Hengrui Medicine (600276.SS): In-line 3Q with sequential improvement; Growth drivers increasingly broadening beyond oncology; Buy

3Q26 results were in line, with product sales growing modestly yoy but improving materially qoq, and innovative drug sales re-accelerating after 2Q industry disruptions. Collaboration income related to the GSK and BMS deals was broadly in line, selling expenses declined yoy despite sales growth (improving commercial efficiency), while R&D spending continued to rise. Management expects innovative drug sales growth to accelerate further, with earnings partly dependent on the timing of BD income recognition and potential upside from fair-value gains on the Braveheart Bio listing. Growth drivers are increasingly broadening beyond oncology: non-oncology innovative drugs drove the bulk of incremental innovative drug sales, and the GLP-1 portfolio (injectable HRS9531 and oral HRS7535) should become a major new growth engine from 2027, while encouraging phase 2 data for the IL-23p19/IL-36R bispecific SHR-1139 support deeper franchises in immunology and cardiovascular disease. Goldman Sachs fin