<Research> CLSA Views CN Biopharma Stock Decline as Attractive Buying Chance, Prefers CSPC PHARMA and SINOPHARM
Market Volatility: China's biotechnology and innovative drug industry is facing volatility due to overvaluation, uncertainty in drug pricing, and delayed business expansions, as reported by CLSA.
Investment Opportunities: Despite the current pullback, CLSA views it as a healthy consolidation, presenting attractive investment opportunities for the upcoming year.
CSPC PHARMA Concerns: CSPC PHARMA's weakened business expansion execution has led to a downgrade in investor confidence, but CLSA believes this may create better buying opportunities.
SINOPHARM Recovery: CLSA anticipates improvements in SINOPHARM's accounts receivable and the support of China's 15th Five-Year Plan to enhance the company's earnings momentum.
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Midday Update: HSI Ends at 26,724, Down 109 Points; HSTI at 5,347, Down 119 Points; TENCENT Falls Over 3%; XINYI GLASS, TECHTRONIC IND, WHARF REIC, YANKUANG ENERGY, and CHINA EAST AIR Reach New Highs
Market Performance: The HSI dropped 109 points (0.4%) to 26,724, while the HSTI fell 119 points (2.2%) to 5,347, and the HSCEI decreased by 48 points (0.5%) to 9,004.
Active Heavyweights: Major stocks like TENCENT, XIAOMI, and MEITUAN saw declines, with TENCENT down 3.4% and XIAOMI down 2.6%, while BABA fell 0.9%.
Notable Movers: XINYI GLASS and CHINA SHENHUA experienced significant gains, with XINYI GLASS up 6.2% and CHINA SHENHUA up 5.4%, while TRIP.COM-S dropped 6.1%.
Short Selling Trends: High short selling ratios were observed in several stocks, including XIAOMI (20.155%) and MEITUAN (17.261%), indicating increased bearish sentiment among investors.
<Daily Summary> HSI Ends at 26,834, Gaining 59 Points; HSTI Finishes at 5,467, Losing 59 Points; CSPC PHARMA Surges Over 8%; NEW ORIENTAL, HSBC HOLDINGS, MTR CORPORATION, POWER ASSETS, CIMC Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 59 points (0.2%) to 26,834, while the HSTI and HSCEI fell by 59 points (1.1%) and 27 points (0.3%) respectively, with a total market turnover of $335.15 billion.
Active Heavyweights: Major stocks like Tencent, Meituan, and Alibaba saw declines, with Tencent closing down 2.9% at $581, while Ping An was the only heavyweight to gain, closing up 0.8% at $71.3.
Notable Movers: CSPC Pharma and New Oriental experienced significant gains, rising 8.1% and 6.4% respectively, while Kuaishou-W and Baidu-SW faced notable declines, down 4.6% and 3.6%.
High Performers: CIMC and Wanguo Gold GP were standout performers, with CIMC surging 15% and Wanguo Gold GP increasing by 13.6%, both hitting new highs.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
CICC Increases CSPC PHARMA (01093.HK) Price Target to $12, Expects Ongoing Out-licensing Success
CSPC Pharma Collaboration: CSPC Pharma has authorized AstraZeneca to exclusively develop and commercialize eight innovative long-acting peptide medicine projects globally, with AstraZeneca set to pay $1.2 billion upfront and potential milestone payments totaling up to $17.3 billion.
Market Performance: CSPC Pharma's stock has seen a decline of 3.333%, with short selling amounting to $111.61 million and a ratio of 8.919%.
Research and Development Pipeline: The company is advancing its R&D pipeline with innovative assets like the EGF RADC/SiRNA series and expects continued out-licensing and milestone revenue recognition.
Earnings Forecast and Target Price: CICC has maintained its earnings forecasts for 2025 and 2026 while introducing a new forecast for 2027, raising the target price by 9.1% to $12, while keeping the rating at Outperform.
