UBS China Healthcare Weekly: Focus on ASCO 2026, AACR data, and selected stock catalysts amid sector pullback

Overview

This is a UBS China healthcare weekly report covering one-week performance of the A/H-share healthcare sector, ASCO 2026 abstract titles, AACR 2026 highlights, pharma and non-pharma industry news, key company results, and catalysts for selected stocks. The core backdrop of the report is that the sector pulled back during 20-24 April, but improving fundamentals, clinical data readouts, online penetration, and commercialization of innovative drugs still constitute structural opportunities.

Core views

UBS believes the healthcare sector has been affected by the broader market pullback in the short term, but the services segment has shown relative resilience in the A-share market, while TCM outperformed relatively in H-shares, reflecting defensive rotation. In innovative drugs, ASCO 2026 and AACR 2026 will be important windows for investors to assess pipeline value, with NSCLC, SCLC, ADC, PD-1/VEGF, and EGFR/HER3 among the key focus areas. At the stock level, the report highlights BeOne, WuXi XDC, JD Health, and 3SBio, and also lists multiple Buy-rated names in a broader selected list.

Analysis framework

The report combines weekly market performance tracking, conference catalyst review, company announcement and clinical data updates, industry policy and financing data tracking, key company earnings summaries, and selected-stock tables to form short-term event-driven and medium-term fundamental judgments on the China healthcare sector.

Methodology notes

• 行业周度跟踪A/H医疗保健指数与子行业比较

  Use the performance of HSHCI, HSBIO, SW Healthcare A/H, and sub-sector indices to observe investor risk appetite and relative resilience.

  The report compares the gains and losses of major healthcare indices and sub-sectors during 20-24 April, and uses the relative performance of services, TCM, and others to explain defensive rotation and improving fundamentals.

• 事件催化分析ASCO/AACR临床会议催化剂框架

  Assess potential investment catalysts for innovative drug companies through abstract titles, clinical data readouts, and key indications.

  The report focuses on NSCLC-related data at ASCO 2026, especially Akeso's HARMONi-6 interim OS data, and summarizes ADC and bispecific pipeline data from multiple companies at AACR 2026.

• 精选个股框架Top pick与催化剂表

  Map factors such as valuation, earnings growth, product pipeline, commercialization demand, online penetration, and overseas expansion to selected names.

  The report lists selected names such as BeOne, WuXi XDC, JD Health, and 3SBio, and supplements them with their Buy ratings and catalyst logic.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• BeOne

  Selected name, Biotech

  Strengths

  Rapid net profit growth, strong global position in hematologic oncology, and PoC for multiple solid tumor candidates in 2026 may become catalysts.

  Weaknesses

  Innovative drug valuation is sensitive to pipeline data and commercialization pace.

  Comparison

  The report believes its PE multiple is attractive relative to China pharma peers.

  Risks

  Clinical data below expectations, intensifying competition, and regulatory and pricing pressure.

• WuXi XDC

  Selected name, CRO/CRDMO

  Strengths

  Strong demand for bioconjugate drug development and commercial manufacturing, high visibility on revenue and profit momentum, and an attractive PEG multiple.

  Weaknesses

  Business depends on the demand cycle for bioconjugates and the health of outsourcing orders.

  Comparison

  The report positions it as a global leading CRDMO in the fast-growing bioconjugates field.

  Risks

  Order slowdown, impact from global regulation or geopolitics, and intensifying competition.

• JD Health

  Selected name, Online pharmacies

  Strengths

  Improving online drug penetration and market share growth support strong 2026E revenue, while OPM is stabilizing.

  Weaknesses

  The market still has concerns about the sustainability of growth momentum.

  Comparison

  The report believes it has the potential to exceed its own guidance and market expectations.

  Risks

  Slower online drug growth, competitive and regulatory pressure, and margin improvement below expectations.

• 3SBio

  Selected name, Pharma

  Strengths

  Attractive valuation, with potential licensing milestone income and data readouts providing catalysts.

  Weaknesses

  Catalyst realization depends on the timing of licensing and clinical data.

  Comparison

  Listed as Buy among selected pharma names.

  Risks

  Data readouts below expectations, delayed licensing deals, and drug pricing pressure.

