Seven government departments have issued the "15th Five-Year Plan for Disease Prevention and Control." The plan prioritizes the prevention and control of major infectious diseases, adopting a "multi-disease co-prevention" approach. It outlines six key tasks: strengthening respiratory infectious disease control, vector-borne disease control, blood-borne and sexually transmitted disease control, zoonotic disease control, vaccine-preventable disease control, and other disease control. The plan also uses dedicated sections to propose major infectious disease prevention and control actions. CITIC Securities believes the pharmaceutical sector continues to highlight its high demand certainty. Coupled with sustained high growth in domestic biomedical financing data, CITIC Securities expects pharmaceutical innovation companies and global pharmaceutical industry chain companies to experience steady performance growth over the next 3-5 years.
Overnight Market Overview
Overnight, US stocks ended mixed. The Dow Jones Industrial Average rose 262.83 points, or 0.51%, closing at 52,210.08. The S&P 500 edged up 1.2 points, or 0.02%, to 7,413.18. The Nasdaq Composite fell 43.74 points, or 0.18%, to 24,932.08. Major tech stocks had a mixed session. Apple rose over 1%, hitting a new record high, with its market capitalization nearing $5 trillion, overtaking Nvidia to become the world's most valuable company. Google gained over 2%, and Microsoft rose nearly 2%. Tesla and SpaceX dropped over 1%, while Nvidia fell nearly 5%. AI hardware stocks broadly declined, with the Philadelphia Semiconductor Index falling over 2%. The optical communication and memory sectors led the losses, with SanDisk dropping over 11%, and Kioxia ADR and SK hynix falling over 7%. SK hynix fell below its US IPO price. Most popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index gaining 2.51%. The Hang Seng Index ADR rose, calculated to close at 25,320.21, up 113.03 points or 0.45% from the Hong Kong close. NYMEX WTI crude oil futures for the front-month contract fell $7.40 to settle at $81.91 per barrel, a drop of 8.29%. COMEX gold futures for the front-month contract rose $7.80, or 0.19%, to $4,078.60 per ounce.
Hot Topics to Watch
DFZQ (03958) announced it plans to acquire 100% equity of Shanghai Securities from Bailian Group, Guotai Haitong, and other counterparties. The transaction consideration is 25.12 billion yuan (RMB). This includes 23.55 billion yuan in share consideration and 1.57 billion yuan in cash. The issuance price is 10.29 yuan per share, with a total issuance of approximately 2.289 billion shares.
Wanguo International Mining Group (03939) clarified a local slip incident at its Jinling Gold Mine. At approximately 12:45 pm (Solomon Islands time) on July 27, 2026, a local slope failure occurred on the northwest edge of a non-operating bench at the open pit's north first pit. Before the incident, GRML had implemented safety control measures, including closing and cordoning off the affected area and implementing safety early warning controls. The incident caused no casualties, equipment, or property damage. Mining operations at the Jinling Gold Mine continue as normal, and all ongoing construction projects remain unaffected.
INNOCARE (09969) announced that its Phase III registrational trial for fadeucravacitinib (ICP-488) in treating moderate-to-severe plaque psoriasis successfully met its primary endpoint. The study results showed that fadeucravacitinib (ICP-488) achieved its primary endpoint with statistical significance and clinically meaningful improvement. It also successfully met multiple secondary endpoints, demonstrating consistent therapeutic effects across various efficacy evaluation indicators. Detailed efficacy and safety data from this study will be presented at future international academic conferences and submitted for publication in peer-reviewed medical journals.
CSPC PHARMA (01093) expects a significant increase in profit attributable to equity holders for the interim period, ranging from approximately 5.9 billion yuan to 6.2 billion yuan. This growth is primarily due to: 1) A substantial increase in licensing fee income compared to the same period last year, with an upfront payment of USD 840 million (approximately RMB 5.74 billion) expected to be recognized as licensing fee income in the second quarter of 2026; and 2) Steady sales revenue growth from the finished drugs business, which increased by approximately 10% year-on-year, excluding the impact of licensing fee income.
LAOPU GOLD (06181) issued a profit alert, expecting an adjusted net profit of approximately 4.31 billion yuan to 4.36 billion yuan for the interim period, representing a year-on-year increase of about 83% to 85%. The increase in net profit is mainly due to the continuous expansion of the group's brand influence, product optimization and iteration, and increased spending by high-value customers, gold product consumption, and repurchase rates.
Basicsemi (09971) announced that on July 27, 2026, it entered into a general contracting agreement with China Construction Second Engineering Bureau Ltd. for its silicon carbide module packaging production line base project. The total contract price is RMB 193.3 million.
Antengene Corporation (06996) issued a profit alert, expecting a profit of approximately RMB 195 million to RMB 238 million for the first half of 2026, compared to a loss of approximately RMB 76.4 million in the corresponding period last year. Revenue for the period is expected to be between RMB 490 million and RMB 536 million.
Stock Focus: Youran Dairy (09858)
The Ministry of Agriculture and Rural Affairs recently reported the national average raw milk price at 3.05 yuan/kg on July 16, marking the first time since June 12, 2025, that the price has exceeded the bottom range of 3.02-3.04 yuan/kg. Additionally, the Shandong Dairy Association monitored a recent recovery in bulk milk prices to 2.8-3.1 yuan/kg, surpassing contract milk prices. Furthermore, China Modern Dairy recently completed its tender offer for China Shengmu Organic Milk and disclosed a positive profit forecast for the first half of the year. Huachuang Securities believes this highlights the industry trend of capacity concentrating among leading players and confirms the profit elasticity of leaders during the industry recovery phase. Guosen Securities stated that a major cyclical reversal in the dairy farming industry is imminent, expecting a strong rebound in domestic meat and milk prosperity, which should lead to high-elasticity profit recovery for dairy farming companies. Huachuang Securities points out that as the supply-demand structure continues to improve, the industry is accelerating its departure from the bottom range and entering an upward profit channel. Considering that the benefits of milk price recovery first flow to the upstream breeding link, the pace and elasticity of profit improvement for pasture companies are more pronounced, continuously strengthening the allocation value of the sector.
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