Today's Headlines: ESMO Academic Conference to Be Held Next Week, Innovative Drugs Set for Global Data Realization
The 2026 European Society for Medical Oncology (ESMO) Annual Meeting will take place from October 23 to 27. The number of Chinese studies selected for this conference has hit a record high, with a total of 28 studies selected as LBA breakthrough abstracts, of which 4 will take the stage for oral presentations at the plenary session. Domestic innovative drugs are no longer limited to extended data output for PD-1; pipelines with globally first-in-class attributes such as ADCs, bispecific antibodies, and IO2.0 are making a concentrated appearance. Combined with the third-quarter earnings disclosure window and continuously record-breaking overseas BD transactions, the three major themes within the pharmaceutical sector are experiencing a dual resonance of fundamentals and event catalysts. The industry is officially transitioning from being driven by BD events to a new phase of concentrated realization of global Phase III clinical data and overseas registration and commercialization. The global voice of domestic innovative drugs is undergoing a fundamental change. Clinical challenges of high global concern, such as EGFR-TKI-resistant non-small cell lung cancer, HER2-low breast cancer, and CLDN18.2 gastric cancer, will all see key registrational data from multiple domestic drugs. RemeGen (09995) has a total of 21 studies featured at this ESMO, with multiple expanded indication data for disitamab vedotin disclosed, including a study on extramammary Paget's disease of the breast selected for an LBA oral presentation. In addition, BeiGene (06160), Junshi Biosciences (01877), and Chipscreen Biosciences also have major studies appearing on the international stage, with pipeline value continuously being scrutinized by overseas clinical experts.
The upswing in innovative drug R&D sentiment is directly transmitting order dividends to the upstream CXO industry chain. WuXi AppTec (02359) continues to maintain high-speed growth in backlog orders for continuing operations, with gross margin levels in new business segments recovering, benefiting from the global wave of new molecule R&D; Asymchem (06821) has achieved substantial growth in backlog orders and newly signed orders, with overseas CDMO orders continuously releasing performance elasticity; Joinn Laboratories (06127) has seen an explosion in newly signed orders for preclinical CRO business, fully capturing domestic innovative drug early-stage R&D demand; Tigermed (03347) has seen its clinical CRO business's non-GAAP profit growth outpace revenue growth, with average order prices returning to an upward trajectory. The industry is undergoing a process of transitioning from order recovery to performance realization. Early low-priced old orders are gradually being delivered, newly signed order prices are rising, and the gross margin improvement trend for leading companies is clear. The third-quarter earnings reports will be a key window to verify the inflection point of the CXO industry, and leading companies with the capability to undertake complex molecules will continue to enjoy the dividends of the global innovative R&D recovery. JPMorgan's latest research report believes that Chinese biotech ESMO catalysts can validate domestic innovation, with top picks being Kelun-Biotech (06990) and Innovent Biologics (01801).
Market Outlook: Trading Reminder: Due to the Chung Yeung Festival holiday, Hong Kong stocks and the Stock Connect will be closed for one day on October 19 (Monday). Overnight US stocks as of close: The Dow Jones Industrial Average rose 556.21 points from the previous trading day to close at 52,177.69, up 1.08%; the S&P 500 rose 25.12 points to close at 7,744.06, up 0.33%; the Nasdaq Composite rose 20.16 points to close at 26,713.03, up 0.08%. Semiconductor and storage sectors showed mixed performance, with the Philadelphia Semiconductor Index falling more than 4% at one point during the session before ultimately closing down 0.88%, its seventh consecutive day of declines. Among individual stocks, Qualcomm rose more than 3%, ARM rose nearly 3%; computer hardware and oil and gas sectors declined, with Quantum falling more than 9% and Dell Technologies falling nearly 7%; precious metals and cryptocurrency concept stocks led gains, with Circle rising more than 9% and Eldorado Gold rising more than 5%; Chinese concept stocks continued their rebound, with the Nasdaq Golden Dragon China Index rising 1.96% to 5,770.91 points, as internet platforms, travel, and new energy vehicle sectors strengthened collectively. The Hang Seng Index ADR rose, calculated proportionally, closing at 24,265.21 points, up 202.49 points or 0.84% from the Hong Kong close. On the New York Mercantile Exchange, the front-month WTI crude oil futures contract rose $2.46 to close at $97.55 per barrel, up 2.59%. COMEX gold futures front-month contract rose $84.60, up 2.06%, to $4,192.5 per ounce.
Hotspot Preview: US September PPI Surges 6.3% Year-over-Year, Largest Increase Since 2022
The US Labor Department announced on Thursday that the September producer price index came in significantly higher than economist expectations, highlighting persistent inflationary pressure from energy amid the US-Iran conflict. According to US Bureau of Labor Statistics data, this gauge of underlying inflation pressure rose 1.3% month-over-month in September and surged 6.3% year-over-year, marking the largest 12-month increase since late 2022.
Alibaba, TSMC Among Companies Included as US Options Trading Hours Expand Next Week
As the US stock market effectively enters "24-hour trading," options paired with stocks will also see expanded trading hours. According to a notice from the Chicago Board Options Exchange (Cboe), its Cboe Options Exchange (C1) will begin next Monday adding morning and post-close trading sessions for designated stock and ETF options. Options for popular companies including Alibaba, TSMC, Nvidia, Apple, and Tesla are all covered by the notice.
