GEMS FIRST TO MARKET

Research evidence excerpt

GEMS FIRST TO MARKET

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2-day Chengdu tour takeaways: Rising innovation, partnerships and global execution

Our two-day Chengdu healthcare tour on 14–15 July was well attended by both generalist and specialist investors and covered

a broad range of biotech/pharma, CRO and medtech companies (in total 9 companies: Kelun Pharma, Kelun Biotech, Hinova,

Haisco Pharma, Baili Pharma, Zenitar, Keymed, Hitgen, and HxMedbot). One of the clearest takeaways was the broad push to

adopt AI: many biotech companies are already applying it across drug discovery and development, while others are investing

heavily to embed it into their R&D workflows. More broadly, the company meetings reinforced our constructive view on China

healthcare innovation, with leading companies translating stronger R&D platforms into clinical validation and global

development opportunities, while recent policy tightening on drug sales representatives has not seen much impact in 2Q26. We

continue to like biotech and CXO subsectors the most. In biotech, we like Kelun Biotech and Innovent. In CXO, we like WuXi

Apptec and WuXi Bio. In addition, we also like Medbot.

| | LatAm QSR (Froylan Mendez), Mexico

Rotating Preference to Arcos Dorados from Alsea as Mexico SSS Decelerates and Brazil Inflects

We are shifting preference from Alsea to Arcos Dorados, downgrading Alsea to Neutral (from Overweight) while upgrading

Arcos Dorados to Overweight (from Neutral), and establishing Dec-2027 price targets for both companies. Our sector stance

remains conservative overall, reflecting constrained disposable income in the key regions (Mexico and Brazil) and a still-fragile

discretionary backdrop. The rotation is driven by a clear trend change in same-store-sales (SSS) dynamics: for Alsea, we see