Recently, international investment bank Morgan Stanley released its latest research report, raising the target price of Fosun Pharma (02196) H shares from HK$17 to HK$18, and maintaining a 'buy' rating on Fosun Pharma. This is the second time Morgan Stanley has raised Fosun Pharma's H-share target price in the past six months, fully reflecting confidence in Fosun Pharma's future development.

Currently, after the last round of gains, the Chinese capital markets are showing a retracement trend. However, with the recent boost from intensive policies, market liquidity has significantly improved. Analysts believe that the future market trend will gradually transition from being driven by sentiment to being driven by fundamental verification, with the market characteristics shifting from volatile fluctuations to stable gradual increases. The pharmaceutical sector has become one of the most attack-oriented assets influenced by the market trend.

In this market surge, the pharmaceutical sector is one of the most obvious sectors influenced by the overall market upward trend, with Fosun Pharma (600196.SH; 02196.HK) as a representative being one of the first quality symbols to initiate within the sector. Fosun Pharma, as a scarce 'safe and investable quality asset' in the pharmaceutical sector, the first quality symbol to initiate within the sector, fully demonstrates its previously undervalued value by the market, also reflecting the logic of block orders' allocation in this round of the market.

Behind the rise is the continuous innovation and steady growth fundamentals of Fosun Pharma. In the first half of 2024, Fosun Pharma achieved revenue of 20.463 billion yuan. As the core segment of the company, the pharmaceutical business pipeline covers multiple core treatment areas including tumors, autoimmune diseases, central nervous system, chronic diseases, with innovative drug revenue reaching 3.7 billion yuan, showing steady growth. As a pioneer of globalizing Chinese pharmaceutical companies, Fosun Pharma's global operational capabilities continue to strengthen, with overseas revenue in the first half of 2024 reaching 5.51 billion yuan, a year-on-year increase of 15.13%, accounting for 26.93% of total overseas revenue.

Fosun Pharma's self-developed oncology product Hanquyou (Bevacizumab Injection) has been approved for marketing in 48 countries and regions including China, the European Union, and the USA, benefiting over 0.2 million patients globally, covering areas such as breast cancer and gastric cancer. Another heavyweight self-developed innovative drug Hanszhuang (Sulirumdab Injection) completed its first overseas shipment in January 2024, becoming the first domestically-produced PD-1 monoclonal antibody approved for marketing in South Asian countries. Its Marketing Authorization Application (MAA) in the EU was accepted by the European Medicines Agency (EMA) in March 2023, and bridge trials initiated in the USA are progressing orderly. At the same time, Fosun Pharma has established an innovative drug team in the USA to prepare for the commercialization of Sulirumdab Injection.

In addition, Fosun Pharma has actively carried out share buybacks in the past six months, demonstrating management's confidence in the company's long-term development. Recently, Fosun Pharma announced the completion of the implementation of its A-share buyback plan, with a total investment of 0.127 billion yuan for the buyback. Its H-share buyback plan is still in effect, with data showing that as of the market close on September 25th, Fosun Pharma has repurchased a total of 5.47 million H-shares, amounting to a total of HK$66.89 million.

Industry insiders indicate that in 2024, with continuous releases and implementation of policies supporting the biopharmaceutical industry and the gradual easing of industry competition and financing pressures, the domestic biopharmaceutical industry has achieved stable recovery in the industrial end, with industry fundamentals showing a mild improvement, but this trend has not been fully reflected in the secondary market.

With the continuous landing of innovative products and the ongoing strengthening of global operating capabilities, there is great anticipation from the outside world for the future development of Fosun Pharma. It is expected to continue to lead the trend in the pharmaceutical industry, bringing more innovative treatment solutions to patients, while also offering investors sustained growth investment value.