300858, "20cm" limit-up! Pharmaceutical stocks, a big breakout!

This morning, the external market experienced another sharp fluctuation, with the South Korean Composite Index dropping over 4% at one point, while the Nikkei 225 Index fell by more than 2% at its lowest. The A-shares, however, demonstrated strong resilience, with the Shanghai Composite Index and Shenzhen Component Index opening lower but quickly rebounding, and the number of rising stocks far exceeding those that fell, showing a further trend of shrinking trading volume.

On the market, sectors such as agriculture, forestry, animal husbandry, fisheries, pharmaceuticals, biotechnology, new energy, and ground weapons saw significant gains, while segments like environmental monitoring, aerospace equipment, insurance, and communication devices faced notable declines.

A Major Medical Conference is About to be Held

Pharmaceutical and biotechnology stocks collectively surged this morning, with the innovative drug sector being the most active; the sector index quickly turned positive after opening lower, rising by over 3% at its peak. Kintor Pharmaceutical hit the 20% daily limit; Shuanglu Pharmaceutical reached a vertical limit up within the day, achieving its second consecutive limit up in three days; Lianhuan Pharmaceutical went from a nearly 2% drop to a limit up in about nine minutes; and over 10 stocks, including Recbio and Zhaoyan New Drug, reached their daily limit or rose over 10%.

Chemical pharmaceuticals, weight-loss drugs, CXO concepts, and immunotherapy sectors also saw strong upward momentum, with Mindray Medical hitting a limit up, achieving five limit ups in six days, and rising over 75% since March. Kanghong Pharmaceutical and Jingyao Pharmaceutical also saw multiple limit ups.

Wind’s real-time monitoring data shows that as of the midday close, the Shenwan Pharmaceutical and Biotechnology industry saw a net inflow of over 8 billion yuan from major funds, with stocks like Hengrui Medicine, Lianhuan Pharmaceutical, Mindray Medical, and Shuyou Shen receiving over 100 million yuan in net inflows.

The global pinnacle conference on cancer research—the 2026 American Association for Cancer Research (AACR) Annual Meeting—will be held from April 17 to 22, 2026. At that time, 104 Chinese pharmaceutical companies will showcase over 250 innovative drugs, with more than 30 significant breakthroughs selected for the conference’s core oral presentation segment, highlighting China’s outstanding strength in the innovative drug field.

Additionally, the recently released performance results of innovative drug上市 companies show a positive trend. Leading pharmaceutical company Hengrui Medicine recently released its 2025 performance report, achieving an operating revenue of 31.629 billion yuan, a year-on-year increase of 13.02%, and a net profit of 7.711 billion yuan, a year-on-year increase of 21.69%. Among them, the sales revenue of innovative drugs was 16.342 billion yuan, a year-on-year increase of 26.09%, accounting for 58.34% of total drug sales revenue.

It is noteworthy that Hengrui Medicine has set a goal in its annual report’s business plan to achieve over 30% growth in innovative drug sales revenue by 2026.

Kaiyuan Securities pointed out that in recent years, there have been frequent major BD transactions in the weight loss and blood sugar reduction sectors, and it is expected that a golden window period for BD will come, providing historic overseas opportunities for relevant domestic enterprises.

Agriculture and Animal Husbandry Concept Stocks Surge Across the Board

The agriculture, forestry, animal husbandry, and fisheries concept stocks surged across the board this morning, with the agricultural chemical direction leading the gains. The sector index opened lower but rose nearly 4% at one point, with Suli Co., Ltd. quickly hitting the daily limit after a strong opening, and Jintian International vertically rebounding from a nearly 3% drop to a limit up in about 2 minutes; Chitianhua and Andon Health A also saw strong limit ups.

Sub-sectors such as seasonings, pest control, fertilizer concepts, and food processing also saw significant increases in trading volume, with Haitian Flavoring and Food, Yara International, Junyao Health, and Dunhuang Seed Industry leading the gains.

In terms of news, Jean-Marie Paugam, Deputy Director-General of the World Trade Organization, recently warned that the ongoing conflicts in the Middle East are disrupting fertilizer supplies, posing a dual threat of high food prices and food shortages to global food security.

Paugam stated that fertilizers are currently one of the most concerning issues, saying, “If there is no more fertilizer (circulating), it will not only affect (food) production but also (food) prices.” He warned that these effects will intensify in the following year, leading to “reduced harvests and rising prices.”

Additionally, the preparation for spring plowing in China is gradually advancing from south to north. Recently, seven departments, including the Ministry of Agriculture and Rural Affairs and the Supreme People’s Court, jointly deployed work to combat counterfeit agricultural materials for the 2026 spring plowing preparations, which will rapidly carry out special inspections to strengthen the supply of agricultural materials for spring plowing and ensure the quality of agricultural products.

The pace of hog production capacity reduction is also accelerating. Since March, relevant departments have held several special meetings, clearly requiring further reduction of the breeding sow stock to 36.5 million heads, a decrease of 11%, and emphasizing strict implementation of capacity control measures.

Guotai Junan stated that it is paying attention to the agricultural price increase logic at the bottom and continues to be optimistic about the benefits of the grain price boom in 2026 for planting companies, high-quality seed companies, and companies with advantages in agricultural product processing.

Proofread by: Zhu Tianting