Zhitong Hong Kong Stock Exchange Unravels | Blood Drawing Effects Coupled with Small Essay Technology Weakens Funding Focuses on Multiple Outbreaks of Innovative Drugs

[Anatomy Dashboard]

The A-share market is now too dependent on technology; as long as this line weakens, it won't be good. However, the Hang Seng Index was not affected by technology. Instead, it rose today, closing up 0.60%.

The Middle East side is not at peace. According to news from Israel on the 10th, Israel has indicated to the US that Israel is willing to participate in further US military operations against Iran and is currently awaiting a decision from US President Trump. According to the news, Israel believes that a new round of military conflict between the US and Iran may continue for several days. Currently, there is little impact on the market. The strong trend of gold stocks today should be related to the Federal Reserve's bias. In addition, it is also a gamble on the next US inflation data. For example, Lingbao Gold (03330) and Wanguo Gold International (03939) both increased by more than 5%.

Sure enough, as I said yesterday: everything rotates in cycles. Technology stocks were in a good mood yesterday. Also, Zhaoyi Innovation (03986) also announced impressive performance forecasts. It is estimated that net profit from mother to mother will increase by about 1099% year on year in the first half of the year, but the trend has instead gone unnoticed. Today, it has plummeted by more than 21%, directly leading technology stocks into a chasm. At the same time, there are also negative essays, such as Shenghong Technology (02476): Delivery of the first batch of Rubin boards failed, and Xinxing is currently accepting the share. The company later refuted the rumor, but today it still plummeted by nearly 13%. At the source, the estimated decline in technology is related to capital. According to people familiar with the matter, SK Hynix's $26.5 billion US offering received fewer shares than initially anticipated. People familiar with the matter said that the subscription multiplier for this deal was about seven times, and more than 500 institutional investors participated in the subscription. Ten of these investors subscribed for 50% of the shares, while the top 25 investors subscribed for two-thirds of the shares. They also stated that SK Hynix's management is deeply involved in the allocation of shares. Looking at the cost performance ratio, it's more profitable to subscribe to this one. This led to the withdrawal of funds.

As soon as technology fell, capital returned to medicine. The catalyst was the benefit mentioned yesterday in the section: “Notice Concerning Issuance of the National Catalogue of Essential Drugs (2026 Edition)”, which announced that the new version of the catalogue will be officially implemented on September 1, 2026. The key positive direction is innovative drugs. Several of the varieties mentioned, such as Cinda Biotech (01801), Junshi Biotech (01877), and China Biopharmaceutical (01177), have all risen by more than 4% today, because the varieties mentioned above have all been selected for the new catalogue. However, the CXO category is highly flexible, because all levels of fundamentals benefit it at all levels. For example, Zhaoyan Pharmaceutical (06127) and Kanglong Chemical (03759) both rose by more than 11%, while Gloria Ying (06821) rose more than 5%.

Biosetu-B (02315), a low-level water buying company for biological experiments, is also favored. The core barrier is that its RenMice humanized mice are scarce globally. Only 3 companies in the world have complete whole-human antibody mouse platforms. Customers cover 9 of the world's top 10 pharmaceutical companies, account for 70% of overseas revenue, and order continuity is extremely strong. In conjunction with its newly launched RenSuper platform, it is used to accelerate antibody screening. The company recently reached a global partnership with WhiteHawkTherapeutics. Baiosetu will receive a down payment and is entitled to corresponding payments when the relevant products reach specific development, regulatory and commercialization milestones. In addition, Baiosetu is also entitled to a low single-digit share of the net sales of products. This model is a win-win situation. If it continues to be promoted, it has great potential in the future. Today, it will increase by more than 10%. There is also Insilicon Intelligence (03696) with an AI pharmaceutical theme: the Pharma.ai platform is sold to pharmaceutical companies for target and molecular screening, and BD cooperates with down payment+milestone. Rentosertib, the world's first AI-designed drug from scratch, has entered phase III (fibrosis) with 13 clinical pipelines. Follow-up orders and clinical catalysis. Today, the increase was over 7%.

There are also varieties that are easy to implement next, such as Yingen Bio-B (09606): DB-1311 (B7H3 ADC), as one of the company's core late-stage pipelines with the greatest global potential, has shown differences in differentiated efficacy. First-line phase III global clinical trials have already been initiated, and commercial development in cooperation with BionTech is ready. The agency expects BionTech to submit the US endometrial cancer indication BLA to the FDA in 2026, which is expected to take the lead in contributing to revenue elasticity. Today's increase of more than 10%; another Columbotai (06990): its subsidiary Lucan Satuzumab (SaC-TMT, the first domestic TROP2 ADC) and PD-L1 monoclonal antibody have entered medical insurance, the channels cover 2400+ hospitals nationwide, self-developed OptiDC full-chain ADC platforms, 2 ADCs have been commercialized (TROP2, HER2), the number of domestic pipelines and the first tier of clinical progress; with MSD's 9.5 billion US dollar epic ADC, MSD has deployed 17 overseas clinical trials. Validate the clinical value of products; ASCO The latest Phase III data exceeded expectations, rising more than 8% today.

Space is favorable today. At 12:15 on July 10, the Long March 10B carrier rocket was launched at the Hainan commercial space launch site. After the first and second stages of the rocket were separated for about 6 minutes, the first sub-stage returned vertically and successfully recovered on the offshore recycling platform. It has verified the offshore network recycling technology pioneered by China, and has embarked on a completely different rocket recycling technology route from the US. Reusable technology is of great significance in reducing launch costs. The main benefit is Junda Co., Ltd. (02865): Recently, the company has prepared 3 satellites for launch, the G60 100 kg commercial weather satellite “YL-01” satellite, the multi-band intelligent infrared meteorological remote sensing satellite “China Aviation Infrared 1” satellite, and the Zhijiang Laboratory computing power satellite “Three-Body Light Boat - Yunjian Muxi” satellite; the company is the operator and lead company of the Starhub Project (guided by the Shanghai Economic and Credit Commission), with a total of 1,000 AI satellites. Today, it surged more than 24%; another Goldwind Technology (02208) rose more than 8% due to its participation in Blue Rocket Aerospace, while other varieties, such as Asia Pacific Satellite (01045), surged and retreated.

