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China Healthcare Biweekly / Hong Kong Property / Trip.com
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Sector Update | China Healthcare
After gaining 9.3% in August on strong 1H26 results, the HSHCI slipped 2.5% in 1-16 Sep 26 on overall weak market sentiment. Innovent, BeOne, and Hansoh Pharma experienced a pullback in the past two weeks, whereas Insilico, HUTCHMED, Akeso, Edge Medical, and WuXi AppTec strengthened. China biopharma innovation continues to advance, with Category 1 drug approvals and out-licensing deal value both at record highs ‒ boding well for sustainable earnings growth. Maintain MARKET WEIGHT.
Sector Update | Hong Kong Property
The HKSAR government has published the 2026 Policy Address and Hong Kong’s first Five-Year Plan, emphasising policy continuity and consistency. The near-term impact on the housing market is neutral, in our view. The Five-Year Plan identified NM land creation as its only binding economic indicator. This may reshape the investment and land-banking strategy of developers. Maintain MARKET WEIGHT. Rising HIBOR and tightening tax polices are major risks. Top picks: SHKP and Link REIT.
Company Results | Trip.com (9961 HK/BUY/HK$322.00/Target: HK$508.00)
Trip.com reported in-line 2Q26 results. Total net revenue rose 6% yoy to Rmb15.6b, in line with our expectation. Non-GAAP operating profit declined 6.5% but exceeded estimates. Non-GAAP net income fell 4.3% yoy to Rmb4.8b, but beat our and consensus estimates by 16-19%. Trip.com guided 3Q26 revenue growth of 1-6% yoy, reflecting weaker domestic travel demand and ongoing regulatory adjustments, with further pressure expected in 4Q26 from a full-quarter regulatory impact. Maintain BUY with an unchanged target price of HK$508.00 (US$65.00).
Top Stories
Sector Update | China Healthcare
After gaining 9.3% in August on strong 1H26 results, the HSHCI slipped 2.5% in 1-16 Sep 26 on overall weak market sentiment. Innovent, BeOne, and Hansoh Pharma experienced a pullback in the past two weeks, whereas Insilico, HUTCHMED, Akeso, Edge Medical, and WuXi AppTec strengthened. China biopharma innovation continues to advance, with Category 1 drug approvals and out-licensing deal value both at record highs ‒ boding well for sustainable earnings growth. Maintain MARKET WEIGHT.
Sector Update | Hong Kong Property
The HKSAR government has published the 2026 Policy Address and Hong Kong’s first Five-Year Plan, emphasising policy continuity and consistency. The near-term impact on the housing market is neutral, in our view. The Five-Year Plan identified NM land creation as its only binding economic indicator. This may reshape the investment and land-banking strategy of developers. Maintain MARKET WEIGHT. Rising HIBOR and tightening tax polices are major risks. Top picks: SHKP and Link REIT.
Company Results | Trip.com (9961 HK/BUY/HK$322.00/Target: HK$508.00)
Trip.com reported in-line 2Q26 results. Total net revenue rose 6% yoy to Rmb15.6b, in line with our expectation. Non-GAAP operating profit declined 6.5% but exceeded estimates. Non-GAAP net income fell 4.3% yoy to Rmb4.8b, but beat our and consensus estimates by 16-19%. Trip.com guided 3Q26 revenue growth of 1-6% yoy, reflecting weaker domestic travel demand and ongoing regulatory adjustments, with further pressure expected in 4Q26 from a full-quarter regulatory impact. Maintain BUY with an unchanged target price of HK$508.00 (US$65.00).
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