Yumin International: China Meheco Group's industry reappears at the bottom opportunity, recommending HANSOH PHARMA (03692), INNOVENT BIO (01801), etc.

China Merchants International released a research report stating that the MSCI China Healthcare Index has cumulatively fallen by 11.4% since the beginning of 2026, outperforming the MSCI China Index by 0.2%. The bank believes that the recent correction in the pharmaceutical industry has been mainly affected by factors such as fund availability, policies, and the political situation of GEO Group Inc, but the long-term trend of Chinese innovative drugs and medical devices going global remains unchanged. From a policy perspective, standardizing the marketing process will benefit the commercialization of innovative drugs with clinical value, and the policy support for innovative drugs remains unchanged, with biomedicine positioned as a pillar industry, indicating bottoming opportunities for the industry. The bank pointed out that industry capital has sparked a wave of buybacks and increased holdings, with the cumulative repurchase amount of the Hong Kong stock pharmaceutical sector reaching 5.69 billion Hong Kong dollars since the beginning of the year, including SBP GROUP (01177) planning to repurchase up to 2 billion Hong Kong dollars, JD HEALTH (06618) planning to repurchase up to 1 billion U.S. dollars, and major shareholders are also actively increasing their holdings, further releasing signals of the bottom. China Merchants International highlights HANSOH PHARMA (03692), INNOVENT BIO (01801), 3SBIO (01530), Hutchison MediPharma (01167), WUXI XDC (02268), and Pfizer Inc. (PFE.US) as key recommendations in the pharmaceutical industry.