Healthcare - China (H): Postcard from Singapore: global-facing healthcare names more favored

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Healthcare - China (H): Postcard from Singapore: global-facing healthcare names more favored

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Healthcare - China (H)

Postcard from Singapore: global-facing

healthcare names more favored

Industry Overview

Singapore marketing key takeaways 26 June 2026

During 22-24 June, we met nearly 20 investors in Singapore. Overall, we note investors Equity

remained constructive on selected CXOs and pharma/biotech companies despite recent China

share-price weakness. We summarize our key takeaways below. Healthcare

Domestic-focused firms remain less attractive DavidResearchLi >>Analyst

Many investors we spoke with remain cautious on companies primarily reliant on Merrill+852 3508Lynch4531(Hong Kong)

domestic demand for the following reasons: 1) weak domestic consumption and a soft davidbo.li@bofa.com

macro backdrop continue to weigh on growth, resulting in uninspiring earnings Sandra Sun >>

trajectories and ongoing de-rating; and 2) investors do not yet see a clear near-term ResearchMerrill LynchAnalyst(Hong Kong)

inflection point in fundamentals or strong policy support. As a result, investors showed sandra.sun@bofa.com

relatively less interest on traditionally domestic-oriented subsectors, including premium Ethan Cui >>

Research Analyst

TCM, pharma distributors, healthcare services, and medical aesthetics. Merrill Lynch (Hong Kong)

ethan.cui@bofa.com

Global story: solid fundamentals but weak share prices

In contrast, investors continue to prefer companies with globalization narratives given

CXO: CRO/CDMO, Contract Researchtheir fundamental improvements, although recent share-price performance remained

Organization/Contract Developmentweak. Many investors highlighted the following observations: 1) solid growth trends, as