Hot Analysis of Hengrui Pharmaceuticals: Market Attention Drawn by JPM Conference Appearance and New Drug R&D Breakthroughs

Hengrui Pharmaceuticals becoming a hot stock was directly triggered by the concentrated release of multiple positive catalysts. On January 12, 2026, the 44th J.P. Morgan Healthcare Conference (JPM) was held in San Francisco, USA. Jiang Ningjun, Executive Vice President and Chief Strategy Officer of Hengrui Pharmaceuticals, took the JPM stage to present the company’s strategic vision to global investors [1][2]. This marks Hengrui’s second appearance at this top-tier global pharmaceutical investment summit following its debut in 2025, demonstrating a significant increase in its brand influence in the international capital market.

The company has laid out over 100 new molecular entities (NMEs) across four core therapeutic areas: oncology, cardiovascular and metabolic diseases, immunology and respiratory diseases, and neuroscience, with over 400 clinical trials currently underway [1][2]. Management expects milestone breakthroughs in 2026, including the approval of over 10 innovative drugs or indications, submission of over 20 NDA/BLA applications, and release of data from 25 Phase III studies. Key data for blockbuster assets such as HER2 ADC, KRAS G12D inhibitor, and oral GLP-1 will be revealed soon [1][2].

More substantially, the company announced R&D progress on the same day. On January 20, 2026, Hengrui Pharmaceuticals issued an announcement stating that the company and its subsidiaries had received clinical trial approvals from the National Medical Products Administration (NMPA) for multiple new drugs [3][4][5]. Specifically: SHR-9839 (for injection, sc) was approved for combined anti-tumor therapy for advanced solid tumors, with an R&D investment of approximately RMB 93.9 million; HRS-4642 injection was approved for advanced colorectal cancer, with an R&D investment of approximately RMB 254 million. This is the company’s independently developed KRAS G12D inhibitor, and no similar drug has been approved for marketing at home or abroad; HRS-2141 tablets were approved for the treatment of type 2 diabetes [3][4][5]. In addition, SHR-1826 for injection, developed by subsidiary Suzhou Sundia Pharmaceuticals, was included in the Breakthrough Therapy Designation list by the Center for Drug Evaluation (CDE) of NMPA on January 16. This is an antibody-drug conjugate (ADC) targeting c-Met, which is expected to accelerate its R&D process through priority resource allocation mechanisms [6].

Based on market data, the current share price of Hengrui Pharmaceuticals is RMB 60.50 (previous close: RMB 61.12), with an intraday trading range of RMB 60.40-61.65 [7][8]. Although the share price fell by approximately 1.01% on January 20, the trading volume reached 42.78 million shares, which is about 10.4% higher than the three-month average of 38.74 million shares, indicating sustained rising market attention [7]. The company’s market capitalization is approximately RMB 400-420 billion, with a 52-week trading range of RMB 43.67-74.04, and the current price is in the lower-middle range of this interval [7][8].

Technical indicators show that the stock’s RSI (14) is 62.96, which is in a neutral-to-bullish zone but not yet overbought [8]. The beta coefficient is 0.42, indicating relatively low stock price volatility and a certain degree of resilience during market corrections [8]. The gross profit margin is as high as 86.3%, and ROE is 14.5%, reflecting strong profitability. However, the P/B ratio is 7.12, which is at a moderately high level [8]. A “golden cross” pattern has recently appeared in the stock, and the medium-term technical trend remains positive [6].

In terms of capital market ratings, Citi released its China market strategy report on January 14, 2026, listing Hengrui Pharmaceuticals (01276.HK) as a top H-share pick with a target price of HK$134 [9]. JPMorgan gave a Buy rating with a target price of RMB 78 on October 29, 2025; UBS gave a Buy rating with a target price of RMB 78.6 on September 29, 2025; Macquarie gave a Buy rating with a target price of RMB 90 on September 8, 2025 [7]. Of the 23 analysts, 23 have assigned a Buy rating and 1 has assigned a Sell rating, resulting in an overall “Strong Buy” rating. The 12-month average target price is RMB 82.86, implying a potential upside of approximately 37% from the current price [7].

