China's medical and health sector is the best choice in the "non-AI" field, with strong growth and globalization momentum (HSBC)
The HSBC report pointed out that China's A/H-share healthcare index has rebounded from its stage low.
The HSBC report pointed out that China's A/H-share healthcare index has rebounded from its stage low. The industry is highly competitive with solid growth and globalization momentum, and is the focus of investors' attention, especially in the fields of innovative drugs and CDMOs. The report maintains buy ratings for WuXi Biologics, Pharmaron, Connoya, and Innovent Biologics, believing that there will be performance catalysts in the short term and growth potential in the long term. Currently, investors are still cautious rating China's healthcare sector as a whole, and the market expects that this round of rebound may continue until the interim report is released. Market concerns about centralized procurement and geopolitical risks may have obscured the industry's strong organic growth and progress in globalization. One-sentence conclusion: China's healthcare sector, especially innovative drugs and CDMOs, is rebounding strongly from the bottom of its valuation. Its solid growth and globalization logic make it a very attractive "non-AI" investment theme in the current market environment. Institutional underweighting provides room for repair. Good/bad: Good for WuXi Biologics, Pharmaron, Connoya, Innovent, and other targets rated buy, as well as the entire CRO/CDMO and innovative drug sectors. The current sector is rebounding, but the overall underweighting indicates that there is still room for market sentiment to recover. Catalysts: 1) The upcoming interim results release will verify the growth trend; 2) The progress of commercialization in the US market; 3) Data disclosure from international medical conferences such as ESMO.