In the past 2 years, Changhe (00001) has sold British power grids, railway leasing, 49% of British Telecom's shares, and London office buildings on a large scale, and has cashed out over HK$350 billion. With the latest resurgence in sales, Changhe (00001) recently stated that it is negotiating the sale of its European perfume and cosmetics company Marionnaud. The reason is Marionnaud's perennial EBITDA loss. The acquisition logic back then was to make up for Watsons's high-end beauty shortcoming, but 20 years of operation proved that high and low positioning could not be coordinated. The purchase cost in 2005 was 534 million euros, and the share price would be sold at a discount. Overall, this investment was a loss of money. However, today the stock price has risen by more than 7%. The reason is to get rid of the burden of losing money, go to battle lightly, and invest in a more profitable industry.

[Section Focus]

On July 10, the State Council agreed in principle to the “Fifteenth Five-Year Plan” for the Revitalization and Development of Traditional Chinese Medicine. Please carefully organize and implement it. The “Plan” adheres to equal emphasis on traditional Chinese and Western medicine, adheres to integrity and innovation, follows the rules and characteristics of traditional Chinese medicine, improves the mechanism for the inheritance, innovation and development of traditional Chinese medicine, accelerates the modernization of traditional Chinese medicine, promotes traditional Chinese medicine to the world, and provides strong support for decisive progress in building a healthy China during the “15th Five-Year Plan” period.

Traditional Chinese medicine has also been dormant for a long time. The main positive direction of this policy is: authentic herbal medicine base+formula granules/tablets, classic famous prescriptions+innovative traditional Chinese medicine, chain traditional Chinese medicine medical treatment, etc.

Individual stocks related to Hong Kong stocks: Chinese Traditional Chinese Medicine (00570), Baiyunshan (00874), Tongrentang Technology (01666), Shenwei Pharmaceutical (02877); Gushengtang (02273), a chain of traditional Chinese medicine.

[Individual Stock Mining]

Eston (02715): The acquisition of smart targets catalyzes the continuation of overseas business to achieve high growth

Yushu Technology's IPO was approved in a flash. Eston previously announced that it plans to acquire 100% of Aston Cool's shares in cash through its wholly-owned subsidiary, and that it plans to absorb and merge its wholly-owned subsidiary Nanjing Eston Automatic Control Technology. The company reported total revenue of 1,217 billion yuan for the first quarter of 2026, a year-on-year decrease of 2.22%, and net profit to mother of 97.8367 million yuan, an increase of 674.64% over the previous year.

Comment: This acquisition is expected to reinforce Eston's layout in the direction of humanoid robots and embodied intelligence. The company's industrial robot shipments ranked first in the domestic market in the first quarter, and profitability increased. Net profit in a single quarter exceeded the full year of 2025, and gross margin increased by 7.52% year-on-year. Overseas business has grown dramatically, with Europe as the core engine. Overseas revenue in 2025 accounted for 29.4%, +50% year-on-year; European revenue growth rate was 50% +. Overseas orders in Q3 2025 were +68.5% year-on-year; Europe and Southeast Asia continued to increase in early 2026. The overseas gross profit margin is 30% +, which is significantly higher than domestic, and is the main source of profit growth for the next 2-3 years. The company's share of industrial robots continues to rise, and production continues to increase. In 2025, 33,400 units were shipped, accounting for 10.6% of the market. For the first time, it surpassed the four major foreign companies (Fanuc, Yaskawa, etc.), ranked first in domestic production for 8 consecutive years, leading customer resources (Ningde Era, BYD, Longji, Geely, etc.), and entered the world's leading auto parts supplier list.

There are sufficient orders in hand. The latest order data (February to March 2026), on-hand orders are about 8.5 billion yuan, +67% year over year, robot orders are about +50% year over year, and the high boom continues. Contract liabilities (advance payments): 586 million yuan (+16.1%) at the end of 2025 and 557 million yuan at the end of 2026Q1. The order quality is stable. Order structure and delivery, downstream: automobiles (including new energy), 3C, photovoltaic/lithium batteries > 70%; large orders: BYD 12,000 robot contracts (delivery until 2026Q1); 80 million + overseas Salis single projects, with an estimated 150 million orders in 2026. Production schedule: Capacity utilization rate is 90% +; on-hand orders are scheduled to 2026Q2-Q3. Heavy-duty models have a longer schedule, full orders, and tight delivery.

The global layout took shape, A+H listed (Hong Kong stock listing in March 2026), the first A+H industrial robot in China. Merged and acquired German Cloos (welding) and British TRIO (motion control); Europe/Poland factories were launched, and services covered 75 countries. The company's entire industry chain is self-developed, 95% of the core components are autonomous and controllable, self-developed iER.OS intelligent ecosystem, Juliet robot language, rapid deployment of collaborative robots (Cool Zhuo), covering 107+ scenarios, and rapid electronics/lithium-battery/medical expansion. The core components of the 1200kg heavy-duty robot are 100% domesticated, and the first set certified at the national level. The company's share of collaborative robots has increased, overseas business is growing, orders are full, and gross margin is significantly higher than domestic (difference of about 10 pct), which is the core of future profit flexibility. The Ministry of Industry and Information Technology supports domestic replacement of core components of industrial robots, and multiple benefits continue to ferment.