BofAS Sets CSPC PHARMA (01093.HK) Target Price at $9.1, Maintains Underperform Rating Due to Sales Challenges
CSPC Pharma Agreement: CSPC Pharma has entered into a partnership with AstraZeneca to develop long-acting peptide medicines, with the agreement potentially valued at up to $18.5 billion.
Financial Details: The deal includes an upfront payment of $1.2 billion, with additional potential payments of up to $3.5 billion for R&D milestones and $13.8 billion for sales milestones.
Market Reaction: Following the announcement, BofA Securities raised CSPC's target price from $8.5 to $9.1 but maintained an "Underperform" rating due to anticipated sales pressure on existing products and limited short-term contributions from the R&D pipeline.
Short Selling Information: CSPC Pharma is experiencing significant short selling, with a total of $1.27 billion and a short selling ratio of 22.865%.
CSPC PHARMA Sees HKD934.6M Net Inflow from Southbound Trading
Southbound Trading Inflows: CSPC PHARMA (01093.HK) saw a significant net inflow of HKD934.6 million, while ZIJIN MINING (02899.HK) experienced a net outflow of HKD635.5 million in Southbound Trading.
Short Selling Activity: CSPC PHARMA had a short selling amount of $1.27 billion with a ratio of 22.865%, while ZIJIN MINING reported $1.03 billion in short selling with a ratio of 13.018%.
Most Active Stocks: In the Shanghai-Hong Kong Stock Connect, CSPC PHARMA was the most active stock with the highest net inflow, while CNOOC (00883.HK) had the highest net outflow. In the Shenzhen-Hong Kong Stock Connect, TRACKER FUND (02800.HK) led in inflows, and ZIJIN MINING led in outflows.
Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 38.62% of the total transaction amount of HKD116.49 billion.
Midday Update: HSI Ends at 26,724, Down 109 Points; HSTI at 5,347, Down 119 Points; TENCENT Falls Over 3%; XINYI GLASS, TECHTRONIC IND, WHARF REIC, YANKUANG ENERGY, and CHINA EAST AIR Reach New Highs
Market Performance: The HSI dropped 109 points (0.4%) to 26,724, while the HSTI fell 119 points (2.2%) to 5,347, and the HSCEI decreased by 48 points (0.5%) to 9,004.
Active Heavyweights: Major stocks like TENCENT, XIAOMI, and MEITUAN saw declines, with TENCENT down 3.4% and XIAOMI down 2.6%, while BABA fell 0.9%.
Notable Movers: XINYI GLASS and CHINA SHENHUA experienced significant gains, with XINYI GLASS up 6.2% and CHINA SHENHUA up 5.4%, while TRIP.COM-S dropped 6.1%.
Short Selling Trends: High short selling ratios were observed in several stocks, including XIAOMI (20.155%) and MEITUAN (17.261%), indicating increased bearish sentiment among investors.
<Daily Summary> HSI Ends at 26,834, Gaining 59 Points; HSTI Finishes at 5,467, Losing 59 Points; CSPC PHARMA Surges Over 8%; NEW ORIENTAL, HSBC HOLDINGS, MTR CORPORATION, POWER ASSETS, CIMC Reach New Peaks; Market Turnover Increases
Market Performance: The HSI rose by 59 points (0.2%) to 26,834, while the HSTI and HSCEI fell by 59 points (1.1%) and 27 points (0.3%) respectively, with a total market turnover of $335.15 billion.
Active Heavyweights: Major stocks like Tencent, Meituan, and Alibaba saw declines, with Tencent closing down 2.9% at $581, while Ping An was the only heavyweight to gain, closing up 0.8% at $71.3.
Notable Movers: CSPC Pharma and New Oriental experienced significant gains, rising 8.1% and 6.4% respectively, while Kuaishou-W and Baidu-SW faced notable declines, down 4.6% and 3.6%.
