We think there is room for the stock price of Mega Ophthalmology to rise 10% in the next month because the company has a rich pipeline of innovative ophthalmology drugs and is advancing clinical trials as expected.

Influenced by market sentiment, the Hang Seng Index fell 4.2% on July 27, 2021. Because we believe that the impact of the above incident on the fundamentals of Zhaoke Ophthalmology is limited, there have been no major changes in the company's fundamentals. The market overdecline is an opportunity. It is estimated that the possibility that the stock price will rise in the next month is 70-80%.

We reaffirm the company's “buy” rating and are optimistic about the ophthalmology circuit for a long time. The company's high clinical progress includes cyclosporin A eye gel, which is potentially the best of its kind in the market, and atropine with low NVK-002 concentrations is expected to benefit from the national myopia prevention and control strategy.