瑞银-中国医药行业2025年业绩回顾：2025年表现分化展望2026年预期收入增长-China Pharma Sector 2025 results review-20260409

a§

GlobalResearch

9April2026

ChinaPharmaSector

2025resultsreview

Mixed2025performanceandouroutlookfor2026Erevenuegrowth

Oftheeightpharmaceuticalcompaniesthathavereported2025resultstodate,onedeliveredaclearbeat(Hansoh),fourwerebroadlyinline,andthreemissedourexpectations(3SBio,CSPCandHengrui).In2026E,weexpectSimcereandCSPCtodeliverthestrongestrevenuegrowthamongpeers.WeestimateSimcere’srevenuetogrow25%,drivenbysalesmomentuminitsinnovativeproductportfolio.CSPCisexpectedtopost29%revenuegrowth,primarilyreflectingthebookingofaUS$1.2bnupfrontpaymentfromitsout-licensingagreementwithAstraZeneca.Incontrast,weexpect3SBioandUnitedLabtorecordnominalrevenuedeclinesin2026E,duetothehighBDpaymentrecognitionbasein2025.

Innovativedruggrowthandlicensingrevenuetobekeydriversin2026E

Innovativedrugsalesgrowthandout-licensingrevenueshouldremaintheprimaryearningsdriversin2026E.Simcereguidedfor30%growthinbothrevenueandadjustednetprofittoRmb10.0bnandRmb1.6bn,respectively.Hansohguidedfordouble-digitgrowthinbothproductsalesandcollaborationrevenuein2026,whileSinoBiopharmexpectsdouble-digitgrowthinrevenueandnetprofit.Hengruiguidedfora30%+YoYincreaseininnovativedrugsales.Onthegenericsfront,VBPpressureremainsaconstraint.CSPCtargetsfinisheddrugrevenuegrowthin2026,KelunPharmaexpectsgenericsnetprofittoremainstable,whileHengruiplanstostrategicallyscalebackitsgenericsbusiness.

Summaryofnear-termcatalysts

Amongcoveredcompanies,weflagkeydatareadoutcatalysts:1)3SBio'sSSGJ-707Ph2ChinatrialdataforNSCLC(mono)andendometrialcanceratthe2026ASCO;2)SinoBiopharm'sLM-299(PD-1/VEGF)first-in-humanPhase1dataatthe2025AACRandLM-302(CLDN18.2ADC)Phase2datain1LGCatthe2026ASCO;3)CSPC'sSYS6010(EGFRADC)Phase3datafor2LEGFRmutNSCLC;and4)Hansoh'sPhase3dataforHS20093(B7H3ADC),HS20089(B7H4ADC)andHS10374(TYK2).

Valuation

Thesectortradesat21.4x2026EPEand1.6xPEG.Wemaintain3SBioasoursectortoppick,supportedbycatalyststhatincludeimminentdataread-outsandoverseasclinicaltrialinitiationstriggeringmilestones.Weslightlyraise3SBio'sPTfromHK$37.70toHK$38.00,asweincorporatehighermilestonepaymentsin2026E(Rmb1.05bnvs.Rmb300mpreviously).

Figure1:Valuationcomparisonofourcoveredcompanies

Equities

Asia

Healthcare

AnitaWei

Analyst

anita.wei@

+852-29717459

ChenChen,PhD

Analyst S1460520100001

chen-zb.chen@

+86-10-58328201

LizHan,CFA

Analyst

liz.han@

+852-29716106

DavidGuo,PhD

Analyst S1460524040001

david-za.guo@

+86-10-58328010

TickerCompanyUBSrating

Price

target

ClosingpriceMktcap

(LC)(US$m)

PE

2025E2026E2027E

PEG

2025E2026E2027E

EPS(LC)

