The Chinese biotech industry entered a phase of accelerated growth, with companies expanding their innovative commercial product portfolios, nailing major out-licensing deals, and exceeding expected profitability, UOB Kay Hian's research report said.

Ongoing policy support and globalization efforts will further foster the industry's expansion, the broker suggested, believing that the industry will continue to execute well and is expected to deliver sustainable growth in the coming years, upgrading the industry's rating to Overweight.

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UOB Kay Hian emphasized that INNOVENT BIO (01801.HK)  -2.200 (-2.804%)    Short selling $348.73M; Ratio 14.074%   , HANSOH PHARMA (03692.HK)  0.000 (0.000%)    Short selling $180.96M; Ratio 35.646%   and SINO BIOPHARM (01177.HK)  +0.090 (+1.856%)    Short selling $145.25M; Ratio 19.652%   are its top picks.

The global biopharmaceutical market sized USD1.089 trillion in 2023, approximately 10 times the domestic market. In light of the humungous opportunities in the global market, Chinese companies are ambitiously pursuing international expansion through differentiated strategies.

BEIGENE (06160.HK)  -0.800 (-0.542%)    Short selling $74.59M; Ratio 10.813%   , having established a fully integrated global platform, launched two innovative therapies overseas. Meanwhile, HUTCHMED (00013.HK)  -0.400 (-1.684%)    Short selling $19.18M; Ratio 8.183%   , HANSOH PHARMA, and ABBISKO-B (02256.HK)  +0.080 (+0.800%)   are forming out-licensing partnerships with multinational companies, achieving significant milestones.

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Furthermore, the rise of the "NewCo model" enables companies like HENGRUI PHARMA (01276.HK)  +0.100 (+0.176%)   to combine local R&D efforts with global resources and networks, while new insurance policies may speed up drug innovation.

The following are the ratings and target prices of some Chinese biopharmaceutical companies by UOB Kay Hian:

Shares│Ratings│TPs
INNOVENT BIO (01801.HK)  -2.200 (-2.804%)    Short selling $348.73M; Ratio 14.074%   |Buy|HK$110
HANSOH PHARMA (03692.HK)  0.000 (0.000%)    Short selling $180.96M; Ratio 35.646%   |Buy|HK$40
SINO BIOPHARM (01177.HK)  +0.090 (+1.856%)    Short selling $145.25M; Ratio 19.652%   |Buy|HK$7.7
BEIGENE (06160.HK)  -0.800 (-0.542%)    Short selling $74.59M; Ratio 10.813%   |Buy|HK$220
HUTCHMED (00013.HK)  -0.400 (-1.684%)    Short selling $19.18M; Ratio 8.183%   |Buy|HK$36
CSPC PHARMA (01093.HK)  -0.050 (-0.657%)    Short selling $260.30M; Ratio 10.582%   |Buy|HK$10.8
ABBISKO-B (02256.HK)  +0.080 (+0.800%)   |Buy| Not Rated
CKLIFE SCIENCES (00775.HK)  0.000 (0.000%)   |Buy|Not Rated
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-19 16:25.)

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