JPM Identifies CN Healthcare Sector Decline as Buying Opportunity, Increases Price Targets for INNOVENT BIO and WUXI XDC
Market Overview: JPMorgan's report indicates that the Chinese healthcare sector has seen a retreat due to price negotiations and profit-taking, but the fundamentals remain strong, presenting a buying opportunity for 2026.
Stock Recommendations: The broker favors biotechnology and CXO sectors, highlighting top picks such as INNOVENT BIO, SKB BIO-B, WUXI APPTEC, and WUXI XDC, along with a positive outlook for MEDBOT-B in medical technology.
Target Price Adjustments: JPMorgan has adjusted target prices for several stocks, lowering AKESO's target from HKD166 to HKD149 while maintaining an Overweight rating, and slightly increasing INNOVENT BIO's target from HKD110 to HKD111.
Performance Metrics: The report includes short selling data for the highlighted stocks, indicating varying levels of short interest, with WUXI APPTEC and WUXI XDC showing significant short selling ratios.
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CICC: INNOVENT BIO (01801.HK) Sees Robust Growth Driven by Innovation; 2026 Earnings Outlook Upgraded
Company Performance: INNOVENT BIO (01801.HK) forecasts a 2025 product revenue of approximately RMB11.9 billion, reflecting a 45% year-over-year increase, with Q4 2025 revenue expected to reach RMB3.3 billion, up over 60% YoY.
Profit Forecasts: Following the 2026 Takeda collaboration, CICC raised its 2026 net profit forecast for INNOVENT BIO by 274% to RMB6.68 billion and introduced a 2027 forecast of RMB4.14 billion, maintaining an Outperform rating.
Target Price: Despite a recent decline in innovative drug valuations, CICC kept its target price for INNOVENT BIO at $118.3, indicating a potential upside of 48.06% from the current share price.
Market Activity: The company has experienced significant short selling activity, with $213 million shorted and a ratio of 32.3%, indicating market skepticism despite positive forecasts.
BofAS Maintains Buy Rating on INNOVENT BIO with Target Price of HKD 113.5
Strong Financial Performance: INNOVENT BIO reported a significant revenue increase for 4Q25, with a 45% year-over-year growth to RMB11.9 billion, aligning with BofA Securities' expectations.
Key Investor Insights: Six of INNOVENT BIO's products are set to be included in the 2026 National Reimbursement Drug List, which may lead to price cuts, while inventory price adjustments impacted 4Q25 growth.
Analyst Ratings: BofA Securities maintains a Buy rating on INNOVENT BIO, setting a target price of HKD113.5, reflecting confidence in the company's future performance.
Market Activity: The stock experienced a short selling of $213 million, with a ratio of 32.3%, indicating notable market interest and activity.
INNOVENT BIO Rises Approximately 6% Following Global Partnership with Eli Lilly
Stock Performance: INNOVENT BIO (01801.HK) saw a significant increase in stock price, opening nearly 4.7% higher and reaching a 5.9% rise to $84.2 during the morning session, with a trading volume of 3.895 million shares.
Strategic Collaboration: The company has entered a global strategic collaboration with Eli Lilly and Company to develop novel medicines in oncology and immunology, with INNOVENT BIO leading the development in China.
Financial Terms: As part of the agreement, INNOVENT BIO will receive a $350 million upfront payment and is eligible for up to approximately $8.5 billion in milestone payments based on future achievements.
Market Insights: Analysts from G Sachs have noted strong product sales for INNOVENT BIO last year, setting a target price of $102.85 and maintaining a "Buy" rating.
<Research>HSBC Identifies Hong Kong Stocks Receiving the Most Institutional Interest (Table)
Stock Performance Overview: Various stocks including AIA, Alibaba, and BYD showed mixed performance with AIA and Alibaba experiencing gains, while SMIC saw a decline.
Short Selling Data: Significant short selling activity was noted across multiple stocks, with BYD and SHK PPT having the highest short selling ratios at 34.941% and 35.602%, respectively.
Investment Ratings: Analysts have given "Buy" ratings to several companies including Alibaba, BOC Hong Kong, and Trip.com, while AIA is rated as "Hold."
Market Insights: JPMorgan estimates Alibaba's T-Head valuation to be between US$25-62 billion, indicating that a spinoff and separate listing is unlikely this year.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
<Full-day Summary> HSI Falls by 281 Points; HSTI Declines by 72 Points; BABA Drops More than 3%; SINOPEC CORP, LI NING, NEW WORLD DEV, NANSHAN AL INTL, and CHINA EAST AIR Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 281 points (1.0%) to close at 26,563, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $225.69 billion.
Active Heavyweights: Major stocks like Alibaba, Xiaomi, Meituan, Tencent, and Ping An saw declines, with Alibaba dropping 3.5% to $160.4 and Xiaomi down 1.7% to $36.48, amidst significant short selling activity.
Notable Movers: Sino Biopharma and Wuxi Biologics faced substantial losses, with declines of 6.2% and 4.8% respectively, while Sinopec Corp and Li Ning recorded gains, with Sinopec up 3.3% to $4.95.
