% revenue growth to RMB37.2 billion, with drug sales increasing by 9% YoY and external licensing revenue contributing RMB6 billion, alongside improved profit margins.
Target Price Adjustment: Nomura has reduced HENGRUI PHARMA's target price from HKD94.54 to HKD87.49 but maintains a Buy rating on the stock.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted H Shares
Top Shorted Stocks: S&P Global Market Intelligence identified the top ten most shorted stocks in Hong Kong, with metrics including the number of shares lent and short selling ratios.
HTSC Highlights: HTSC (06886.HK) leads with a short selling ratio of 43.867% and a significant short selling amount of $129.04 million, despite a recent price drop.
Other Notable Stocks: Other stocks with high short selling ratios include PING AN (30.985%) and COSCO SHIP HOLD (29.243%), indicating investor skepticism.
Market Trends: The data reflects ongoing trends in the Hong Kong stock market, with various companies experiencing fluctuations in share prices alongside their short selling activities.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong
Top Shorted Stocks in Hong Kong: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics including the number of shares borrowed and short selling ratios.
Notable Stocks: Key stocks include Ping An with a short selling ratio of 39.57%, COSCO Ship Hold at 23.71%, and Hengrui Pharma at 18.79%, reflecting significant investor skepticism.
Market Trends: The report indicates a mixed performance in stock prices over the past week, with some stocks experiencing gains while others faced declines.
Market Insights: Analysts, including those from M Stanley, suggest that the recent uptrend in the Chinese property sector may not be sustainable, predicting potential declines in home sales and prices.
JD's Shen Jianguang: Rapid Growth of AI Infrastructure Enhances Hong Kong's Competitive Advantage
Hong Kong's AI Development Environment: Hong Kong is recognized as a vibrant and internationalized hub for AI companies, facilitating business expansion and innovation, according to Shen Jianguang, Vice President and Chief Economist of JD-SW.
Strategic Advantages in AI: The city is expected to leverage its rapid AI infrastructure development to enhance its position in data science, fintech, and intelligent manufacturing, serving as a bridge between mainland China and global markets.
Biomedical Technology Cooperation: Dai Hongbin, Vice Chairman of HENGRUI PHARMA, emphasized the importance of Hong Kong's strategic role in the international innovation ecosystem and expressed interest in collaborating with the Office for Attracting Strategic Enterprises to advance biomedical technology.
Market Activity: The article notes current short selling statistics for Hong Kong stocks, indicating significant market activity, with specific figures for JD-SW and HENGRUI PHARMA.
M Stanley Reduces Revenue and NP Projections for HENGRUI PHARMA (01276.HK), Raises Target Price to $92
Revenue Forecast Adjustment: Morgan Stanley has lowered its total revenue forecasts for HENGRUI PHARMA for 2025-2027 by 2.1%, 3.7%, and 1.8% due to decreased commercial development income from GlaxoSmithKline assets and a decline in the generic drug business.
Net Profit Forecast Reduction: The broker also reduced its net profit forecasts for the same period by 7.4%, 8.9%, and 6.5%, although this was partially offset by higher forecasts for innovative drug sales.
Target Price Increase: Despite the lowered forecasts, Morgan Stanley raised its target price for HENGRUI PHARMA from $86 to $92, maintaining an Overweight rating.
Market Activity: The stock experienced a short selling of $25.50 million, with a short selling ratio of 25.531%.
S&P Global Market Intelligence Reveals Recent Top 10 Most Shorted Stocks in Hong Kong (Table)
Top Shorted Stocks: S&P Global Market Intelligence identified the ten most shorted stocks in Hong Kong, with metrics based on the short selling ratio, which measures shares lent out relative to total issued shares.
Leading Stocks: COSCO SHIP HOLD topped the list with a short selling ratio of 40.396%, followed by DONGFANG ELEC and PHARMARON with ratios of 19.528% and 34.783%, respectively.
Stock Performance: The report includes recent price changes and short selling amounts, indicating varying performance among the listed stocks over the past week.
Market Insights: The data reflects investor sentiment and market dynamics, with significant short selling activity observed in companies like PING AN and ZTE, highlighting potential concerns or speculation in the market.
