1、M IdeaChina Healthcare|Asia PacificChina Pharma 2025 Earnings Preview&Initial 2026 OutlookHengrui remains our Top Pick we expect its product sales growth to accelerate in 2026,new deal momentum to be sustained,and more milestones to kick in.Globalization will remain a key investment theme,in particu

2、lar pipeline advances and option exercise by partners to unlock milestone flows.Morgan Stanley Asia Limited+Alexis Yan,CFAEquity Analyst Alexis.Y +852 2239-7953 Clinton NgEquity Analyst Clinton.N +852 2848-6659 China HealthcareAsia PacificIndustry ViewAttractiveRelated report:Catalyst Preview-China

3、Pharma.See inside for:1.Earnings preview(Exhibit 1 and Exhibit 2)2.Out-licensing deal trends(Exhibit 3,Exhibit 4)3.China pharma valuation charts(Exhibit 5 to Exhibit 9)4.Top Pick Jiangsu Hengrui Pharmaceuticals 5.Coverage Assumption-China Medical System With this report,Alexis Yan assumes coverage o

4、f Fosun Pharma(600196.SS,2196.HK)and Clinton Ng assumes coverage of China Medical System(0867.HK).Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research.As a result,investors should be aware that the firm may have a conflict of interest that could affect the o

5、bjectivity of Morgan Stanley Research.Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures,refer to the Disclosure Section,located at the end of this report.+=Analysts employed by non-U

6、.S.affiliates are not registered with FINRA,may not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company,public appearances and trading securities held by a research analyst account.Key TakeawaysHengrui,Hansoh,Sino Biopharma,and CM