High Volatility Stocks: Qunabox Group surged by 38.8% to $35, while Hao Tian International plummeted by 22.3% to $0.101, indicating significant volatility in smaller stocks within the market.
CICC: INNOVENT BIO (01801.HK) Sees Robust Growth Driven by Innovation; 2026 Earnings Outlook Upgraded
Company Performance: INNOVENT BIO (01801.HK) forecasts a 2025 product revenue of approximately RMB11.9 billion, reflecting a 45% year-over-year increase, with Q4 2025 revenue expected to reach RMB3.3 billion, up over 60% YoY.
Profit Forecasts: Following the 2026 Takeda collaboration, CICC raised its 2026 net profit forecast for INNOVENT BIO by 274% to RMB6.68 billion and introduced a 2027 forecast of RMB4.14 billion, maintaining an Outperform rating.
Target Price: Despite a recent decline in innovative drug valuations, CICC kept its target price for INNOVENT BIO at $118.3, indicating a potential upside of 48.06% from the current share price.
Market Activity: The company has experienced significant short selling activity, with $213 million shorted and a ratio of 32.3%, indicating market skepticism despite positive forecasts.
BofAS Maintains Buy Rating on INNOVENT BIO with Target Price of HKD 113.5
Strong Financial Performance: INNOVENT BIO reported a significant revenue increase for 4Q25, with a 45% year-over-year growth to RMB11.9 billion, aligning with BofA Securities' expectations.
Key Investor Insights: Six of INNOVENT BIO's products are set to be included in the 2026 National Reimbursement Drug List, which may lead to price cuts, while inventory price adjustments impacted 4Q25 growth.
Analyst Ratings: BofA Securities maintains a Buy rating on INNOVENT BIO, setting a target price of HKD113.5, reflecting confidence in the company's future performance.
Market Activity: The stock experienced a short selling of $213 million, with a ratio of 32.3%, indicating notable market interest and activity.
INNOVENT BIO Rises Approximately 6% Following Global Partnership with Eli Lilly
Stock Performance: INNOVENT BIO (01801.HK) saw a significant increase in stock price, opening nearly 4.7% higher and reaching a 5.9% rise to $84.2 during the morning session, with a trading volume of 3.895 million shares.
Strategic Collaboration: The company has entered a global strategic collaboration with Eli Lilly and Company to develop novel medicines in oncology and immunology, with INNOVENT BIO leading the development in China.
Financial Terms: As part of the agreement, INNOVENT BIO will receive a $350 million upfront payment and is eligible for up to approximately $8.5 billion in milestone payments based on future achievements.
Market Insights: Analysts from G Sachs have noted strong product sales for INNOVENT BIO last year, setting a target price of $102.85 and maintaining a "Buy" rating.
<Research>HSBC Identifies Hong Kong Stocks Receiving the Most Institutional Interest (Table)
Stock Performance Overview: Various stocks including AIA, Alibaba, and BYD showed mixed performance with AIA and Alibaba experiencing gains, while SMIC saw a decline.
Short Selling Data: Significant short selling activity was noted across multiple stocks, with BYD and SHK PPT having the highest short selling ratios at 34.941% and 35.602%, respectively.
Investment Ratings: Analysts have given "Buy" ratings to several companies including Alibaba, BOC Hong Kong, and Trip.com, while AIA is rated as "Hold."
Market Insights: JPMorgan estimates Alibaba's T-Head valuation to be between US$25-62 billion, indicating that a spinoff and separate listing is unlikely this year.
Guosen Securities Reveals Top 10 HK Stocks with Highest Foreign Capital Inflows and Outflows in Q4 2025 (Table)
Top Inflows: Guosen Securities reported the top ten Hong Kong stocks with the largest foreign capital inflows in 4Q25, led by INNOVENT BIO with an inflow of HKD6.43 billion.
Top Outflows: The report also highlighted the top ten stocks with the largest foreign capital outflows, with XIAOMI-W experiencing the highest outflow of HKD50.41 billion.
Short Selling Data: The report included short selling data for each stock, indicating significant short selling activity, particularly for XIAOMI-W and HSBC HOLDINGS.
Market Trends: The report reflects ongoing trends in the Hong Kong stock market, with notable shifts in foreign investment and short selling strategies among major companies.
<Full-day Summary> HSI Falls by 281 Points; HSTI Declines by 72 Points; BABA Drops More than 3%; SINOPEC CORP, LI NING, NEW WORLD DEV, NANSHAN AL INTL, and CHINA EAST AIR Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 281 points (1.0%) to close at 26,563, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines, with market turnover reaching $225.69 billion.
Active Heavyweights: Major stocks like Alibaba, Xiaomi, Meituan, Tencent, and Ping An saw declines, with Alibaba dropping 3.5% to $160.4 and Xiaomi down 1.7% to $36.48, amidst significant short selling activity.
Notable Movers: Sino Biopharma and Wuxi Biologics faced substantial losses, with declines of 6.2% and 4.8% respectively, while Sinopec Corp and Li Ning recorded gains, with Sinopec up 3.3% to $4.95.
High Volatility Stocks: Qunabox Group surged by 38.8% to $35, while Hao Tian International plummeted by 22.3% to $0.101, indicating significant volatility in smaller stocks within the market.