Cook: Apple Intelligence Approved in China, Beta Version to Launch Late October
On October 15, Apple Executive Chairman Cook revealed in an exclusive interview with The Paper in Shanghai that Apple Intelligence has been approved in China. A beta version will be available later in October, with initial features including real-time translation, writing tools, and image cleanup; Siri AI will not be included. On October 14, the latest public notice from the Ministry of Industry and Information Technology's telecommunications equipment network access licensing showed that Apple's first foldable phone, iPhone Duo (China model A3721), completed its network access license renewal on September 29, with a filing number for the device's large model added to the license document.
China Resources Power (00836) Subsidiary Power Plants' Cumulative Electricity Sales for First 9 Months Increased 9.7% Year-over-Year; Subsidiary Solar Power Stations' Cumulative Electricity Sales Increased 35.1% Year-over-Year
China Resources Power (00836) announced that its subsidiary power plants' electricity sales for September 2026 amounted to 19,723,615 MWh, a year-over-year increase of 9.0%, of which subsidiary wind farms' electricity sales reached 3,887,712 MWh, up 12.4% year-over-year; subsidiary solar power stations' electricity sales reached 1,675,670 MWh, up 31.2% year-over-year.
Marketingforce (02556) AI Application Business Revenue for First Three Quarters Increased Approximately 114% Year-over-Year
Marketingforce (02556) announced that for the first three quarters of 2026, the group's AI application business revenue increased approximately 114% compared to the same period in 2025; precision marketing service revenue increased approximately 32% compared to the same period in 2025. The group continues to deepen its "full-stack Token factory" strategy, further improving its AI-native product matrix and commercialization implementation.
Shanghai Fudan Microelectronics (01385) Issues Positive Profit Alert, Expects Net Profit Attributable to Parent for First Three Quarters of Approximately RMB 950 Million to 1.15 Billion, Up Approximately 187.63%-248.18% Year-over-Year
The announcement stated that the main reasons for the expected increase in revenue and net profit are: during the reporting period, the company adhered to technological innovation and product iteration, continuously expanded product application boundaries, drove revenue growth, and promoted product structure optimization; combined with the recovery of industry prosperity and growth in downstream customer demand, the company's revenue and comprehensive gross margin across all product lines achieved growth. The company strengthened refined inventory management and dynamically optimized stocking arrangements. During the reporting period, inventory write-down losses decreased significantly compared to the same period last year. The company recognized increased fair value change gains through strategic placement of shares in Shenghe Jingwei Semiconductor Co., Ltd., increasing non-recurring gains and losses for the reporting period.
Zhaojin Mining (01818) Announces Third Quarter Results: Operating Revenue of RMB 13.51 Billion, Up 8.69% Year-over-Year
Zhaojin Mining (01818) announced its 2026 third quarter results, with the group achieving operating revenue of RMB 13.51 billion (same unit below) during the period, up 8.69% year-over-year; net profit attributable to owners of the parent company of RMB 1.97 billion; basic earnings per share of RMB 0.51.
Pacific Basin (02343): Spot Market Average Daily Charter Rates for Handysize and Supramax Dry Bulk Vessels Remained Strong in Third Quarter
Pacific Basin (02343) announced that supported by rising freight rates and steady tonnage-mile demand, the dry bulk freight market further strengthened in the third quarter of 2026. In the third quarter of 2026, the company's core business achieved average daily earnings on a time charter equivalent basis for Handysize and Supramax dry bulk vessels of $16,020 (net) and $17,990 (net) respectively, representing year-over-year growth of 37% and 34% respectively.
Ganfeng Lithium (01772) Achieves Net Profit Attributable to Parent of Approximately RMB 5.012 Billion in First Three Quarters, Up 19,540.50% Year-over-Year
Ganfeng Lithium (01772) announced that for the first three quarters of 2026, it achieved revenue of approximately RMB 36.159 billion, up 147.24% year-over-year; net profit attributable to shareholders of the listed company of approximately RMB 5.012 billion, up 19,540.50% year-over-year; net profit attributable to shareholders of the listed company excluding non-recurring gains and losses of approximately RMB 4.636 billion, up 592.14% year-over-year; basic earnings per share of RMB 2.4. The announcement stated that revenue growth was mainly due to the recovery in lithium series product prices and increased sales volume of lithium battery series products during the reporting period.
Longsys (09976) Issues Positive Profit Alert, Expects Net Profit Attributable to Parent for First Three Quarters of RMB 14 Billion to 14.9 Billion, Up 1,864.55%-1,990.84% Year-over-Year
In the third quarter of 2026, the company's operational indicators further improved in healthiness, particularly achieving a major breakthrough in turning positive in operating cash flow for the third quarter amid a high storage wafer price environment, and achieving an asset-liability ratio below 50% at the end of the reporting period.
Hans CNC (03200) Net Profit Attributable to Parent for First Three Quarters of RMB 1.544 Billion, Up 214.03% Year-over-Year
Mainly benefited from significant demand growth for high-end AI PCBs including next-generation rack server computing power and switching unit high-layer HDI boards, N+N structure high-layer boards, and 800G and 1.6T high-speed optical module mSAP-type substrate boards. Driven by the dual factors of demand growth and technological advancement, downstream PCB companies' investment continued to surge, and the company seized the market opportunity of downstream customer expansion and upgrading, with orders across all product lines growing substantially.
Stock Spotlight: Alibaba Health (00241): Ant Afu Named to TIME's 2026 Best Inventions
On the evening of October 15, TIME magazine unveiled its "2026 Best Inventions" list, with Ant Group's health AI "Ant Afu" selected, making it the only Chinese AI application to make the list this year. The list is regarded as a global technology innovation bellwether; last year's selected Chinese AI product was DeepSeek. TIME believes that Ant Afu "makes professional medical and health services more accessible." As of September this year, the Ant Afu app has reached 150 million users, with nearly 20 million daily health consultations.
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