Hengrui Medicine (600276.SH) Hot Stock Analysis: Surging Market Interest Driven by JPM Healthcare Conference and Intensive New Drug Clinical Trial Approvals

Hengrui Medicine’s appearance on the hot stock list is the result of multiple catalysts acting together.

is the most direct trigger. Jiang Ningjun, Executive Vice President and Chief Strategy Officer of Hengrui Medicine, delivered a speech at the conference, presenting the company’s clear development blueprint to global investors[1][2]. As the most influential annual event in the global healthcare industry, the JPM Conference has long been known as the “industry weather vane”, and Hengrui’s positive performance on this occasion has directly boosted market attention.

form the second catalyst. Between January 20 and 21, a subsidiary of Hengrui Medicine successively received multiple drug clinical trial approval notices from the National Medical Products Administration (NMPA), including SHR-9839 for injection (for advanced colorectal cancer, with an R&D investment of approximately RMB 93.9 million)[3], HRS-4642 injection (a KRAS G12D inhibitor, liposome formulation, with an R&D investment of approximately RMB 254 million)[3], HRS-2141 tablets (a fixed-dose combination for type 2 diabetes, with an R&D investment of approximately RMB 5.4 million)[4], SHR-7787 injection (a Class 1 therapeutic biological product), and Adebrelimab injection (an anti-PD-L1 monoclonal antibody)[5]. Among them, as a KRAS G12D inhibitor, no similar drug has been approved for marketing at home or abroad for HRS-4642, giving it a significant first-mover advantage; SHR-9839 simultaneously blocks two key signaling pathways related to tumor occurrence and development, and only 1 drug with the same target has been approved globally[3].

have injected a shot in the arm into the market. At the JPM Conference, Hengrui showcased the progress of building its global clinical and registration system, emphasizing the steady advancement of its internationalization process through flexible and diverse BD collaborations and solid overseas team building[1][2]. The company’s listing on the Hong Kong Stock Exchange provides important support for international financing and brand enhancement, and its “dual-drive” model (R&D investment exceeding 25% of revenue + accelerated BD collaborations) has achieved remarkable results.

In terms of fundamentals, Hengrui Medicine achieved operating revenue of RMB 23.188 billion and net profit attributable to parent company shareholders of RMB 5.751 billion in the first three quarters of 2025[4]. Although both revenue and net profit declined in Q3 2025 (revenue fell 14.84% year-on-year, net profit fell 3.57% year-on-year)[9], the performance outlook for Q4 is upbeat. Consensus estimates show that Q4 revenue is expected to reach RMB 32.072-36.062 billion, representing a year-on-year growth of 14.6%-28.9%; net profit is projected to be RMB 7.882-10.096 billion, with a year-on-year growth of 24.4%-59.3%[6]. The company’s R&D investment has remained at a high level of over 25% of revenue, demonstrating its strategic focus on innovation-driven development.

Technically, Hengrui Medicine’s latest stock price is approximately RMB 58.99, with an intraday slight decline of 0.76%, a turnover rate of 1.27%, a transaction volume of approximately RMB 4.802 billion, and a total trading volume of approximately 808,000 lots[0]. From the daily chart trend, the stock price has been consolidating in the range of RMB 58-60 recently, with relatively active trading and sustained market attention[0]. In terms of market sentiment, the healthcare sector performed well in the U.S. market today, rising 0.54%, ranking 3rd among 11 sectors[8]. The Stock Connect Innovative Drug ETF (159570) has seen a net inflow of over RMB 430 million in the past 5 days[7], indicating that institutional capital continues to flow into the innovative drug sector, and Hengrui Medicine, as an industry leader, has benefited significantly.