• Yifeng

  Selected name, Pharmacy

  Strengths

  Accelerating store expansion, improving SSSG, likely recovery in earnings growth, and attractive valuation.

  Weaknesses

  The broader downturn in the pharmacy industry may still weigh on sentiment.

  Comparison

  UBS is more positive than market consensus and believes it can expand stores during the industry downturn.

  Risks

  Same-store growth weaker than expected, industry competition, and changes in medical insurance and retail pharmacy policy.

• Yuyue Medical

  Selected name, Medtech

  Strengths

  Overseas market penetration and rising China market share support 2026 revenue growth, with multiple catalysts from global product launches and registrations.

  Weaknesses

  There is uncertainty around the pace of overseas expansion and new product registrations.

  Comparison

  Rated Buy in the selected medtech table.

  Risks

  Registration delays, overseas commercialization below expectations, and price competition.

• Gushengtang

  Selected name, Healthcare services

  Strengths

  Domestic and overseas expansion and recovery in organic growth may bring 2026E earnings upside.

  Weaknesses

  Service-sector assets are relatively sensitive to consumption recovery and execution of expansion.

  Comparison

  The report believes there is potential upside to its earnings.

  Risks

  Slower-than-expected consumption recovery, higher-than-expected expansion costs, and regulatory changes.

Key data

• Weekly performance of HSHCI/HSBIO-5.1% / -6.0%Index pullback during 20-24 April.
• Weekly performance of SW Healthcare A/H-1.2% / -3.4%Ranked No.24/No.29 among A/H-share sectors, respectively.
• Performance of A-share healthcare services sub-sector+0.7%The report attributes this to improved Q126 fundamentals, reflecting relative resilience.
• Performance of H-share TCM sub-sector-1.1%Relatively outperformed, attributed to defensive rotation within the healthcare sector.
• China offline retail pharmacy salesRmb44.3bnMenet data shows a 0.3% YoY increase in February 2026.
• United Imaging share buyback planRmb300m-600m， price cap of Rmb140/shareTo be implemented through centralized bidding.
• Pulnovo Medical Series D financingUS$100mLed by Medtronic, focusing on breakthrough therapies for pulmonary hypertension and heart failure.
• Global biopharma monthly financingJan-Mar 2026 up 95% YoYFrom the chart title, with data sourced from FactSet and UBS-S.
• TCM raw material pricesDeclining after peaking in July 2024The chart indicates that Chinese medicinal material prices turned downward after the July 2024 high.
• Top picksBeOne, WuXi XDC, JD Health, 3SBioExplicitly listed in the report body as UBS's selected picks for this period.

Impact & implications

For investors, the short-term sector pullback makes valuation and risk appetite constraints, but ASCO/AACR data, innovative drug approvals and clinical progress, online pharmacy growth, improving fundamentals in the services segment, and earnings delivery by selected companies may provide structural opportunities. Sector allocation is better focused on clinical data certainty, visibility of earnings growth, valuation attractiveness, and tolerance for policy risk.

Risks

• VBP project price cuts exceeding expectations.
• Intensifying industry competition.
• Innovative drugs included in NRDL being negotiated at lower-than-expected prices.
• China consumption recovery slower than expected.
• Regulatory announcements and enforcement being stricter than expected.
• Unexpected escalation in geopolitical tensions affecting company operations.
• Clinical conference data such as ASCO/AACR falling short of market expectations.
• Selected stocks' earnings or catalyst realization being slower than expected.

What to watch

• After ASCO 2026 opens on 29 May 2026, focus on NSCLC data, especially Akeso HARMONi-6 interim OS.
• NSCLC-related data from companies such as Kelun Biotech, Innovent, and 3SBio.
• The market's post-AACR interpretation of data from Junshi JS207/JS212, Zai Lab zoci, Sino Biopharm LM299, Hansoh HS-20093, and CSPC EGFR ADC.
• Progress on the resubmission of Simcere Rademikibart NDA.
• Follow-up clinical progress of Hansoh HS-10506 for insomnia treatment.
• Progress of Hutchmed's sovleplenib in China's priority review.
• Pricing and procurement impact after the sixth round of national VBP begins implementation in May.
• Earnings revisions after Q126 and 2025 results disclosures by covered companies.
• Trends in China biopharma financing, number of INDs, registered clinical trials, and out-licensing transactions.