Guotai Haitong: Continues to be optimistic about investment opportunities in innovative pharmaceuticals and the industry chain.

Guotai Haitong released a research report stating that the performance of the pharmaceutical sector in the Hong Kong A-share market was divergent, with A-shares outperforming the market in March 2026. In March, Hong Kong biotechnology stocks dropped by 2.9%, while the Hang Seng Index fell by 6.9%. In March, the performance of the healthcare sector in the US stock market was weaker than the overall market, with the S&P healthcare select industry index dropping by 8.3%, while the S&P 500 fell by 5.1%. The bank continues to recommend innovative pharmaceutical and medical equipment companies. Guotai Haitong's main points include: Continuing to recommend innovative pharmaceuticals and the industry chain Maintaining a buy rating on the following A-share targets: Jiangsu Hengrui Pharmaceuticals, Yifang Biotechnology, WuXi AppTec, Asymchem Laboratories, Hangzhou Tigermed Consulting, APT Medical Inc., Topchoice Medical, Acrobiosystems, Shenzhen Salubris Pharmaceuticals, Haisco Pharmaceutical Group, and incorporating these targets into Guotai Haitong's pharmaceutical monthly portfolio for April 2026. Maintaining a buy rating on the following H-share targets: HANSOH PHARMA, 3SBIO, CSPC PHARMA, WuXi AppTec, BEONE MEDICINES, Kellon Probiotechnology, AKESO, Jingfeng Medical, and REMEGEN. The pharmaceutical sector's performance in the A-share market was stronger than the market in March 2026 In March 2026, the Shanghai Composite Index fell by 6.5%, and the SW Pharmaceutical and Biotechnology Index fell by 3.7%, ranking seventh in terms of percentage change among the Shenwan industry level one. The sub-sectors of the biopharmaceutical sector that performed relatively well were chemical preparations (-1.2%), chemical raw materials (-2.2%), and traditional Chinese medicine (-3.3%). The top three stocks in terms of price increase were Ningbo Menovo Pharmaceutical (+82.8%), Hunan Jingfeng Pharmaceutical (+72.1%), and Andon Health (+65.8%). As of the end of March 2026, the premium level of the pharmaceutical sector relative to all A-shares is currently at a normal level, with a relative premium rate of 64.79%. Pharmaceutical sector performance in the Hong Kong A-share market was weaker than the overall market in March 2026 In March 2026, the Hang Seng Healthcare sector dropped by 5.2%, while the Hong Kong biotechnology sector dropped by 2.9%, with the Hang Seng Index declining by 6.9%. The top three stocks in terms of price increase were ANTENGENE-B (+44%), CLOVER BIO-B (+37%), and CHISTAPHARMA-B (+30%). Pharmaceutical sector performance in the US stock market was weaker than the overall market in March 2026 In March 2026, the S&P healthcare select industry index dropped by 8.3%, while the S&P 500 dropped by 5.1%. Among the S&P 500 healthcare component stocks, the top three in terms of price increase were Pfizer (+2%), Hologic (0%), and Regeneron (-1%); the top three in terms of price decrease were Centene (-27%), Boston Scientific (-18%), and Baxter International (-18%). Risk warnings: Intensified cost control in medical insurance, risks of policy implementation falling short of expectations, valuation fluctuation risks, and market volatility risks.