High Performers: CIMC and Wanguo Gold GP were standout performers, with CIMC surging 15% and Wanguo Gold GP increasing by 13.6%, both hitting new highs.
<Midday Update> HSI Ends Midday at 26,830, Gaining 54 Points; HSTI Ends Midday at 5,453, Losing 72 Points; TENCENT Falls More Than 3%; MTR CORPORATION, POWER ASSETS, CIMC, ZOOMLION, FIH Reach New Peaks
Market Performance: The HSI rose by 54 points (0.2%) to 26,830, while the HSTI and HSCEI fell by 72 points (1.3%) and 19 points (0.2%) respectively.
Active Heavyweights: Major stocks like Tencent, Alibaba, and Meituan experienced declines, with Tencent down 4.0% and Alibaba down 2.3%, while Ping An saw a slight increase of 0.9%.
Notable Movers: CSPC Pharma and CKH Holdings saw significant gains, up 3.5% and 3.4% respectively, while Kuaishou-W dropped 5.1%.
High Performers: Stocks like Fangzhou Jianke and CIMC achieved notable increases of 15.3% and 16.1%, reaching new highs in their respective performances.
CICC Increases CSPC PHARMA (01093.HK) Price Target to $12, Expects Ongoing Out-licensing Success
CSPC Pharma Collaboration: CSPC Pharma has authorized AstraZeneca to exclusively develop and commercialize eight innovative long-acting peptide medicine projects globally, with AstraZeneca set to pay $1.2 billion upfront and potential milestone payments totaling up to $17.3 billion.
Market Performance: CSPC Pharma's stock has seen a decline of 3.333%, with short selling amounting to $111.61 million and a ratio of 8.919%.
Research and Development Pipeline: The company is advancing its R&D pipeline with innovative assets like the EGF RADC/SiRNA series and expects continued out-licensing and milestone revenue recognition.
Earnings Forecast and Target Price: CICC has maintained its earnings forecasts for 2025 and 2026 while introducing a new forecast for 2027, raising the target price by 9.1% to $12, while keeping the rating at Outperform.
BofAS Sets CSPC PHARMA (01093.HK) Target Price at $9.1, Maintains Underperform Rating Due to Sales Challenges
CSPC Pharma Agreement: CSPC Pharma has entered into a partnership with AstraZeneca to develop long-acting peptide medicines, with the agreement potentially valued at up to $18.5 billion.
Financial Details: The deal includes an upfront payment of $1.2 billion, with additional potential payments of up to $3.5 billion for R&D milestones and $13.8 billion for sales milestones.
Market Reaction: Following the announcement, BofA Securities raised CSPC's target price from $8.5 to $9.1 but maintained an "Underperform" rating due to anticipated sales pressure on existing products and limited short-term contributions from the R&D pipeline.
Short Selling Information: CSPC Pharma is experiencing significant short selling, with a total of $1.27 billion and a short selling ratio of 22.865%.
CSPC PHARMA Sees HKD934.6M Net Inflow from Southbound Trading
Southbound Trading Inflows: CSPC PHARMA (01093.HK) saw a significant net inflow of HKD934.6 million, while ZIJIN MINING (02899.HK) experienced a net outflow of HKD635.5 million in Southbound Trading.
Short Selling Activity: CSPC PHARMA had a short selling amount of $1.27 billion with a ratio of 22.865%, while ZIJIN MINING reported $1.03 billion in short selling with a ratio of 13.018%.
Most Active Stocks: In the Shanghai-Hong Kong Stock Connect, CSPC PHARMA was the most active stock with the highest net inflow, while CNOOC (00883.HK) had the highest net outflow. In the Shenzhen-Hong Kong Stock Connect, TRACKER FUND (02800.HK) led in inflows, and ZIJIN MINING led in outflows.
Overall Trading Summary: The total Southbound Trading net outflow was HKD0, accounting for 38.62% of the total transaction amount of HKD116.49 billion.