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Hengrui Medicine currently has more than 100 new molecular entities (NMEs) and is conducting over 400 clinical trials[2], with a pipeline depth that leads among domestic and foreign pharmaceutical companies. Several drugs in development target unmet clinical needs. For example, KRAS G12D mutation is a key driver of various malignant tumors, but no targeted drug had been approved globally before. The breakthrough progress of HRS-4642 means that Hengrui is expected to seize the first-mover advantage in this niche market and share the potential blockbuster drug market.

At the 2026 JPM Conference, Hengrui Medicine’s internationalization strategy was recognized by global investors. The company not only introduces high-quality external assets through BD collaborations but also actively promotes the overseas launch of self-developed products. Its listing on the Hong Kong Stock Exchange provides financing channels and brand endorsement for its international layout. With the improvement of the company’s global clinical and registration system, it is expected that more products will be filed for marketing in mainstream markets such as the U.S. and Europe in the next 2-3 years, significantly raising the company’s valuation ceiling.

The innovative drug industry continues to receive policy support, and the country’s determination to promote innovative drug R&D is clear. From the capital perspective, the Stock Connect Innovative Drug ETF continues to attract capital inflows[7], indicating that institutional investors recognize the medium- and long-term allocation value of the innovative drug sector. Chinese innovative pharmaceutical companies collectively shone at the 2026 JPM Conference, significantly boosting market confidence in the entire sector[7]. As an industry leader, Hengrui has naturally become the focus of capital pursuit.

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Risk Type	Specific Description	Risk Level
Clinical Trial Risk	New drugs need to undergo clinical trials and be reviewed and approved by the NMPA before they can be produced and marketed, with uncertainties existing[3][4][5]	Medium-High
Performance Fluctuation Risk	Both revenue and net profit declined in Q3 2025, and the stability of performance remains to be verified[9]	Medium
Valuation Pressure	As a leader in innovative drugs, its valuation is relatively high, and attention needs to be paid to whether performance can be continuously delivered	Medium
R&D Investment Return Cycle	Cumulative R&D investment is huge, but commercialization returns have a long cycle	Medium
Industry Policy Risk	Changes in healthcare industry policies may affect the company’s operations	Medium-Low

: The fresh effect of the JPM Conference combined with the intensive approval of new drugs is expected to keep market attention at a high level in the short term, and trading activity will remain strong.

: The 2025 annual report disclosure on March 26, 2026[6] will verify the company’s performance guidance. The expected approval of several blockbuster drugs/indications will provide continuous momentum, and the company’s target of over 25% growth in innovative drug revenue in 2026[2] provides clear growth expectations for the market.

: Hengrui Medicine’s leading position in innovative drugs is stable, with great internationalization potential and the ability to become a global innovative pharmaceutical company, making it suitable as a core allocation target in the innovative drug sector.

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Hengrui Medicine’s appearance on the hot stock list is driven by dual catalysts:

and . At the conference, the company demonstrated a strong R&D pipeline (over 400 clinical trials), a clear internationalization strategy, and upbeat performance guidance (a target of over 25% growth in innovative drug revenue in 2026), which has significantly boosted market confidence in its long-term development.

: Its revenue and profit scale rank among the top in the industry, with leading R&D investment intensity, abundant pipeline reserves, and a significant improvement in Q4 performance expectations.

: The effect of the JPM Conference is still fermenting, and the approval of new drug clinical trials provides reasons for sustained attention. The annual report disclosure, subsequent BD collaborations, and clinical trial progress all constitute potential positive factors.

: There are uncertainties in clinical trials and commercialization, performance fluctuations need attention, and the valuation level is relatively high.

: It can be included in the watchlist, with focus on the March annual report, clinical trial progress, and BD collaboration announcements; considering the risks of valuation and performance fluctuations, over-weighting is not recommended, and it is suitable as a long-term allocation target in the innovative drug sector.

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: This report provides information collection, analysis, and market background to support decision-making, and does not constitute investment advice, trading recommendations, or financial guidance. The analysis aims to objectively present factual information, market background, and risk identification, and does not provide prescriptive advice on buying, selling, or holding securities.