From a valuation perspective, Hengrui Pharmaceuticals currently has a trailing twelve months (TTM) price-to-earnings (P/E) ratio of 55.10, which is at a moderately high level historically [8]. Considering the company’s rich pipeline of innovative drugs, sustained high growth in R&D investment (annual R&D investment accounts for over 25% of revenue), and fruitful BD collaborations (12 out-licensing transactions completed since 2023, with a total value exceeding USD 27 billion), the valuation has certain fundamental support. However, investors still need to pay attention to the following risk factors:

is the primary factor to consider. New drug clinical trials carry the risk of failure, and R&D investment may not yield expected returns. Competition in hot areas such as GLP-1 and ADC is intensifying, with domestic and foreign pharmaceutical companies all laying out their pipelines. There is uncertainty as to whether Hengrui can maintain a leading edge in the fierce competition [1][2].

also cannot be ignored. The pressure of price cuts in medical insurance negotiations persists, and changes in industry policies may affect the company’s revenue growth. Although 10 new products have been included in the updated National Medical Insurance Catalog, their sales volume growth remains to be seen [1][2].

involves overseas regulatory approval and geopolitical factors. Although the company has established partnerships with global pharmaceutical companies such as Merck & Co., GSK, and Kailera, overseas market expansion still faces uncertainties [1][2]. In addition, the H-share listing plan involves exchange rate fluctuation risks, which investors need to pay attention to.

: In terms of short-term risk signals, the share price fell 1% on January 20, and may continue to consolidate in the short term. Although the RSI is not overbought, it is already at a relatively high level. Market attention has soared after the JPM Conference, so investors need to be wary of the risk of a short-term pullback due to over-optimism [7].

For investors who continue to follow Hengrui Pharmaceuticals, the following time nodes deserve close attention: The company will release its annual financial report on March 25, 2026, where investors can learn about its 2025 performance and 2026 business guidance in detail [7]; Progress in new drug approvals and launch will directly affect the company’s revenue growth; BD collaboration announcements may bring one-time licensing revenue and validate the value of the company’s pipeline; Progress in the H-share listing plan will affect the company’s valuation system and financing capacity; Medical insurance sales volume growth data is a key indicator to verify the company’s commercialization capability [1][2].

From a support and resistance level analysis, the support levels below the current price of RMB 60.50 are, in order, the integer level of RMB 60, the lower edge of the recent consolidation range at RMB 58, and the key medium-term support at RMB 55; The resistance levels above are, in order, the upper edge of the recent consolidation range at RMB 63, the 50-day moving average pressure at RMB 68, and the 52-week high at RMB 74.04. The average target price of RMB 82.86 provides a clear medium-term reference [7].

Hengrui Pharmaceuticals making it to the hot stock list is the result of combined effects of fundamental catalysts and market sentiment. The breakthroughs in FIC/BIC pipelines showcased at the JPM Conference, substantial progress in clinical trial approvals for multiple new drugs, and positive ratings from international investment banks together form the driving force for the share price’s upward movement. 2026 will be a year with an unprecedentedly high concentration of catalysts for Hengrui, with over 10 innovative drugs or indications expected to be approved, 25 Phase III study data to be released, and progress in the H-share listing plan. These factors provide medium-to-long-term value support for the company.

However, investors should also maintain a cautious attitude. The high-risk nature of R&D, relatively high valuation level, and short-term fluctuations in market sentiment may all affect the share price. It is recommended that investors formulate corresponding strategies based on their own risk preferences: Medium-to-long-term investors may accumulate positions on dips, with a target reference around RMB 82.86; Short-term traders need to pay attention to the breakout direction of the RMB 60-63 consolidation range; Investors with lower risk tolerance may wait for a pullback to the RMB 58-60 range before entering. Regardless of the strategy adopted, continuous tracking of R&D progress, BD collaboration dynamics, and the H-share listing plan is key to seizing investment opportunities.