26-29ECAGR

1276.HKHengruiBuy91.0066.6556,472

49.0x39.7x32.2x

2.9x2.4x1.9x

16.7%

600276.SHHengruiBuy72.0057.4555,833

48.5x39.2x31.9x

2.9x2.3x1.9x

16.7%

3692.HKHansohBuy48.8038.2229,180

35.8x33.4x29.8x

2.1x1.9x1.7x

17.2%

1177.HKSinoBiopharmBuy11.006.0416,619

92.1x22.4x21.9x

6.7x1.6x1.6x

13.8%

1530.HK3SBioBuy38.0023.767,304

6.0x22.8x28.0x

NMNMNM

NM

1093.HKCSPCNeutral10.909.3115,702

23.9x9.6x22.4x

NMNMNM

NM

2096.HKSimcereBuy16.3013.734,289

23.3x18.9x14.7x

1.3x1.0x0.8x

18.0%

000963.SZHuadongBuy57.0036.258,118

16.4x14.4x12.9x

1.3x1.1x1.0x

12.9%

3933.HKUnitedLabBuy17.6010.462,887

8.2x13.7x11.1x

0.3x0.6x0.5x

24.5%

002422.SZKelunPharmaNeutral37.7034.637,065

32.4x20.4x18.2x

2.5x1.5x1.4x

13.1%

Median28.1x21.4x22.1x2.3x1.6x1.5x16.7%

Source:RefinitivEikon,UBSestimates,UBS-Sestimates.Notes:Dataasof8April2026.LC=localcurrency.

ThisreporthasbeenpreparedbyUBSSecuritiesAsiaLimited.ANALYSTCERTIFICATIONANDREQUIREDDISCLOSURES,iNcLuDiNGiNFoRmAtioNoNtHEQuANtitAtivEREsEARcHREviEwpuBLisHEDByUBS,BEGiNoNpAGE6.UBSdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.

ChinaPharmaSector9April2026a§2

ChinaPharmaSectorUBSResearch

2025resultsreview

Oftheeightpharmaceuticalcompaniesthathavereported2025resultstodate,onedeliveredaclearbeat,fourwerebroadlyinline,andthreemissedourexpectations.

In2026E,weexpectSimcereandCSPCtodeliverthestrongestrevenuegrowthamongpeers.WeprojectSimcere’srevenuetogrow25%,drivenbysalesmomentuminitsinnovativeproductportfolio.CSPCisexpectedtopost29%revenuegrowth,primarilyreflectingthebookingofaUS$1.2bnupfrontpaymentfromitsout-licensingagreementwithAstraZeneca.Incontrast,weexpect3SBioandUnitedLabtorecordnominalrevenuedeclinesin2026E,duetothehighBDpaymentrecognitionbasein2025.

Figure2:Pharmacompanies2025beat/miss;2026guidance

TickerCompanynameFY25Beat/Miss2026guidance

3692.HK

Hansoh

Beat

Double-digitgrowthforbothproductsalesandcollaborationrevenuein2026.

2096.HK

Simcere

In-line

Guided30%growthinbothrevenueandadjustedprofit,reachingRmb10.0bnandRmb1.6bn,respectively.

1177.HK

SinoBiopharm

In-line

Doubledigitgrowthforbothrevenueandnetprofitin2026.

3933.HK

UnitedLab

In-line

Managementhaspositivetoneaboutthefuture6-APApricetrend,andexpectsinsulinrevenuewillkeepincreasingin2026,drivenbygrowingexportsandmarketsharegainsinChina.CompanyexpectsmilestonerevenuetobeaboutUS$20min2026,consideringthePh1b-2aglobaltrialinobesity(initiatedinQ126)andthePh2globaltrialinT2DM(toinitiatein2H26).

002422.SZ

KelunPharma

In-line

Managementdidnotprovide2026guidanceonoverallrevenueorprofit.Theyexpect

recoveryofpenicillinpricesandstablegenericsbusinessprofitin2026.Forthesyntheticbiologybusiness,salestargetsaresetatRmb150-200min2026.Onthecostside,the

sellingexpenseratioandabsoluteR&Dexpensesareexpectedtoincreasemodestly,

drivenbyKelunBiotech,whiletheadministrativeexpenseratioisestimatedtodecline,permgmt.

1530.HK

3SBio

Miss

Managementexpressedconfidenceinmilestonerevenuecontributionsin2026,withmultipleR&Dmilestonesalreadyachievedtodate.

1276.HK

Hengrui

Miss

30%+YoYriseininnovativedrugsalesin2026,benefitingfrom10newdrugand5newindications'NRDLinclusion;thecompanyistostrategicallyscalebackinthegenerics.

1093.HK

CSPC

Miss

Forfinisheddrugsement,Companyaimsforpositiverevenuegrowthin2026,takingtheimpactfromVBPintoaccount.

