Daily Investment Strategy
Daily focus：Hengrui Pharma（1276）
Hengrui Pharma delivered strong performance in the first half of 2025, achieving operating revenue of RMB 15.761 billion, representing a year-on-year increase of 15.88%. Net profit attributable to shareholders of the listed company reached RMB 4.45 billion, up 29.67%. The company’s sales and licensing income from innovative drugs increased significantly to RMB 9.561 billion, accounting for more than 60% of total revenue. Several core products received high recognition in clinical practice, driving continuous sales growth. Meanwhile, partnerships with major international pharmaceutical companies like Merck and GSK generated licensing income worth hundreds of millions of RMB, becoming a major driver of performance growth. Facing challenges from volume-based procurement of generic drugs, the expansion of high-quality new products effectively compensated for some revenue declines.
Jackson Hole Symposium
At the Jackson Hole Symposium, Powell stated that the "risk balance appears to be shifting," hinting at a possible rate cut in September. This comment sparked a strong global stock market rebound, with the Dow Jones hitting its first high of the year. Powell noted that the labor market is stable but in a "delicate balance," inflation risks have eased, and the policy stance may need to be adjusted to support economic growth. Market expectations for a rate cut in September surged from 73% to 89%. This policy shift was mainly influenced by weak July employment data, with job additions falling far short of expectations and earlier data significantly revised downwards, indicating a slowdown in U.S. economic momentum. Despite continued inflationary pressure from Trump’s tariff policies, Powell expressed confidence for the first time that the inflation impact would be relatively short-lived, providing room for a monetary policy shift.
On Friday, the Hong Kong Stock Connect recorded a net inflow of HKD 5.16 billion, with Kuaishou (1024) seeing the largest net inflow of HKD 1.17 billion, followed by SMIC (981). On the other hand, XPeng Motors (9868) recorded the largest net outflow of HKD 1.31 billion, followed by Xiaomi Group (1810).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to: https://apps.sfc.https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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