Full-scale breakout! 002460, rapid surge to the daily limit in the afternoon!

On March 27, stock indices in both markets surged strongly, with the Shanghai Composite Index returning above 3,900 points, and the Sci-Tech Innovation Index rising more than 1%; Hong Kong stocks also rebounded, with the Hang Seng Technology Index gaining over 1% during the session.

Specifically, the Shanghai Composite Index saw narrow fluctuations in the morning, then surged in the afternoon, returning above 3,900 points; the Shenzhen Component Index rose over 1%. By the close, the Shanghai Composite Index was up 0.63% at 3,913.72 points, the Shenzhen Component Index rose 1.13%, the ChiNext Index increased by 0.71%, and the Sci-Tech Innovation Index climbed 1.54%. The combined turnover of the Shanghai, Shenzhen, and Beijing markets was approximately 1.86 trillion yuan, a decrease of about 93 billion yuan from the previous day.

More than 4,300 stocks in the A-share market were in the green, with the pharmaceutical sector performing strongly. Innovative drugs and weight-loss drug concepts stood out, with Shuyou Shen and Rejing Bio hitting the daily limit, and Baili Tianheng rising over 12%; the lithium battery concept erupted again, with Haike Xinyuan hitting the daily limit and achieving a new historical high; Rongjie Co. achieved four consecutive limit-ups, while Ganfeng Lithium (002460) rapidly surged to the daily limit in the afternoon; the chemical sector made a comeback, with Shandong Haohua, Suli Co., and Andon Health A all hitting the daily limit. Notably, Liaoning Energy, which has seen consecutive limit-ups recently, plunged and hit the daily limit down.

In Hong Kong stocks, the innovative drug concept also strengthened. As of the time of publication, Basilea Pharmaceutica was up over 20%, CSPC Pharmaceutical Group rose over 13%, Yiming Bio, and Sanofi were up over 10%, and 恒瑞医药 was up nearly 8%.

Strong Innovative Drugs

The innovative drug concept surged during the session, and by the close, Shuyou Shen, Rejing Bio, and Keta Biotech hit the daily limit with a 20% increase, Baili Tianheng was up over 12%, and Wanbangde and Lianhuan Pharmaceutical also hit the daily limit, while 恒瑞医药 was up nearly 7%.

Lianhuan Pharmaceutical announced on the evening of the 26th that its controlling subsidiary, Changle Pharmaceutical, recently received approval from the National Medical Products Administration for the supplementary application approval notice for Nicorandil tablets. According to the announcement, Nicorandil tablets are used to treat angina pectoris. As of the announcement date, the domestic sales of this drug in sample hospitals for 2024 are estimated to be about 635 million yuan (data from the MoShang Pharmaceutical Database); Changle Pharmaceutical’s R&D investment for this drug is about 7.2 million yuan (unaudited); this is the first production license obtained by Changle Pharmaceutical in 2026.

恒瑞医药 also announced that its subsidiary, Fujian Shengdi Pharmaceutical Co., Ltd., recently received approval from the National Medical Products Administration for the clinical trial approval notice for HRS9531 injection, which will commence clinical trials shortly.

The announcement stated that HRS9531 injection, with HRS9531 as the main active ingredient, is a novel dual agonist targeting the glucose-dependent insulinotropic peptide receptor (GIPR) and glucagon-like peptide-1 receptor (GLP-1R), which can regulate glucose and lipid metabolism, suppress appetite, and enhance insulin sensitivity in the body, thereby improving blood sugar levels and reducing weight. For the indication of reducing the risk of major cardiovascular adverse events in patients with atherosclerotic cardiovascular disease, HRS9531 is expected to achieve cardiovascular benefits indirectly or directly through weight loss and blood sugar reduction. There are currently no similar drugs approved for this indication globally.

Regarding innovative drugs, Zhongyou Securities pointed out that the sector is showing an overall upward trend. On one hand, capital factors are gradually stabilizing, and on the other hand, there have been continuous enhancements in the competitiveness of domestic innovative drugs, whether from BD or recent key project data readings since the beginning of the year. From a mid-term perspective, 2026-2027 is a relative window period where key projects have gone overseas but commercialization has not yet begun. The strong logical β-type opportunities are not yet clear, but the clinical data validation of individual stocks, such as the Pan-KRAS inhibitor from Jakes and Sac-TMT from Kelun Biotech, continues to prove the global competitiveness of domestic new drugs, instilling confidence in the mid-to-long-term large β of global commercialization of domestic new drugs, and a gradual increase in holdings is recommended at this stage.

Lithium Battery Concept Erupts

The lithium battery concept erupted again during the session, with Haike Xinyuan hitting the daily limit and achieving a new historical high; Tianhua New Energy, Xinruida, and others rose over 10%, Rongjie Co. hit the daily limit for four consecutive boards, and Ganfeng Lithium also hit the daily limit in the afternoon, while Tianqi Lithium was up nearly 7%.

Institutions indicated that the demand for lithium mines is on the verge of exploding, while the fragile supply is leaking everywhere. The demand for lithium batteries is fully erupting due to high oil prices, and global lithium battery orders are flooding into China. Scenarios such as energy storage, new energy passenger vehicles, and new energy heavy trucks can clearly feel the strong demand.

Huatai Securities pointed out that the liquidity contraction and changes in risk appetite caused by Middle Eastern events have led to a weak fluctuation in lithium prices. However, considering the supply disruption risks in the domestic Yichun area and overseas Zimbabwe and other regions in the second half of the year, the high oil prices on the demand side are expected to boost expectations for electric vehicles and energy storage. If the assumptions for 2026 are based on a neutral expectation (global new energy vehicle sales growth rate of 10%-15% year-on-year, energy storage cell shipment growth rate of 50%-60% year-on-year), the global lithium carbonate market is expected to maintain a tight balance between supply and demand.

Chemical Sector Active

The chemical sector was active during the session, with Dinglong Co. rising over 17%, and Liuguo Chemical, Shandong Haohua, Suli Co., Andon Health A, Lubek Chemical, and Binhai Energy all hitting the daily limit.

In terms of news, the impact of the Middle Eastern conflict on the global supply chain is extending from the energy sector further into the chemical industry chain. As an important raw material connecting energy and manufacturing, international methanol prices have recently seen a significant increase. The latest report from S&P Global Energy indicates that since the outbreak of the Middle Eastern conflict, spot methanol prices in Southeast Asia, India, Europe, and the United States have all risen to varying degrees. From the outbreak of the conflict until March 20 local time, the CFR methanol price in Southeast Asia has surged by 72%, reaching $555 per ton on March 20, the highest level since March 26, 2021.

Additionally, since March, the bromine market has experienced a rapid price surge. According to data from the Business Society, on March 26, the price of bromine was 63,100 yuan/ton, an increase of 52.78% compared to the beginning of the month, with a cumulative increase of over 75% this year.

Institutions indicated that due to the impact of this round of energy crisis, the operating rate of global chemical enterprises has significantly declined, but end-user demand has not disappeared. The industry is currently undergoing a large-scale destocking cycle globally. Once geopolitical conflicts ease, the global chemical industry is expected to welcome a definitive replenishment market, coupled with the anticipated recovery in end-user demand, which is likely to improve the profitability of chemical products.

Proofread by: Tao Qian