Source:Companydata,UBSestimates,UBS-Sestimates

Modelchangesfor3SBio

WeslightlyraiseourPTfromHK$37.70toHK$38.00,basedonanunchangedWACCof10.4%and3%terminalgrowth.WefactorinournewmilestonepaymentestimatesfromPfizerofRmb1.05bnin2026fromRmb300mpreviously.WereiterateourBuyrating.

Figure3:SSGJ-707upfront&milestoneestimates(Rmbm)

3SBio'supfrontpaymentsreceived

9,940

3SBio'smilestonepaymentsreceived

-

1,050

300

300

300

300

300

300

300

300

3SBio'sroyalty

Rate

15%

--

--

--

--

1,500

3,000

5,250

9,000

9,825

3SBio'srevenuefromSSGJ-707partneshipwithPfizer

1,050

300

300

300

1,800

3,300

5,550

9,300

10,125

USChinaEU

Majorpatent-

-

-

100

250

375

525

683

819

942

1,036

1,121

Source:UBSestimates

ChinaPharmaSector9April2026婚§3

Figure4:2025resultsreview(Rmbm)

Hengrui

Revenue

2024

27,985

2025

1H25

3Q25

4Q25

2H25

2026E

31,629

15,761

7,427

8,441

15,868

36,680

YoY

23%

12%

16%

13%

8%

10%

18%

Netprofit

6,337

7,711

4,450

1,301

1,960

3,261

9,723

YoYHansoh

Revenue

47%

2024

12,261

22%

30%

10%

14%

12%

26%

2025

1H25

2H25

2026E

15,028

7,434

7,595

16,976

YoY

21%

23%

14%

32%

13%

Netprofit

4,372

5,555

3,135

2,421

5,973

YoYSinoBiopharm

Revenue

33%

2024

28,866

27%

15%

47%

8%

2025

1H25

2H25

2026E

31,834

17,575

14,260

35,402

YoY

10%

10%

11%

10%

11%

Netprofit

3,500

2,343

3,389

(1,045)

4,246

YoYCSPC

Revenue

50%

2024

29,009

-33%

12%

-317%

81%

2025

1H25

3Q25

4Q25

2H25

2026E

26,006

13,273

6,618

6,115

12,733

33,533

YoY

-8%

-10%

-18%

3%

-3%

0%

29%

Netprofit

4,328

3,882

2,548

964

371

1,334

9,630

YoY3SBio

Revenue

-26%

2024

9,108

-10%

-16%

27%

-33%

2%

148%

2025

1H25

2H25

2026E

17,696

4,355

13,340

10,298

YoY

17%

94%

-1%

183%

-42%

Netprofit

2,090

8,482

1,358

7,124

2,221

YoYUnitedLab

Revenue

35%

2024

13,759

306%

25%

612%

-74%

2025

1H25

2H25

2026E

13,211

7,519

5,692

12,087

YoY

0%

-4%

5%

-14%

-9%

Netprofit

2,660

2,086

1,894

192

1,253

YoYSimcere

Revenue

-2%

2024

6,635

-22%

27%

-84%

-40%

2025

1H25

2H25

2026E

7,731

3,585

4,092

9,662

YoY

0%

17%

15%

16%

25%

Netprofit

733

1,344

604

740

1,580

YoYHuadongMedicine

Revenue

3%

2024

41,906

86%

32%

179%

18%

2025E

1H25

3Q25

4Q25E

2H25E

2026E

43,971

21,675

10,989

11,306

22,296

47,113

YoY

3%

5%

3%

5%

8%

6%

7%

Netprofit

3,512

3,876

1,803

939

1,134

2,073

4,424

YoYKelunPharma

Revenue

24%

2024

21,812

11%

7%

7%

22%

15%

14%

2025

1H25

3Q25

4Q25

2H25

2026E

18,513

9,083

4,193

5,236

9,430

20,950

YoY

2%

-15%

-23%

-15%

4%

-6%

13%

Netprofit

2,936

1,702

1,001

200

501

701

2,706

YoY

20%

-42%

-44%

-70%

8%

-38%

59%

Source:Companydata,UBSestimates,UBS-Sestimates

ChinaPharmaSector9April2026a§4

Figure5:Keycatalystssummary-ChinaPharmaSector

Hengrui

Hansoh

SinoBiopharm

CSPC

3SBio

Simcere

HuadongMedicine

UnitedLab

KelunPharma

Noveldrugscatalyst—clinicalstage

Datareadout

1)ADCassetdataupdates,suchasSHR-A1811(HER2ADC);SHR-A2102(nectin-4ADC),PoCdataofearlystageADCs;2)PoCdataofnovelGLP-1candiate:HRS-4729

1)Ph3dataofHS20093(B7H3

ADC),HS20089(B7H4ADC),andHS10374(TYK2),2)Ph2dataofinsomniadrugHS10506(OX2R),and3)first-in-humandataoforalTYK2,oralIL23,andoralGLP-1.

