Hengrui Valuation reset creates re-entry opportunity; upgrade H-shares to OW

研报英文原文证据摘录

Hengrui Valuation reset creates re-entry opportunity; upgrade H-shares to OW

J P M O R G A N Asia Pacific Equity Research

15 June 2026

This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the

territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

Hengrui

Valuation reset creates re-entry opportunity; upgrade H-

shares to OW

We upgrade Hengrui H-shares to OW from Neutral. The stock has declined from Healthcare

ACa 52-week high of HK$95 to trade at HK$53, a correction of about 40% (vs the Yang Huang

CSI300 Health down 32% over the same period) that we attribute primarily to (852) 2800 3812

sector-wide sentiment deterioration in China healthcare rather than material yang.huang@jpmorgan.com

changes in Hengrui’s fundamental outlook. The recent sell-off reflects macro J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

headwinds, including expanding US-China geopolitical tensions and broad

Eric Zhao, CFA

institutional de-risking of H-share healthcare exposure, which has re-rated the (86-21) 6106 6256

sector rather than penalized Hengrui specifically. At current levels, the H-share/A- eric.zhao@jpmorgan.com

share stock trades at approximately 33x/34x forward PE, more than two standard SAC Registration Number: S1730524050001

deviations below the historical mean and no longer adequately reflects the J.P. Morgan Securities (China) Company Limited

company’s improving earnings trajectory, rapidly expanding pipeline value, and Derek Choi

long-term BD related income. Nonetheless, we trim our longer term forecasts for (852) 2800-8744