BOCOMI has released a research report noting that the Hong Kong-listed prescription drug sector has performed impressively YTD. Taking into account the overall pharma industry and the performance of key stocks within the sector, the market's main focus included major BD overseas deals and changes in fundamental expectations.

Although the sector's headline valuations appeared high, the core business valuations (excluding BD collaborations) remained attractive, BOCOMI wrote. With innovation driving increasingly certain long-term growth, there would still be room for further valuation upgrades in the future.

Related NewsBofAS Lifts SINO BIOPHARM's TP to HKD5.9, Reiterating Buy Rating
BOCOMI was optimistic about companies with better-than-expected short-term earnings growth and long-term innovation value, and selected stocks with greater potential for valuation upside. It strongly recommended SIMCERE PHARMA (02096.HK)  -0.120 (-1.062%)    Short selling $2.79M; Ratio 3.532%   and suggested focusing on companies like HANSOH PHARMA (03692.HK)  +0.050 (+0.171%)    Short selling $21.95M; Ratio 23.165%   and SINO BIOPHARM (01177.HK)  +0.010 (+0.191%)    Short selling $64.24M; Ratio 19.368%   , which had overseas expansion or performance catalysts.

The broker lifted its target prices for HANSOH PHARMA and SINO BIOPHARM to HKD33 and HKD5.9, respectively, but downgraded CSPC PHARMA (01093.HK)  -0.010 (-0.125%)    Short selling $117.80M; Ratio 18.301%   's rating to Neutral.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-25 12:25.)