1)AACR:MK-2010/LM-299(PD-

1/VEGF)FIHPh1data,nectin4ADCpreclinicaldata,andSTnADC

preclinicaldata.2)ASCO:LM-302(CLDN18.2ADC)Ph2datain1L

GC.3)ERS:TQC3721(PDE3/4)Ph1

datainCOPD.4)ESMO:LM-108

(CCR8mAb)Ph2datain1LPCand1LGC.

1)SYS6010(EGFRADC)Ph3datain2LEGFRmutNSCLC;2)KN026(HER2bsAb)Ph3datain1LBC,

neoadjuvantBCandGC(OSupdate);3)CM326(TSLP)ph2asthma

ASCO:Ph2Chinatrialdatain

NSCLC(SSGJ-707mono)andendometrialcancer

1)SIM0500

(GPRC5D/BCMA/CD3)Ph1

doseescalationdatabyend-

2026;2)SIM0237(PD-L1/IL-15v):H126;3)SIM0505

(CDH6ADC),SIM0501

(USP1)andSIM0508(POLQ)

1)HDM1002(oralGLP1)ph3datainAug-Sep2026;2)DR10624

(FGF21/GCG/GLP1)ph2MASHdata

Potentialph2datareadoutofUBT251

1)Sac-TMTfirstglobaltoplineph3data,late2026/early2027E;2)Sac-TMT1LTPS≥1%NSCLC(ASCO

2026,withsq/nsqcohortsplit),1LTNBC(China,ESMO2026),1L

TPS<1%NSCLC(ESMO2026)

Clinicaldevelopment

PivotaltrialinitiationofGLP-1/GIPoverseas

1)Initiationofoverseaspivotal

studyforHS-20089(B7H4)and

overseasph3studyforHS-20094

(GLP1/GIP);2)filingforNDA:HS-

10241(CMET);3)HS-10506(OX2R)enteringph3;4)HS-20094

(GLP1/GIP)obesityNDAfiling

NDAfiling:M701(CD3/EpCAM

bsAb).Initiationofoverseasclinicaltrialsonrovadicitinib(JAK/ROCK

inhibitor)

BLAfiling:SYS6010(EGFRADC)2LNSCLCin2026,TG103(Fc-GLP1)T2DMin1H26

1)Initiationofoverseasclincial

trialsonSSGJ-707;2)Filingfor

NDA:WS204-Clascoterone,DB-1303(HER-2ADC)inEC,

semaglutidein2026

NDAfiling:Endostar

indicationexpansionof

malignantpleuroperitonealeffusion

InitiationofoverseasPh2trialforUBT251'sT2DM

indicationin2H26.

InitiationofPh3trialsin

overweight/obesityand

T2DMindicationsinChinainQ326.

R&DprogressofSKB571

(EGFR/cMETADC),SKB118(PD-

1/VEGF)andotherearlystage

assets,suchasSKB107(RDC),bsAbADC,dualpayloadADC

Noveldrugscatalyst

—commercialisation

NDA/marketing

approvalexpectation

1)HRS-9531(GLP-1/GIP);2)Hetrombopag(TPOR)forCIP/

pediatricITP;3)Ivarmacitinib(JAK1)ointmentformild-to-

midatopicdermatitis;Radiographicnegativeaxial

spondyloarthritis

4)Ruzinurad(URAT1)forgoutwithhyperuricemia;5)

CyclosporineAophthalmicsolutionfordryeyedisease;6)

HR19034(atropine)forpediatricmyopia;7)Fluzoparib

(PARP)for1LmCRPC,incombowithAR;8)Famitinib(TKI)incombowithcamrelizumabforPD-L1+mNSCLC;9)HER2

ADCfor3LCRC;10)RemimazolamforICUsedationduringmechanicalventilation;11)SHR-7280(GnRHR)for

NDAfilings:HS20093(B7H3ADC),HS20094(GLP-1/GIP),HS10374

(TYK2)inChina.

