Daily Investment Strategy
Daily focus：Innovent Bio（1801）
Previously on Jan 3, the Group announced that China NMPA has approved the second New Drug Application (NDA) of DOVBLERON® (taletrectinib adipate capsule), a next-generation ROS1 tyrosine kinase inhibitor (TKI), for the treatment of adult patients with locally advanced or metastatic ROS1-positive NSCLC. Looking ahead, more drugs from Innovent are expected to be approved for market launch to support continuous revenue growth. Among them, investors are generally optimistic about the development of weight loss medications. Innovent 's mazdutide (globally the first GLP-1R/ GCGR agonist in the NDA stage) is particularly promising. It has demonstrated excellent potential as a next-generation GLP-1 drug in Phase III trials, including significant weight loss and blood sugar control benefits, unique liver benefits, comprehensive cardiovascular metabolic advantages, and superior safety tolerance. Currently, two NDAs for mazdutide have been accepted by the NMPA. Investors who are optimistic towards the prospect of biopharmaceutical companies are encouraged to consider medium-to-long-term investments, using dollar-cost averaging method. Target price: $39.
S&P 500 ends higher as cyclical stocks offset losses in tech stocks
Cyclical stocks including materials and energy sparked a broader market recovery as investors retreated from growth stocks, including technology stocks, amid concern about higher for longer interest rates. The White House announced new regulations for China's export of artificial intelligence chips. A series of semiconductor stocks including Nvidia fell, dragging down the overall technology sector. Concerns about a prolonged pause in rate cuts by the Federal Reserve have also weighed on technology stocks overall, pushing Treasury yields higher, with some investors betting there will be just one rate cut this year due to concerns about inflation. Economists expect the CPI to increase by 2.9% annually in December, higher than the 2.7% increase last month. On a monthly basis, the figure is expected to be unchanged from November's 0.3%.
Hong Kong Stock Connect had a net inflow of HK$6.57bn on Monday of which Tencent (700) had the largest net inflow, reaching HK$2.88bn; followed by SMIC (981). Xiaomi (1810) recorded the largest net outflow at $0.32bn, followed by Meituan (3690).
Wen Kit Kenny is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to:https://apps.sfc.hk/publicregWeb/indi/AJF244/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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