PL-5,flurbiprofenpatch(2ndgen),anlotinib(1LRCCand1Lsq-

NSCLC)

1)Anbenitamab(HER2bsAb),2)

Batoclimab(FcRn),3)Irinotecan

(TOP1,FDA),4)TG103(Fc-GLP1)obesity

1)SSS06(second-genrhEPO),2)

SSGJ-608(IL-17A),3)SSGJ-613(IL-1b),4)bevacizumab-601A

1)Rademikibart(IL-4Rα),2)DeunoxavirMarboxil(PA)

QX005N,ranibizumab,roflumilast,EllanseM,recombinantBotox,

MaiLiPreciseandV30inthenext12months

Semaglutideandinsulindegludec

·Sac-TMT'ssNDAapprovalfor1LNSCLC(TPS≥1%),2027E

·A400(RET)NDAinRET+NSCLCinChina,H226E

preventionofearlyovulation;12)SHR-1918(ANGPTL3)forHoFH;13)Camrelizumab+apatinibtreating1LHCCintheUS,PDUFAdate23July,2026

Newproductsales

ramp-upin2026E

Innovativedrugsalesramp-up

Double-digitgrowthinboth

productsalesandcollaborationrevenue

Double-digitrevenueandprofitgrowthin2026

Innovativedrugsalesramp-up

Continuedrevenueramp-upof

Mandi,RemitchandLiporaxel

30%growthinboth

revenueandadjustedprofit

Rmb3bninnovativedrugrevenue,salesramp-upofustekinumab,

Elahere(FRaADC),CT053(BCMACAR-T),mefatinib,MB-102,etc.

Sac-TMTsalesinChinagrowthin2026afterNRDLnegotiation

2025NRDLinclusion,

first-time(pricecut)

Trastuzumabrezetecan(-55.8%)

Ivarmacitinib(-26.1%)

Recaticimab(-67.0%)

Vunakizumab(-24.1%)

IrinotecanLiposome(-59.1%)

Perfluorohexyloctane(-59.4%)

Fosrolapitant+Palonosetron(-79.3%)

Garsorasib(-72%),FactorVIIa(-29%)

DuoEnYi(-71%)

Liporaxelpaclitaxeloralsolution

Enzeshu(-61%)

Senaparib(-46%)

Sac-TMT(-52%)

2025NRDLinclusion,renewal(pricecut)

Mecapegfilgrastim(-25.8%)Fluzoparib(-3.7%)

Apatinib(0%)

Ameile(-7%),HengMu(-6%),SaintLuoLai

Yilishu(-30%),anlotinib

DuoEnDa,Omalizumab(-18%),AnFuLiKe(-3%)

XianNuoXin

GenericsGPOrisks

11thGPO2024revenueexposure

0.0%

0.6%

3.4%

0.2%

0.0%

0.0%

4.4%

0.0%

0.0%

Source:Companydata,IQVIA,Insight,UBS-S,UBS

ChinaPharmaSector9April2026婚§5

ValuationMethodandRiskStatement

WebelieverisksforChina'shealthcareindustryinclude:1)worse-than-expectedpricecutsfromGPOprogrammes;2)intensifiedcompetition;3)innovativedrugpricesnegotiatedforNRDLsbeinglowerthanexpected;4)slower-than-expectedconsumptionrecoveryinChina;5)stricter-than-expectedregulationannouncementandimplementation;6)unexpectedrisingofgeopoliticaltensionsimpactingcompanies'operations.

ChinaPharmaSector9April2026a§6

RequiredDisclosures

ThisdocumenthasbeenpreparedbyUBSSecuritiesAsiaLimited,anaffiliateofUBSAG.UBSAG,itssubsidiaries,branchesandaffiliates,includingformerCreditSuisseAGanditssubsidiaries,branchesandaffiliatesarereferredtohereinas"UBS".

ForinformationonthewaysinwhichUBSmanagesconflictsandmaintainsindependenceofitsUBSGlobalResearchproduct;historicalperformanceinformation;certainadditionaldisclosuresconcerningUBSGlobalResearchrecommendations;andtermsandconditionsforcertainthirdpartydatausedinresearchreport,pleasevisit

/disclosures.Unless

otherwiseindicated,informationanddatainthisreportarebasedoncompanydisclosuresincludingbutnotlimitedtoannual,interim,quarterlyreportsandothercompanyannouncements.Thefigurescontainedinperformancechartsrefertothepast;pastperformanceisnotareliableindicatoroffutureresults.Additionalinformationwillbemadeavailableuponrequest.UBSSecuritiesCo.LimitedislicensedtoconductsecuritiesinvestmentconsultancybusinessesbytheChinaSecuritiesRegulatoryCommission.UBSactsormayactasprincipalinthedebtsecurities(orinrelatedderivatives)thatmaybethesubjectofthisreport.Thisrecommendationwasfinalizedon:08April202604:39PMGMT.UBShasdesignatedcertainUBSGlobalResearchdepartmentmembersasDerivativesResearchAnalystswherethosedepartmentmemberspublishresearchprincipallyontheanalysisofthepriceormarketforaderivative,andprovideinformationreasonablysufficientuponwhichtobaseadecisiontoenterintoaderivativestransaction.WhereDerivativesResearchAnalystsco-authorresearchreportswithEquityResearchAnalystsorEconomists,theDerivativesResearchAnalystisresponsibleforthederivativesinvestmentviews,forecasts,and/orrecommendations.QuantitativeResearchReview:UBSGlobalResearchpublishesaquantitativeassessmentofitsanalysts'responsestocertainquestionsaboutthelikelihoodofanoccurrenceofanumberofshorttermfactorsinaproductknownasthe'QuantitativeResearchReview'.Viewscontainedinthisassessmentonaparticularstockreflectonlytheviewsonthoseshorttermfactorswhichareadifferenttimeframetothe12-monthtimeframereflectedinanyequityratingsetoutinthisnote.Forthelatestresponses,pleaseseetheQuantitativeResearchReviewAddendumatthebackofthisreport,whereapplicable.Forpreviousresponsespleasemakereferenceto(i)previousUBSGlobalResearchreports;and(ii)wherenoapplicableresearchreportwaspublishedthatmonth,theQuantitativeResearchReviewwhichcanbefoundat

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quantitative

,orcontactyourUBSsalesrepresentativeforaccesstothereportortheQuantitativeResearchTeamonubs-quant-

answers@.Aconsolidated

reportwhichcontainsallresponsesisalsoavailableandagainyoushouldcontactyourUBSsalesrepresentativefordetailsandpricingortheQuantitativeResearchteamontheemailabove.

AnalystCertification:

Eachresearchanalystprimarilyresponsibleforthecontentofthisresearchreport,inwholeorinpart,certifiesthatwithrespecttoeachsecurityorissuerthattheanalystcoveredinthisreport:(1)alloftheviewsexpressedaccuratelyreflecthisorherpersonalviewsaboutthosesecuritiesorissuersandwerepreparedinanindependentmanner,includingwithrespecttoUBS,and(2)nopartofhisorhercompensationwas,is,orwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedbythatresearchanalystintheresearchreport.

UBSGlobalResearch:GlobalEquityRatingDefinitions

12-MonthRating

Definition

Coverage1

IBServices2

Buy

FSRis>6%abovetheMRA.

54%

24%

Neutral

FSRisbetween-6%and6%oftheMRA.

40%

21%

Sell

FSRis>6%belowtheMRA.

6%

21%

Short-TermRating

Definition

Coverage3

IBServices4

Buy

Stockpriceexpectedtorisewithinthreemonthsfromthetimetheratingwasassignedbecauseofaspecificcatalystorevent.

<1%

<1%

Sell

Stockpriceexpectedtofallwithinthreemonthsfromthetimetheratingwasassignedbecauseofaspecificcatalystorevent.

<1%

<1%

Source:UBS.Ratingallocationsareasof31March2026.

1:Percentageofcompaniesundercoveragegloballywithinthe12-monthratingcategory.

2:Percentageofcompanieswithinthe12-monthratingcategoryforwhichinvestmentbanking(IB)serviceswereprovidedwithinthepast12months.

3:PercentageofcompaniesundercoveragegloballywithintheShort-Termratingcategory.

4:PercentageofcompanieswithintheShort-Termratingcategoryforwhichinvestmentbanking(IB)serviceswereprovidedwithinthepast12months.

ChinaPharmaSector9April2026a§7

KEYDEFINITIONS:ForecastStockReturn(FSR)isdefinedasexpectedpercentagepriceappreciationplusgrossdividendyieldoverthenext12months.Insomecases,thisyieldmaybebasedonaccrueddividends.MarketReturnAssumption(MRA)isdefinedastheone-yearlocalmarketinterestrateplus5%(aproxyfor,andnotaforecastof,theequityriskpremium).UnderReview(UR)StocksmaybeflaggedasURbytheanalyst,indicatingthatthestock'spricetargetand/orratingaresubjecttopossiblechangeinthenearterm,usuallyinresponsetoaneventthatmayaffecttheinvestmentcaseorvaluation.EquityPriceTargetshaveaninvestmenthorizonof12months.

EXCEPTIONSANDSPECIALCASES:UKandEuropeanInvestmentFundratingsanddefinitionsare:Buy:Positiveonfactorssuchasstructure,management,performancerecord,discount;Neutral:Neutralonfactorssuchasstructure,management,performancerecord,discount;Sell:Negativeonfactorssuchasstructure,management,performancerecord,discount.CoreBandingExceptions(CBE):Exceptionstothestandard+/-6%bandsmaybegrantedbytheInvestmentReviewConsultation(IRC).FactorsconsideredbytheIRCincludethestock'svolatilityandthecreditspreadoftherespectivecompany'sdebt.Asaresult,stocksdeemedtobeveryhighorlowriskmaybesubjecttohigherorlowerbandsastheyrelatetotherating.Whensuchexceptionsapply,theywillbeidentifiedintheCompanyDisclosurestableintherelevantresearchpiece.

Researchanalystscontributingtothisreportwhoareemployedbyanynon-USaffiliateofUBSSecuritiesLLCarenotregistered/qualifiedasresearchanalystswithFINRA.SuchanalystsmaynotbeassociatedpersonsofUBSSecuritiesLLCandthereforearenotsubjecttotheFINRArestrictionsoncommunicationswithasubjectcompany,publicappearances,andtradingsecuritiesheldbyaresearchanalystaccount.Thenameofeachaffiliateandanalystemployedbythataffiliatecontributingtothisreport,ifany,follows.

UBSAGHongKongBranch:AnitaWei,LizHan,CFA.UBSSecuritiesCo.Limited:ChenChen,PhD,DavidGuo,PhD.

CompanyDisclosures

CompanyName

Reuters

12-monthrating

Price

Pricedate

3SBioInc28

1530.HK

Buy

HK$23.76

08Apr2026

CSPCPharmaceuticalGroup16,28

1093.HK

Neutral

HK$9.31

08Apr2026

HansohPharmaceutical28

3692.HK

Buy

HK$38.22

08Apr2026

HuadongMedicine

000963.SZ

Buy

Rmb36.25

08Apr2026

JiangsuHengruiPharmaceuticals2,4,18a,18b

1276.HK

Buy

HK$66.65

08Apr2026

JiangsuHengruiPharmaceuticals-A2,4,18a,18b

600276.SS

Buy

Rmb57.45

08Apr2026

KelunPharmaceutical

002422.SZ

Neutral

Rmb34.63

08Apr2026

SimcerePharmaceuticalGroup

2096.HK

Buy

HK$13.73

08Apr2026

SinoBiopharmaceutical16,28

1177.HK

Buy

HK$6.04

08Apr2026

TheUnitedLaboratories2,4,5,6,28,7

3933.HK

Buy

HK$10.46

08Apr2026

Source:UBSGlobalResearch;LSEGEikon.Allpricesasoflocalmarketclose.Ratingsinthistablearethemostcurrentpublishedratingspriortothisreport.Theymaybemorerecentthanthestockpricingdate.

2.UBShasactedasmanager/co-managerintheunderwritingorplacementofsecuritiesofthiscompany/entityoroneofitsaffiliateswithinthepast12months.

4.Withinthepast12months,UBShasreceivedcompensationforinvestmentbankingservicesfromthiscompany/entityoroneofitsaffiliates.

5.UBSexpectstoreceiveorintendtoseekcompensationforinvestmentbankingservicesfromthiscompany/entitywithinthenextthreemonths.

6.Thiscompany/entityis,orwithinthepast12monthshasbeen,aclientofUBSSecuritiesLLCand/oritsaffiliates,andinvestmentbankingservicesarebeing,orhavebeen,provided.

7.Withinthepast12months,UBShasreceivedcompensationforproductsandservicesotherthaninvestmentbankingservicesfromthiscompany/entity.

16.UBSSecuritiesHongKongLimitedisamarketmakerintheHongKong-listedsecuritiesofthiscompany.

18a.Mar